Various funding platform iCapital has agreed to amass Parallel Markets, an identification verification software program developer. The phrases of the deal weren’t disclosed, however it’s anticipated to be accomplished throughout the subsequent a number of weeks. The transfer will permit iCapital to supply an end-to-end answer for investor onboarding, verification and monitoring.
Parallel Markets created Parallel Passport—a conveyable digital identification expertise that satisfies know your buyer/anti-money laundering necessities, buyer due diligence guidelines and investor accreditation necessities. As a part of the acquisition, iCapital will introduce iCapital Investor Passport, which can depend on this expertise to assist eradicate the necessity for duplicate investor profiles and person compliance checks. The Passport is scheduled to go stay on the finish of the primary quarter.
In accordance with Lawrence Calcano, chairman and CEO of iCapital, the acquisition was largely pushed by the agency’s need to make the AML compliance course of much less difficult for buyers on its platform. He famous that beforehand, if an advisor’s consumer was investing in a number of merchandise on the platform, they must undergo the AML course of individually for every of these merchandise, even when the identical asset supervisor supplied them.
“We needed to create automation round that,” Calcano mentioned. “After we constructed the corporate, we centered on offering buyers with the Passport, so they may put money into these merchandise as effectively and seamlessly as potential. The Passport we constructed has all of the investor data and fund data, however this AML piece was a handbook and onerous incremental course of. By successfully bundling the 2, we might considerably ease the burden on all of the members making these investments.”
Calcano mentioned iCapital seemed into whether or not it ought to develop the required expertise in-house however finally determined that utilizing Parallel Markets’ product would considerably pace up iCapital’s capability to convey the perform to market. “We checked out gamers within the panorama and it felt like Parallel Markets had the strongest expertise and related views as to what the issues have been and how you can remedy them,” he mentioned.
The iCapital Investor Passport will create a common reusable investor identification for fund buyers on its platform, which they’ll have the ability to use throughout the iCapital Market. It’ll perform as an information locker for storing, managing and sharing private data throughout fund subscription and compliance verification. The expertise will even assist fund managers on iCapital’s platform scale their choices extra effectively and guarantee consistency in compliance.
“We’re thrilled to hitch iCapital and collectively present an modern, tech-enabled identification administration service that powers additional integration between asset and wealth managers in a seamless expertise,” mentioned Parallel Markets CEO and co-founder Tony Peccatiello in an announcement.