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 that 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.
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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 here and read thoughts on the asset-based finance space from Arcesium’s Private Markets Head and industry veteran Cesar Estrada.
Show Notes
00:00 Introduction and Welcome to the Alt Goes Mainstream Podcast
00:39 Guest Introduction: Cesar Estrada
02:37 Cesar's Background
02:57 Cesar's Career Path
03:35 Evolution of Fund Services Industry
04:49 Arcesium's Core Competencies
05:06 Technology in Private Markets
05:27 Arcesium's Joint Venture Origins
06:12 Technology Architecture
07:11 Client-Centric Ownership Model
07:18 Building for the Biggest
07:46 Solving Complex Problems
08:44 Challenges and Solutions in Data Management
10:28 Data Silos in Asset Management
10:53 Roadblocks to Technology Adoption
11:41 Operations and Technology Bottlenecks
12:31 Strategic Imperatives for Growth
14:20 Hiring and Strategy in Asset Management
15:55 Point Solutions vs. End-to-End Solutions
17:27 Role of the CTO
18:21 Build vs. Buy Decision
19:22 Investment Team's Understanding of Technology
19:22 The Impact of AI and Future Innovations
20:07 Technology's Leverage for Smaller Firms
21:36 Consolidation in Private Markets
22:22 Technology for Scaling Firms
22:40 Flexibility in Private Markets
23:05 Technology in Private Credit and ABF
25:35 Volume Problem in ABF
25:55 Data Ecosystem in ABF
27:10 Wealth Channel and Evergreen Products
28:04 Product Innovation in Private Markets
28:45 Future of Private Markets
30:05 Technology Selection Process
30:51 User Experience in Technology
31:40 Consumer Experience in Private Markets
33:06 Hands-On Technology Evaluation
33:42 Reducing Operational Headcount
34:02 Gen AI in Asset Management
35:33 Future Impact of Gen AI
36:20 Marrying People and Technology
37:01 Next Phase in Asset Management Technology
39:16 Cesar's Personal Investment Views
40:40 Conclusion and Final Thoughts
Editing and post-production work for this episode was provided by The Podcast Consultant.
