D.E. Shaw and Blackstone Alternative Asset Management have joined together to form a new technology company to serve the buyside’s post-trade technology needs.
The new company, Arcesium, will be an independently operated technology and service company that will provide asset managers with software and service solutions. The firm’s first two customers will be D. E. Shaw Group and Blackstone Alternative Asset Management.
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.
“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.”
Arcesium offers traders a 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.
Arcesium’s service offering will 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.
Both D. E. Shaw and BAAM 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.
