iCapital, a fintech platform focused on alternative investments, plans to acquire Parallel Markets to create a reusable digital identity verification system for investment onboarding. The acquisition will allow iCapital to introduce what it calls the first KYC/AML passport technology for alternative investments, aiming to eliminate redundant compliance checks.
The deal, terms of which were not disclosed, combines iCapital’s investment marketplace with Parallel Markets’ identity verification technology to streamline the process of investor onboarding and compliance verification. The integrated platform will create a universal digital identity that investors can use across iCapital’s marketplace and suite of alternative investment offerings.
“Onboarding and verifying digital investor identity and compliance is a major friction point in private markets investing,” said iCapital chairman and CEO Lawrence Calcano. “Parallel Markets has pioneered software that supports a reusable investor passport, streamlining these duplicative processes for advisors, investors, and fund managers.”
