🎥 Arcesium's Cesar Estrada - data silos and technology integrations in private markets

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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