Connecting the Front to Back Offices for Private Markets

January 27, 2023
Read Time: 3 minutes
Unified Data

Expanding access to data. Eliminating siloed and disconnected systems. Getting out of Excel? That’s a tall order for firms invested in the private markets.

As your firm grows, efficiently managing data across business functions is crucial. The benefits of harmonized information for the front, middle, and back office come to life through the core analytics they enable for each business unit.

In the front office, a deal team can use clean data to develop a report on their prospective deals with relevant data points, including deal size and type, industry, sector, and market capitalization. Advanced technology allows the team to nimbly ingest industry-specific operational metrics and financial data points. Likewise, Investor Relations teams can create tear sheets with comprehensive fund performance at the click of a button and deliver investor-specific capital balances, NAV calculations, performance metrics, asset transparency views, or ad-hoc analysis based on user requests.

Looking at the middle office, access to comprehensive data allows portfolio monitoring teams to aggregate asset data and ensure a strict review of their entire portfolio during the investment lifecycle. In the back office, accounting teams can aggregate portfolio and partnership data on a single platform for comprehensive fund oversight.

Clean and normalized data has the power to optimize processes and empower you to make informed investment decisions. Using data as an asset can be challenging, though.

Mapping Data Sources and Creating a Common Model

Many private market firms built their technology stacks on point solutions that aim to address a single use case. As a result, each solution has its own database and workflow and typically lacks an integrated foundation.

If you don’t track data in a specific point solution, you may be managing it in spreadsheets that are error-prone and not auditable – making it easy for mistakes to go unnoticed. What’s more, spreadsheets like Excel limit collaboration, can only manage certain-sized datasets, and are not suitable for real-time analysis. These shortcomings mean that spreadsheets cannot scale as you raise new capital, scale investment teams, or invest in new types of assets.

Creating a common data model helps to improve information management. Data mapping connects attributes and values between sources to develop databases that talk to each other. With a data-rich, domain-aware foundation, systems automatically recognize relationships between datasets. The result is consistent firm-wide data that is highly usable and allows teams to collaborate on decision-making.

Enriching Data

Once you capture and store data, the next step is integrating it into proprietary and third-party systems. Robust pipelines and models to streamline processes and organize coherent datasets go a long way in your quest to enrich data. Organized sources, tags, and user-defined fields make the data easier to find and highly usable. Sending information downstream to internal and external systems further enables data to play a vital role in business decisions.

Whether you’re looking to consume key reports such as rental agreements for commercial leases or lending agreements for private credit instruments, the ability to easily integrate data with accounting, portfolio monitoring, and treasury point solutions is a game-changer.

Robust data quality and exception flagging tools ensure integrity, accuracy, and completeness – helping transform raw data into trusted information.

Turning Data into Actionable Intelligence

A single source of information through a consolidated and secure data hub equips private market investors with powerful architecture that connects to multiple vendors and third parties. Cloud-based technology replaces antiquated systems and workflows to generate more value from data, build scale, and accelerate your digital transformation.

Streamlining data processes also enhances the quality and completeness of information and reduces data duplication. With greater access to clean and organized data, you are in a stronger position to remove silos between business units. In addition, a universal view lets you improve information flow between teams and retire the need to reconcile data manually.

Arcesium’s Front-to-Back Technology Capabilities

Arcesium provides data-centric cloud-based software solutions, financial operations, and data management services to private market investors, including fund managers investing across multiple strategies. Whether you’re investing in private equity, private credit, real estate, or infrastructure, we’re here to help.

Our domain-aware capabilities can ingest data from multiple sources and in numerous formats. Complemented with powerful reporting and analytics, our platform is engineered to harmonize multiple data sources and digitize the investment, fund, and investor lifecycles.

As you unlock greater value from your data, our Private Market capabilities help resolve quality issues, aggregate, organize, and normalize data so that you can quickly access it for investment decision-making. The result is the ability to turn complexity into clarity.

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Cesar Estrada
Cesar EstradaPrivate Markets Segment Head

Cesar is responsible for overseeing Arcesium’s application of its core competencies in data integration and harmonization to the investment lifecycle of managers in private capital markets, including private equity, private debt, real estate, and infrastructure.

Previously, he served as Senior Managing Director and Alternatives Segment 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 (AUA) by leading new product launches, expansion into new client segments, strategic partnerships, and acquisitions. Prior to that, as a Managing Director at J.P. Morgan, Cesar led the Private Equity & Real Estate Funds Services business from launch to $350Bn AUA. While at J.P. Morgan, he also held investment banking roles in New York, London, and Hong Kong.

Education & Credentials

  • MBA, Kellogg School of Management at Northwestern University
  • BS in Chemical Engineering, ITESM

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