Activity

Clearstream, Deutsche Börse Group’s post-trade services provider, is making a significant push to expand its footprint in private market assets. This strategic focus is driven by the growing appeal of private markets for investors seeking diversification, higher potential returns, and access to unique investment opportunities.
Here’s how Clearstream is targeting this growth:
1. Digital Solutions and Automation (Leveraging DLT):
* Partnership with Azimut: A key recent development (announced June 4, 2025) is the collaboration with Azimut, a global asset manager specializing in private and public markets. They are jointly developing a new digital solution specifically for private market funds.
* Extension of Vestima: This new solution will be an extension of Clearstream’s existing automated fund processing platform, Vestima, which already supports a substantial volume of alternative and private assets.
* FundsDLT Technology: The initiative leverages Clearstream’s distributed ledger technology (DLT) platform, FundsDLT (which Clearstream acquired in late 2023). FundsDLT is designed to streamline the distribution and execution of private market products by automating processes, reducing costs, and providing wider access to a fund repository.
* Enhanced Transparency and Efficiency: The digital solution aims to address key challenges in private markets, such as fragmented workflows, manual data entry, and inconsistent reporting. It promises greater transparency through detailed, regular reporting and asset servicing.
* New Account Model: The solution introduces a new account model that allows for accessing multiple investor portfolios under a single Clearstream Custody account, which is particularly beneficial for wealth managers and their clients.
2. Broadening Access and Distribution:
* Addressing Illiquidity: A major goal is to provide broader access to private market strategies and offer liquidity options that allow investors to unlock the “illiquidity premium” embedded in private asset portfolios.
* Targeting Wealth Management Channels: Clearstream recognizes the increasing appetite from wealth managers to access private markets. The new digital infrastructure is designed to be optimized for high-volume, “retail-like” distribution, streamlining onboarding, capital calls, and lock-in period management.
* Partnership with iCapital: Clearstream has an extended partnership with iCapital, a fintech platform that powers the alternative investment marketplace for wealth management. This collaboration makes a broad menu of private market investment opportunities from leading asset managers accessible via Clearstream’s Fund Centre and Vestima platforms.
* Focus on ELTIFs: Clearstream has already seen substantial growth in European Long-Term Investment Funds (ELTIFs) on its Vestima platform, with AuM growing significantly since 2021. ELTIFs are a prime example of regulatory changes harmonizing the approach to private market funds and facilitating access for retail investors.
3. Enhancing Post-Trade Ecosystem:
* One-Stop-Shop Solution: Through strategic acquisitions (like Kneip and the merger of Swisscanto Funds Centre and UBS Fondcenter) and continuous development of its Vestima franchise, Clearstream aims to offer a comprehensive “one-stop-shop” solution for fund services, covering distribution, order execution, processing, asset servicing, and data management.
* Automation and Optimization: Clearstream is focused on reducing operational complexity and cost efficiency through automation. This includes suggesting potential collateral matches using AI and enabling automated realignment of assets between its ICSD and T2S for optimized collateral use.
* Streamlined Onboarding: Clearstream has implemented APIs with partners like BBH to automate account opening requests, reducing manual processing risks and improving the efficiency of the onboarding experience for investors.
4. Strategic Importance:
* Top Priority: Samuel Riley, chief executive of Clearstream Securities Services, has explicitly stated that private market assets are the top priority for the firm’s funds business. This indicates a strong commitment at the highest levels of the organization.
* Meeting Market Needs: Clearstream aims to meet the demand from investors for more transparent and cost-efficient access to private market opportunities, integrated with their existing investment channels.
By combining digital innovation, strategic partnerships, and a focus on streamlining operations, Clearstream is positioning itself to be a leading infrastructure provider for the growing private market sector, making these complex assets more accessible and efficient for a wider range of investors.

Video courtesy of IPO-VID In Patrick’s Opinion

Video courtesy of IPO-VID In Patrick’s Opinion