July 10 (Reuters) - Alternative investments fintech iCapital was valued at more than $7.5 billion in its latest external funding round, where it raised more than $820 million, the company said on Thursday, highlighting increasing investor interest in platforms that expand access to private-market strategies.

Asset managers are pursuing individual investors and smaller wealth-management clients for private market investments, which have traditionally been limited to institutional investors such as pension funds and university endowments.

However, some analysts argue that the illiquid and high-risk nature of such assets might add regulatory friction to such efforts from asset managers.

The round was led by asset manager T. Rowe Price TROW.O and hedge fund SurgoCap Partners.

The funding comes over three years after an Apollo-backed APO.N round valued the New York-based company at over $6 billion. Alternative asset giant Blackstone BX.N and index fund pioneer BlackRock BLK.N are also investors in iCapital.

"The proceeds from this capital raise will be strategically deployed to accelerate our acquisition efforts, with a focus on enhancing our technology platform and expanding our data capabilities," said Michael Kushner, chief financial officer at iCapital.

Founded in 2013, iCapital has completed 23 strategic acquisitions, including the purchase of the wealth alternatives unit of Citigroup in May, adding to its portfolio more than 180 funds distributed by the bank across private asset classes.

The company assists investment professionals with asset administration, analytics, and educational tools, making traditionally institutional products easier to manage.

iCapital currently services $945 billion in assets on its platform, with $257 billion of those in alternative platform assets.

(Reporting by Ateev Bhandari in Bengaluru; Editing by Tasim Zahid)

((Ateev.Bhandari@thomsonreuters.com;))