LA JOLLA, Calif., Sept. 30, 2020 /PRNewswire/ -- AlphaCore Wealth Advisory, a leading wealth advisor firm focused on allocating to traditional and alternative investments, announced today it secured the rights to acquire the Private Client Group (PCG), a team directly serving high-net-worth clients, from iCapital Network1. In the same transaction, AlphaCore divested factorE, a portfolio tool which helps advisors assess the performance and risk of alternative holdings, to iCapital. Terms of the agreement were not disclosed.
AlphaCore Acquires Private Client Group (PCG) Rights from iCapital
The right to acquire the PCG team was granted to iCapital as part of the firm's recent acquisition of Artivest. The team, based in La Jolla, is composed of six seasoned investment professionals and serves over 600 high net worth family relationships.
However, consistent with iCapital's focus on serving the needs of financial advisors – rather than individual investors – iCapital worked closely with the PCG team during the Artivest negotiations to identify a wealth management firm where the needs of the PCG clients would be well-served.
iCapital immediately recognized AlphaCore as an appropriate fit for the PCG Team based on their long-standing relationship, the extent to which they have embraced the opportunities of alternatives for their investors and the PCG team members' affinity for AlphaCore. Through his former role as a partner at Altegris, AlphaCore's Founder and CEO, Dick Pfister, is well acquainted with the PCG team, having forged a strong relationship before Altegris merged with Artivest in 2018. Recognizing the obvious synergies, iCapital reached agreement for AlphaCore to acquire the team immediately after the Artivest transaction closed.
With the acquisition of PCG, AlphaCore now services approximately $1 billion in assets under advisement. AlphaCore Wealth Advisory, an SEC registered investment advisor, was founded just over five years ago and has been rapidly growing. As an independent wealth advisor, it works directly with individual private clients as a fiduciary to customize financial plans and investment management solutions that include the use of alpha generators or alternative investments in most client portfolios. AlphaCore has an open architecture platform offering access to a variety of alternative strategies.
"The Private Client Group is made up of a group of talented advisors who understand the needs of their high-net-worth clientele incredibly well and we are proud to add them to our team along with their respected roster of clients," said Dick Pfister, Founder and CEO of AlphaCore and AlphaCore Technologies.
"iCapital was established to help wealth advisors successfully serve their clients. We have taken this step to stay true to our mission and ensure that iCapital is a facilitator of that success and not in competition with advisors for their clients," said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital Network. "We were extremely thoughtful in making the right decision on behalf of the PCG team and their clients," said Mr. Calcano.
"As a client of iCapital, we've had a mutually beneficial relationship from the start," continued Mr. Pfister. "We are excited for AlphaCore's next chapter with this remarkable team on board."
AlphaCore Divests Portfolio and Risk Analytics Tool, factorE
As part of the same transaction, AlphaCore divested factorE, AlphaCore's proprietary portfolio and risk analytics tool launched in 2018, to iCapital. The innovative tool helps advisors, chief investment officers and research analysts manage complex portfolios that hold a mix of traditional and alternative investments such as mutual funds, ETFs, stocks, commodities, private equity, private credit, hedge funds and real estate.
"iCapital is committed to helping the wealth management industry understand the opportunities and complexities of alternative investments as part of a diversified portfolio," said Mr. Calcano. "Our decision to continually build out our toolkit with technologies such as factorE is based on listening to our network of advisors and asset managers, and understanding what they need to be successful as they navigate the world of alternative investing."
"We are proud of the accomplishments of factorE and, in contemplating its future, carefully considered the ideal partner to build upon its success," said Mr. Pfister. "iCapital Network has set the standard in automating the end-to-end alternative investing process for advisors, and their technological capabilities make them uniquely qualified to guide factorE forward in its next chapter."
iCapital plans to evaluate how the factorE tool best fits into iCapital's existing technology and service offerings. It will build out a tailored roadmap for the tool's augmentation and integration into the firm's advisor resources over the next several months.
The transaction was completed on September 23, 2020. Mintz Levin served as the legal advisor for AlphaCore and Ropes & Gray LLP served as legal advisor to iCapital Network.
AlphaCore is a wealth advisory firm whose team members have years of experience allocating to traditional and alternative investments. They create customized financial and wealth management plans for their clients. AlphaCore believes that a well-thought-out financial plan should include alternative investments to potentially lower portfolio risk and help clients reach their financial goals. AlphaCore was named one of the Fastest Growing Private Companies by the San Diego Business Journal in 2019. Its growth trajectory has been credited to its experienced team and its unique method of asset allocation, which incorporates alternative strategies as a core building block in a diversified portfolio while also including traditional asset classes such as stocks and bonds.
For additional information, please visit AlphaCore's website at www.alphacorewealth.com | LinkedIn: https://www.linkedin.com/company/alphacore-capital-llc/ | Twitter: @alphacorecap
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1 Institutional Capital Network, Inc. and its affiliates (together, "iCapital Network" or "iCapital")
SOURCE AlphaCore Wealth Advisory