Clearstream has announced the launch of a digital tool for private market fund processing and distribution for wealth management firms.

The solution, which is being introduced with selected clients before full rollout, aims to streamline traditionally manual processes to improve efficiency and transparency for fund providers and distributers.

It leverages digital capabilities through its distributed ledger technology (DLT)-based platform FundsDLT and is integrated with Clearstream’s Vestima fund platform.

Clearstream said the digital tool addressed the growing complexity of private market fund distribution by automating key processes.

It provides anonymised insights into investor portfolios, seeking to enable improved operational transparency in the distribution chain, and consolidates multiple investor portfolios under one Clearstream account.

Clearstream stated that the ability to digitally aggregate and disaggregate investor portfolios simplifies order routing, capital call management, and asset servicing, while integration with back-end systems automates the exchange of information.

Meanwhile, for asset managers, the tool aims to simplify the management of fund issuance and regulatory controls, offering tracking and reporting of investments and transactions.

The enhanced automation allows fund managers and general partners to streamline distribution towards distributors and wealth managers.

“Our digital solution sets new standards for transparency and efficiency in private market fund distribution,” commented Clearstream Fund Services CEO, Philippe Seyll.

“By extending Clearstream’s B2B ecosystem to be more like a B2B2C model, we ensure broader accessibility and operational efficiency.

“We are committed to supporting asset managers in their growth and connecting them with a broad network of wealth management professionals.”

Clearstream Fund Services head of digital and FundsDLT CEO, Olivier Portenseigne, added: “This solution is a game-changer for fund providers and distributors.

"Designed to be inclusive and comprehensive, it empowers them with advanced capabilities for tracking and reporting investments and transactions, unlocking new distribution opportunities in wealth management while reducing costs and complexity.”

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