Citigroup has reached an agreement to sell its wealth alternatives business to fintech firm iCapital for an undisclosed amount.

The indirect subsidiary, Citi Global Alternatives, is the adviser to Citi Wealth’s global alternative investment fund platform.

The platform represents more than 180 alternatives funds, which are distributed globally.

It comprises investment vehicles across a range of alternative investment strategies and asset classes, including private equity, growth equity, private credit, infrastructure, venture capital, real estate and hedge funds.

“We are excited to partner with Citi Wealth to drive growth for their alternatives business globally,” said iCapital chair and CEO, Lawrence Calcano.

“iCapital’s technology platform will streamline the operations and management of their current and future alternative investment funds platform.

“Additionally, we will enhance Citi Wealth’s global sales capabilities with a dedicated alternative investment specialist team, equipping advisers with more resources focused on pre-sale, sale, and post-sales investment activities.

“The team will cover all asset classes and product structures, working in close partnership with Citi and general partners to support alts platform growth.”

Citi Wealth alternatives and investment manager solutions head, Daniel O’Donnell, added: “Citi Wealth already has a strong working relationship with iCapital on alternative solutions, and we’re excited to expand our relationship to bring greater integration of iCapital’s market-leading digital capabilities to our advisers, bankers, investment counsellors, and clients.”

Following the transaction, iCapital will manage and operate the fund platform, while Citi will remain as the distributor of such funds and will continue offering guidance to its clients on the role of alternative investments within a diversified investment strategy.

The terms of the deal were not disclosed.

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