Clearstream: your partner in alternative investment funds and private market investments

11.12.2024

Democratising private market investments  

The market for alternative investment funds (AIFs) has seen significant changes, with a growing trend towards private market investments. Traditionally reserved for institutional investors, these investments are now becoming accessible to private clients, allowing for greater portfolio diversification. Expanding private market fund offerings to private clients clearly presents multiple opportunities, but also poses challenges for fund distribution. 

Addressing higher costs and new requirements 

Rising costs and declining profitability are driving asset managers to develop new solutions. At the same time, investors, are seeking more tailored investment products. Issuing funds has become more complex, and this necessitates a reassessment of distribution channels to effectively cover global markets. In addition, many financial institutions are faced with the challenge of adapting their core banking systems to the specific requirements of private market investments. It is crucial to ensure that these products are compatible for custody accounts and can be efficiently processed in order to simplify fund distribution. 

Comprehensive solutions for simplifying AIF distribution 

Clearstream Fund Services is a leading provider of solutions for the entire fund ecosystem. For private market funds and AIFs, we have over a decade of experience and already manage over €300 billion in assets under custody. As a central market infrastructure provider, Clearstream offers comprehensive solutions for fund distribution, transaction management, and custody across all asset classes. By connecting market participants such as transfer agents, asset managers, and distribution partners on a single platform, Clearstream ensures efficient operations, quick time-to-market, and personalised customer support. We connect global fund markets and listen to our clients. The result? Tailor-made solutions for everyone in the fund world who wants to use alternative investment funds with ease. 

Optimising data in alternative funds 

Accurate data collection and processing are becoming increasingly essential. While these tasks add value in traditional fund markets, they pose significant challenges in the alternative fund market. Investment data must be meticulously separated and stored down to the end investor level, both on the sales partner and market side. Clearstream addresses this with an interface that facilitates individual and straightforward transaction management for all users. 

Future prospects 

The future landscape of private market investing offers a mix of challenges and opportunities. Clearstream Fund Services is committed to helping asset managers and fund distributors develop innovative solutions to navigate this dynamic environment safely and successfully.

This article was first published by Fonds Professionell Magazine.