The D. E. Shaw group, an investment and technology development firm, and Blackstone Alternative Asset Management (BAAM) have launched Arcesium, a new technology company that will provide asset managers with software and service solutions for their post-trade activities.
Arcesium’s fully hosted technology platform offers asset managers sophisticated post-trade support for the various activities of the trade lifecycle — including security master maintenance, trade capture, asset servicing, treasury functions, pricing-related services, and portfolio data warehousing — in a highly automated and secure manner.
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Arcesium’s service offering complements its technology platform with robust, exception-driven processes that effectively balance efficiency and control. The platform, which was refined by the D. E. Shaw group over many years, is able to address a wide array of asset classes, fund structures, collateral, and pricing methodologies, as well as a large number of trading venues and counterparties.
Arcesium’s software and service offerings can be integrated with the systems of other service providers its clients may use, including those of industry-leading fund administrators.
Arcesium’s initial clients, the D. E. Shaw group and BAAM, both will use the company’s software and service capabilities, with the first BAAM fund moving onto the platform this spring. Later in the year, Arcesium will offer its solutions to additional clients.
The new company is launching with over 300 technology, accounting, and operations staff and is expected to grow to over 400 staff in its New York and Hyderabad offices by the end of 2015.
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By GlobalData"We are excited to launch Arcesium with the D. E. Shaw group and Blackstone as our first clients, and we expect to be servicing over $40 billion in assets by the summer," said Gaurav Suri, Arcesium CEO, who has been head of information technology and software development for the D. E. Shaw group.
"A key step in our development of this business was the decision to operate it independently from the D. E. Shaw group, and having Blackstone join us as a business partner and early client helps us realize this goal. Arcesium will also benefit tremendously from Blackstone’s market knowledge and deep industry relationships."
"Over more than 25 years, the D. E. Shaw group has assembled an exceptional technology and operational team and built what we believe is world-class infrastructure to support our investment activities," said Anne Dinning, managing director and member of the Executive Committee of the D. E. Shaw group. "The firm has a long history of developing and spinning out successful technology-enabled businesses. We expect the talented Arcesium team to succeed in attracting and satisfying new clients while continuing to provide our funds excellent service."
"The tremendous resources, depth of expertise, and innovative technology of the D. E. Shaw group made a strategic relationship around Arcesium very attractive to us," said J. Tomilson Hill, Vice Chairman of the Blackstone Group and President and CEO of Blackstone Alternative Asset Management.
"As the world’s largest provider of hedge fund solutions, with investors who include many of the world’s leading institutions, we understand the needs of fund managers and their investors. We believe Arcesium will support the effective management of our funds and provide us with solutions superior to those offered by other providers in the marketplace."
