- iCapital integrates reusable KYC/AML technology for alternative investing
- Acquisition streamlines investor verification and compliance processes
What Happened: iCapital to Acquire Parallel Markets for Streamlined Investor Onboarding with Reusable Investor Passports
iCapital has announced its acquisition of Parallel Markets to streamline investor onboarding and compliance in private markets. By adopting Parallel Markets’ reusable identity technology, iCapital will create a reusable KYC/AML passport. This system lets investors easily manage and share their identity data across different funds, saving time and cutting costs on repetitive compliance checks. The digital identity acts as a secure storage for personal information, streamlining the process for future investments. AI and machine learning will also automate verification, improving the experience for both investors and fund managers. This innovation aims to boost efficiency, lower costs, and simplify compliance in alternative investments.
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Why it is important
iCapital’s acquisition of Parallel Markets is a big step forward for private markets and alternative investments. Right now, verifying identities and checking compliance are major challenges, with investors often needing to submit the same information for each new investment. This causes delays and higher costs for fund managers. iCapital’s new reusable digital identity system will fix this by allowing investors to use one profile across multiple opportunities, making the process faster and cheaper. This move is part of a bigger trend in the investment world towards digital tools and automation, which help improve efficiency and compliance. It could set a new industry standard, benefiting both investors and fund managers in a more complex regulatory landscape.
