Iconiq Capital is a family investment, private equity, and venture capital firm in California, which focuses on technology. Founded in 2011 in San Francisco, California by Chad Boeding, Divesh Makan, and Michael Anders, it invests in early-stage ventures; late-stage ventures; private equity funds; and series C, series D, series B, and series E rounds. Its portfolio of companies includes HeadSpin, Snowflake, Netskope, Zinier, and Soul Machines.
As of May 2021, Iconiq has made 130 investments and has had 21 exits, the most notable of which include Alteryx, Datadog, and SurveyMonkey. The company has raised three funds, their latest being ICONIQ Strategic Partners III, LP. This fund was announced on August 1, 2016 and raised a total of $1.3B.
Iconiq serves high-profile clients, including Facebook Inc.'s Mark Zuckerberg and Sheryl Sandberg, Twitter Inc.'s CEO Jack Dorsey, and LinkedIn co-founder Reid Hoffman. The firm caters to financial and family office needs, such as arranging real estate purchases, private jets, and tax planning.
As of 2021, Iconiq has about $54 billion in assets under management. The company uses its network to invest in startups globally. It has backed companies such as Snowflake Inc., Epic Games Inc., and Robinhood Markets. In Europe, the firm has profitably invested in fintech platform Adyen in 2015 and backed Finnish food delivery startup Wolt. Iconiq is an institutional asset manager with pension funds, with the Canada Pension Plan Investment Board among its fund investors. In 2020, Dyal Capital Partners bought an approximately 6% stake in the firm.
Iconiq Capital offers investment advisory services through third-party portfolio managers. In addition, the firm advises and manages its own mutual fund families, which include the following:
- ICQ Investments
- ICQ Opportunities
- ICONIQ Access
- ICQ CPE
- ICQ CVC
- ICONIQ Strategic Partners
- ICONIQ Real Estate
Iconiq offers a customized portfolio building service that takes into account the client’s particular circumstances, such as risk tolerance, time horizon, and investment goals.
Iconiq Capital utilizes several analytical strategies in the process of making investment recommendations. For instance, the firm evaluates stocks it may invest in by assessing the financial health of the companies they are tied to. This process, known as fundamental analysis, may involve the examination of points such as the company's financial records, its competitors, and the associated economic sector. Iconiq also applies charting, technical, and cyclical methods of analysis.
Additionally, Iconiq doesn’t limit its exposure to specific securities and will consider a wider net than traditional advisors if it deemed appropriate to the client’s situation. The firm may use the following strategies:
- Long-term purchases (securities held at least a year)
- Short-term purchases (securities sold within a year)
- Trading (securities sold within 30 days)
- Short sales
- Margin transactions
- Option writing, including covered options, uncovered options or spreading strategies
Clients of Iconiq Capital usually pay a management fee based on a percentage of assets under management (AUM). The firm sets the ceiling for this fee at 1.5%. Additionally, clients must pay all expenses associated with the underlying funds that their portfolio invests in. The firm provides detailed fee information for its private funds in each fund’s documents. The table below compares Iconiq's maximum advisory fee against median rates in the US.
Estimated fee comparison
The fee estimates shown in the table above only consider the maximum base fees for the services each firm provides. The client may also pay manager fees and other fees at varying amounts. The estimates solely take into account AUM-only fees. Additional expenses are likely, increasing total costs.
According to records that Iconiq Capital filed with the SEC, the company is qualified to serve the following types of clients:
- Family offices
- Individuals and high-net-worth individuals
- Trusts, estates, and charitable organizations
- Corporations, limited liability companies, and other business types
- Private pooled investment vehicles
Iconiq Capital provides services mostly to clients with a net worth of minimum $25 million, but may allow for exceptions in certain cases. In addition, the firm reserves the ICONIQ Private Funds to accredited investors only, who must make a minimum initial investment of $10,000.