Digitizing Private Markets

“For too long, private markets have depended on legacy systems. Now is the time to digitize,” says Philippe Seyll. As CEO of Clearstream Fund Services, Seyll is at the forefront of redefining operational standards for private market funds.

“Asset managers have traditionally relied on manual processes to handle private market products,” Seyll explains. “These methods may have been sufficient for a narrow institutional distribution model, but they quickly become a barrier when scaling to new channels or higher volumes.” With increasing investor demand and evolving distribution models, the need for automation and efficiency has become critical. “Digitization is no longer optional—it’s a strategic necessity,” he states.

Overcoming operational challenges in private markets funds

The operational friction in private market funds is well known. “We still see outdated tools like fax and email being used,” Seyll says. “Managing lock-up periods manually, or sending capital call notices by email—this introduces errors and delays, especially when volumes rise.” Clearstream’s approach has been to identify and resolve these pain points. “Fund managers need accurate, timely views of portfolio-level activity,” he adds. “That requires technology, not spreadsheets.”

Addressing operational hurdles

Enhancing transparency and asset servicing

Clearstream, part of Deutsche Börse Group, has developed a digital solution tailored to transform the entire processing and distribution lifecycle of private market funds.

“Our solution replaces inefficient manual processes and helps reach new distribution networks,” Seyll explains. “It’s about increasing transparency, improving accuracy, and giving both fund providers and distributors the tools to operate at scale.”

Automation plays a pivotal role. “It simplifies regulatory compliance, supports clean fund issuance, and enables better transaction tracking,” he says. The platform also includes key features like anonymous end-investor recordkeeping, automated lock-up period oversight, and structured capital call workflows.

Leveraging technology via Vestima Digital

The foundation of Clearstream’s innovation is Vestima Digital, which integrates FundsDLT blockchain-based technology into Clearstream’s well-established Vestima platform.“Vestima already provides order routing, settlement, asset servicing, and reporting,” says Seyll. “With the digital extension, we’ve created a comprehensive infrastructure for both buy-side and sell-side participants.”

The service allows asset managers to manage multiple investor portfolios under a single custody account, reducing the operational burden on distributors and improving back-office performance.“It’s designed for institutions seeking better order processing, accurate reporting, efficient capital calls, and transparency at investor level,” he emphasizes.

Powering the future of private markets

Clearstream’s global network is a major asset in driving this transformation. “We’re uniquely positioned to help accelerate digital distribution across the wealth management space,”Seyll notes. “Our infrastructure brings the scale, trust, and resilience needed to support industry-wide adoption.”

The road ahead

“Automation is revolutionizing how private market funds are managed and distributed,” Seyll concludes. “By embracing digital, managers can improve compliance, boost accessibility, and engage investors more effectively. These are not incremental changes—they are essential steps toward a modern, competitive private markets ecosystem.”

More information: Clearstream Private Market Solutions. https://www.clearstream.com/clearstream-en/funds-services/fund-centre/solutions/privatemarket

This article first appeared on Paperjam website on 27.06.2025.