Welcome back to the Alt Goes Mainstream podcast.
Today we sit down with a technology and fund services veteran who has worked with many of the industry’s largest asset managers.
Cesar Estrada is Private Markets Head at Arcesium, a global financial technology company delivering pre- and post-investment operations and enterprise data management solutions designed to systematize the most complex workflows.
Arcesium was built from a platform developed and tested by investment and technology development firm, the D. E. Shaw Group, and launched as a joint venture with Blackstone Alternative Asset Management. J.P. Morgan, another large client, later made a strategic investment in the company, helping Arcesium further its mission: to power the entire investment lifecycle.
Cesar is responsible for Arcesium’s data management and investment operations technology and services offered to private markets fund managers and investors.
Previously, he served as Senior Managing Director and Alternatives Business Head for North America at State Street — a role in which he drove the growth agenda for a business with approximately $1 trillion in Assets Under Administration by leading new product launches, expansion into new client segments, strategic partnerships, and acquisitions. He served on the board of State Street Fund Services Inc. Prior to that, as a Managing Director at J.P. Morgan, Cesar led the Private Equity & Real Estate Funds Services business from launch to $350B AUA.
Cesar and I had a fascinating conversation about the impact of technology and automation on private markets. We discussed:
What private markets going mainstream means for pre- and post-investment operations.
Why alternative asset managers need to have technology solutions to manage, track, and analyze data and workflows if they want to scale.
The biggest challenges alternative asset managers face as they handle the increase in data management, more funds, and more investors.
What technology or workflow solutions are still missing.
How much AI will impact technology workflows in private markets.
Why ABF has become such an important part of the private credit ecosystem.
Thanks Cesar for coming on the show to share your wisdom and experience in private markets.
You can also see a recent Q&A with Cesar on AGM here.
If you want to learn how Arcesium is delivering the technological infrastructure required to manage the complexities of asset-based financing, you can download their white paper below and read thoughts on the asset-based finance space from Arcesium’s Private Markets Head and industry veteran Cesar Estrada.
Clip #1: What are roadblocks for firms that haven’t yet adopted technology?
Clip #2: How are asset managers thinking about the strategic elements of technology?
Clip #3: Breaking silos and streamlining operations.
Clip #4: How does technology intersect with everything that’s going on in private credit?
Show Notes
00:00 Introduction and Welcome to the Alt Goes Mainstream Podcast
00:46 Guest Introduction: Cesar Estrada
03:05 Cesar's Experience in Fund Services
03:21 Evolution of Private Markets
03:47 Industry Shifts and Consolidation
04:16 Evolving Roles of CFOs and CTOs
04:47 Entrepreneurial Itch and Joining Arcesium
05:03 Building Technology Solutions for Private Markets
05:22 Importance of Industry Experience in Tech Development
05:50 Arcesium's Joint Venture Origins
06:03 Technology Architecture and Integration
07:48 Client-Centric Ownership Model
07:58 Serving Large and Small Asset Managers
09:12 Adapting to Client Needs
10:27 Past vs. Present: Technology in Asset Management
11:14 Data Silos and Integration Challenges
11:47 Roadblocks to Technology Adoption
13:31 Strategic Imperatives for Growth
13:59 Complexity in Investment Strategies
14:51 Evolving Client Needs
15:34 Strategic Elements of Technology
17:01 Point Solutions vs. End-to-End Solutions
19:09 Role of CTO in Technology Selection
20:08 Build vs. Buy: Technology Decisions
21:14 Investment Team's Understanding of Technology
22:03 Leveraging Technology for Growth
26:12 Operational and Data Challenges in ABF
27:52 Importance of Technology in ABF
29:56 Wealth Channel and Evergreen Products
30:58 Product Innovation in Private Markets
31:43 Future of Private Markets Technology
32:33 Magic Wand: Ideal Technology Solutions
33:50 User Experience in B2B and B2C Contexts
35:18 Adoption of New Tools and Technologies
37:35 Impact of Gen AI on Operations
38:40 Future of Gen AI in Asset Management
40:07 Marrying People and Technology
40:59 Next Steps in Post-Investment Processes
43:15 Interesting Alternative Investments
43:28 Personal Investment Strategies
45:05 Conclusion and Final Thoughts
Editing and post-production work for this episode was provided by The Podcast Consultant.
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