J.P. Morgan opens door for Aussie investors to alt strategies

Patrick Buncsi

13 December 2023

J.P. Morgan Asset Management (JPMAM) will make its global alternative strategies available to Australian wholesale investors and wealth managers after securing a new partnership with local distributor and wealthtech developer iCapital, the pair have announced.

As part of the new collaboration, iCapital has agreed to distribute JPMAM’s select global alternative strategies through its proprietary, alternatives market-focused, technology platform.

JPMAM head of wholesale, Australia and New Zealand, Mark Carlile, welcomed the firm’s new partnership with the wealthtech firm, believing it would make its alternatives strategies “more accessible, flexible and efficient for wholesale [Australian] investors”.

Andrew Creber, JPMAM’s Australia and New Zealand chief executive said the “partnership marks an important milestone as democratising alternatives is one of our strategic priorities globally.

“We are committed to transforming our offerings into an evergreen solution, enabling a wider group of investors to maintain a consistent exposure to the private markets in the long term.”

Commenting on the partnership, Carlile recognised “a growing appetite and surging demand, especially amongst Australian wholesale investors, to access and increase their allocations to alternatives”.

These strategies, he said, “provide additional sources of uncorrelated returns, income opportunities, inflation management and diversification to their investment portfolios”.

iCapital’s head of international Marco Bizzozero said the firm was “honoured” to expand its partnership with a “global leader” in asset management.

JPMAM is one of the world’s largest alternatives asset managers, counting US$213 billion (AU$312 billion) in alternative assets under management. Among its diverse mix of alternatives strategies include investments in sub-classes covering real estate, private equity and credit, infrastructure, transport, timber, liquid alternatives and hedged funds.

Founded in 2013, iCapital, a New York-headquartered wealthtech and developer of a dedicated alternative and private markets investment marketplace, supports US$170 billion (AU$258 billion) in platform assets. The firm notes its support for both asset managers and distributors in expanding their access to private markets.