Morgan Stanley agreed to sell a business that administers its alternative-investment feeder funds to iCapital Network, a financial-technology firm run by a former Goldman Sachs Group Inc. banker.
ICapital will assume oversight of 115 Morgan Stanley feeder funds, which invest in private equity, hedge funds and real estate for the bank’s wealth-management arm, New York-based iCapital said Friday in a statement that didn’t include terms.
ICapital has benefited from the willingness of Wall Street firms including Credit Suisse Group AG and Deutsche Bank AG to outsource some technology functions in an effort to cut costs.
The agreement with Morgan Stanley will boost assets serviced by iCapital to $40 billion from $28 billion earlier this month, when it completed a similar transaction with Bank of America Corp.