Secondary trading in private funds has grown steadily in recent years, but the market remains fragmented. Research compiled by Bloomberg shows that average annual turnover still represents a small fraction of the multi-trillion-dollar assets committed to closed-end structures. By integrating Tangible’s system, iCapital intends to create larger pools of buyers and sellers, improve price discovery and shorten the time needed to complete trades.
Platform integration set for completion by end-2025
iCapital said Tangible’s technology will be embedded in its existing digital marketplace by the fourth quarter of 2025. At that point, advisers and qualified investors will gain access to periodic auctions that match orders for funds across multiple strategies. The service is expected to support both traditional closed-end vehicles and the newer semi-liquid structures that allow limited redemptions.
Beyond auctions, the roadmap includes real-time pricing data, analytics and post-trade processing tools. Sellers will be able to initiate events to dispose of portions of their holdings, while buyers will benefit from faster deployment of capital into seasoned, diversified assets. Calcano described the end-to-end workflow as “an extension of our platform” that will offer the transparency and flexibility clients expect.
For fund sponsors, iCapital plans to roll out a suite of liquidity solutions that can be embedded directly into products at launch. Managers would gain optional access to Tangible’s infrastructure without building in-house capabilities, potentially making their vehicles more attractive to investors who want periodic exit opportunities.
Broader implications for advisers and investors
In practice, the initiative could reduce portfolio-construction challenges that arise from lock-up periods. Financial advisers often cap alternative allocations to preserve overall liquidity, particularly for high-net-worth clients whose liabilities may be less predictable than those of institutions. iCapital believes that predictable secondary windows will encourage larger commitments and support tactical reallocations without forcing investors to sell public-market assets.
The partnership also aligns with regulatory attention on valuation practices and investor protection. Regular trading events, coupled with benchmark data and standardized documentation, may help market participants address concerns over pricing opacity and information asymmetry.
Next steps and market outlook
Engineering work on the integration has already started, and a pilot program is scheduled for the second half of 2024. Early participants will include a group of registered investment advisers and family offices that already use iCapital’s portal for fund subscriptions.
While financial terms were not disclosed, the companies noted that the investment provides Tangible Markets with capital to expand its engineering team and enhance cybersecurity safeguards. The firm will continue to operate under its own brand, serving both iCapital clients and third-party platforms.
With private-market assets under management projected to exceed $23 trillion globally by 2027, according to industry forecasts, demand for organized secondary venues is expected to grow. If the integration proceeds as planned, iCapital and Tangible could be well positioned to capture that expansion.
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Segundo as duas empresas, o objetivo é remover uma das principais barreiras que limita a adoção mais ampla de estratégias alternativas: a dificuldade de sair de posições antes do evento de liquidação natural de um fundo.
