iCapital, a global fintech platform serving the wealth management industry, is being eyed by advisors as a possible initial public offering candidate as the company explores strategic options, according to three sources familiar with the matter.

The company has been considering potential avenues, with an IPO seen by the market as its most likely plan, said two of the sources.

Discussions are still in the early stages, but a formal advisory appointment process could begin as soon as next year, or early 2026, they noted.

One of the sources said that iCapital has several options open due to its attractive growth. The firm’s valuation is approaching USD 10bn, this source added. As of June 2023, iCapital’s valuation was estimated at over USD 6bn, based on a December 2021 fundraising round.

The same source said that there are also just two main players operating in the alternative investment platform sector, with the other being New York-based CAIS, the alternative investment platform which last raised USD 225m in a 2022 funding round led by some of the same investors in iCapital, including Apollo and Franklin Templeton, at a valuation of over USD 1bn.

iCapital, a private company, offers access to alternative investments such as hedge funds, private equity, private credit and real estate. Its operating system automates private market investing and integrates with clients’ existing tools and infrastructure, according to its website.

A sector banker though said that the company might not be ready to go public yet, citing pressure on its business model and the need to strengthen its technological capabilities.

iCapital recently bolstered its tech offering by acquiring Mirador, a provider of investment data aggregation and financial reporting. That acquisition, for an undisclosed sum, helped bolster the company’s data management and reporting capabilities.

In 2022, the company acquired UBS’s legacy US alternative investment manager and its feeder fund platform, “AlphaKeys Funds,” which manages more than USD 7bn in client assets.

iCapital recently announced two senior leadership hires to boost its presence in APAC and EMEA: Tuan Lam will act as head of APAC, and Daniel Imhof will lead client solutions for EMEA.

The company is backed by investors including WestCap, Apollo, Temasek, Blackstone, KKR and The Carlyle Group among more than 20 investors. The company sold a 10% minority stake to WestCap and UBS for USD 440m in July 2021 and later raised a further USD 50m in December 2021. In 2022, Bank of America also purchased an undisclosed stake in the company at a USD 6bn valuation.

Founded in 2013, iCapital’s mission is to make high-quality alternative investments accessible to wealth advisors and their high-net-worth clients while helping fund managers reach new sources of capital.

The company now manages more than USD 191bn in platform assets, including USD 30bn from non-US investors, according to its website.

iCapital’s international expansion aligns with the growing alternatives industry, with private markets now being a key strategy for wealth managers seeking diversification and higher returns. This trend has driven widespread adoption of iCapital’s platform among banks, wealth managers and asset managers globally, according to its website.

iCapital employs more than 1,200 people and has 13 offices worldwide.

iCapital declined to comment. WestCap, Apollo, Blackstone, KKR, The Carlyle Group and the other investors in the company either declined or did not respond to comment requests.