iCapital® Announces Strategic Expansion of Solutions for Asset Managers with the Acquisition of Passthrough

WHY THIS MATTERS: This acquisition represents a critical operational consolidation within the alternative investments technology ecosystem, driven by the need to efficiently manage surging capital flows from both private wealth and institutional channels. For General Partners (GPs), the biggest bottleneck to scaling fundraising is the complex, fragmented process of LP onboarding, which involves managing subscription documents and ensuring rigorous financial crime compliance (KYC/AML). By integrating Passthrough’s dedicated compliance infrastructure and onboarding workflows with iCapital’s massive distribution platform and Identity Solutions, the combined entity aims to create a true digital spine for the entire lifecycle. The true industry significance lies in the ability to deliver a unified, highly scalable platform that standardizes the collection and management of investor identity data, which is essential for maximizing growth while minimizing the administrative drag associated with global private markets transactions.

iCapital1, the global fintech company shaping the future of investing, announced that it has entered into a definitive agreement to acquire Passthrough, a leading provider of investor onboarding solutions and financial compliance infrastructure for GPs. The acquisition enhances iCapital’s support of the LP onboarding process by extending fundraising across both private wealth and institutional channels, giving GPs a unified, highly scalable platform to onboard and service investors of any type, size, or strategy. Together, iCapital and Passthrough support 1,200 GPs and product providers ranging from emerging and specialty managers to many of the largest asset management firms in the world.

“iCapital began with a clear focus on modernizing and simplifying how GPs connect with the wealth channel. The acquisition of Passthrough is a natural extension of that focus and expands our capabilities to support the global GP community as they engage with—and serve—all of their LPs across the wealth and institutional markets,” said Lawrence Calcano, Chairman and CEO of iCapital. “We are excited to welcome Passthrough and their talented team to iCapital, and together, we will continue to deliver a more unified, seamless client experience across the investment industry.”

In 2025, the institutional flows into alternative investments exceeded $1.30 trillion2. With the acquisition of Passthrough, iCapital expands its onboarding solution and financial compliance infrastructure to support GPs holistically, creating a scalable pathway to capture institutional demand while also tapping into the growing allocations from wealth managers—resulting in an elevated, consistent client experience.

“We are thrilled to join the iCapital team and integrate our investor identity and onboarding technology capabilities with iCapital’s global platform, and together we will accelerate the industry’s shift toward a unified, identity‑first standard—for the entire alternative investment ecosystem,” said Tim Flannery, CEO and Co-founder of Passthrough.

Passthrough is a financial technology platform focused on modernizing investor identity, subscription documents, and KYC/AML compliance for private markets. Its software enables fund managers to automate investor onboarding, streamline subscription workflows, and securely manage sensitive identity data, supported by deep integrations across the private capital technology ecosystem. Passthrough’s capabilities complement iCapital’s Identity Solutions, and the acquisition enables iCapital to further enhance and tailor these tools to meet the specialized reporting, operating, and compliance needs of all LPs across the private markets landscape.

FF NEWS TAKE: This deal unequivocally moves the needle by directly tackling operational friction—the hidden cost of complexity in private markets. It sets a new expectation for GPs: that a single, seamless digital experience should be standard whether dealing with a small private wealth allocation or a large institutional check. The key development to monitor next is the speed at which this unified platform can accelerate the industry’s shift toward a universal, reusable investor identity standard across fund administrators and custodians, making manual subscription workflows truly obsolete.