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 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.

Subscribe to Alt Goes Mainstream to receive the weekly newsletter every Sunday and all of AGM’s podcasts.

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.