Alternative investment platform iCapital formed a strategic partnership and announced an investment in Tangible Markets Ltd., a firm that focuses on providing liquidity for private market investments, including stakes in closed-end and semiliquid funds. Together, iCapital and Tangible plan to create an automated marketplace where wealth managers will be able to trade illiquid holdings. The marketplace is scheduled to launch on iCapital’s platform by year-end 2025. iCapital and Tangible did not disclose the terms of the deal.
Limited liquidity has been one of the sticking points for advisors trying to scale up their clients’ exposure to alternative investments. Investors with lower net worth may be unable to hold their positions in private equity, private credit or real estate funds for the requisite 10 to 15 years it takes to reap maximum rewards from these vehicles. Being unable to exit their positions when they want to can also rattle individual investors. For example, in the past two years, several non-traded REITs enforced redemption caps and explored other options for shoring up their liquidity as scores of investors asked to redeem positions simultaneously, above the monthly and quarterly redemption limits on the REITs. Meanwhile, the global market for the sale of secondary stakes in private real estate portfolios, funds and single assets reached a record $12.4 billion in 2022, reported Ares Management.
The iCapital and Tangible digital marketplace would give advisors access to a robust buyer-seller network and regular auctions for secondary stakes, allowing them to find liquidity exits for their clients outside those provided by alternative investment funds directly. The marketplace will encompass strategies including private equity, private credit, real assets and hedge funds.
Tangible, which works with wealth managers and GPs around the globe, can underwrite, exchange and close transactions ranging from $75,000 to over $250 million in value.
“Lack of liquidity has long been a friction point for broader allocations to alternative investments. We’re proud to partner with Tangible Markets and invest in advancing the technology to redefine institutional-grade liquidity solutions,” said Lawrence Calcano, chairman and CEO of iCapital, in a statement. “By building a robust secondary market, we offer clients greater transparency and the flexibility to efficiently rebalance portfolios without waiting for a natural liquidity event—enabling strategic allocation adjustments while maintaining exposure to long-term, value-generating assets.”
In separate news, iCapital reported that allocations on its platform rose 12.7% from the first to the second quarter of 2025, to $257 billion.
Second-quarter fund flows show there have been some minor adjustments in where private wealth allocations are going. For example, private credit allocations experienced a 100-basis-point drop from the first to the second quarter of 2025. The change may reflect some apprehension on the part of investors about allocating money to loans made to private companies in a more volatile market environment, which raises the likelihood that some of those loans might face default.
At the same time, funds flowing to private equity and real assets rose modestly in the second quarter, by 100 basis points each. Real assets, especially infrastructure, can serve as a hedge against inflation and offer investors a sense of safety at a time of uncertainty.
Meanwhile, hedge funds experienced a 100-basis point drop in allocations during the quarter. Hedge fund management fees tend to be on the higher side, and the performance they have delivered in recent years just hasn’t been enough to justify the expense, according to some market observers.
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