GAI offers investment options through feeder funds that invest in external funds or portfolio companies
Wells Fargo Advisors headquarters in St. Louis, Missouri. (Credit: Marcus Qwertyus/Wikipedia.)
Wells Fargo Investment Institute (WFII) has agreed to sell its Global Alternative Investments (GAI) Feeder Fund Platform to iCapital Network.
In addition to the sale, the financial services company is also planning to make investment in iCapital Network under the terms of iCapital’s latest fundraising round.
WFII president Darrell Cronk said: “We are pleased to partner with iCapital to deliver alternative investments to enhance the experience for our advisors and clients. This transaction will allow us to continue to provide innovative alternative investment solutions to our clients as well as upgrade the overall platform and launch new offerings.”
The Wells Fargo GAI Feeder Fund Platform provides brokerage and wealth management clients with the capability to invest in alternative solutions including private equity, private debt, hedge funds, private real estate, and direct private investments across investment vehicles.
GAI has been providing investment options through feeder funds that invest in external funds or portfolio companies since 2006.
iCapital will deploy a team of Wells Fargo employees working for GAI Feeder Fund Platform
Based on increased alternative investments, WFII has partnered with iCapital, and is expected to continue providing its existing investment services to its clients.
The services include upfront and ongoing investment due diligence, product selection, investment monitoring, platform management, product support, and education.
Under the terms of the transaction, iCapital will provide employment to a team of Wells Fargo employees who are currently supporting operations for the GAI Feeder Fund Platform. The team is anticipated to continue supporting the fund portfolio to ensure continuity of service.
The transaction is expected to be completed, subject to customary closing conditions, during the second half of 2020.
WFII is a registered investment advisor and wholly owned subsidiary of Wells Fargo Bank, which is an affiliate of Wells Fargo & Company.
Recently, Wells Fargo & Company has announced a new organisational structure in a bid to ensure greater oversight of all risk-taking activities.