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 .
