The Clearstream partnership provides Neuberger Berman with the flexibility to adapt to market demands by enabling them to scale their services in response to interest in private market allocations shown by distributors across geographical markets.
By leveraging Clearstream’s distribution, custody, and transaction services, Neuberger Berman can meet this demand from “investors looking to access these strategies whilst significantly reducing internal costs and time and allowing the company to concentrate on core competencies.”
Clearstream provided operational support and “guidance on channel strategy, product setup, and distribution governance.”
Moreover, Clearstream managed administrative tasks such “as contract management, trailer fee management, and compliance with Anti-Money Laundering (AML), Know Your Customer (KYC), and Know Your Distributor (KYD) regulations.”
José Cosio, Head of Intermediary Global ex US said:
“Private market investments offer diversified returns that have the potential to not only improve institutional portfolios”. However, they also present challenges in terms of illiquidity, complex fund structures, and lower transparency compared to traditional listed asset funds. Through Clearstream’s reliable, robust, and fully integrated fund ecosystem, the operational aspects of investing in private assets are simplified. In this way, we are able to offer a comparable investor experience in terms of product attributes as for traditional products. Clearstream is our partner of choice for cost-effective and efficient private market fund operations and administration, ensuring optimal return on investment for our clients.”
Clearstream offers a solution for private market funds, “addressing both execution and distribution aspects.”
Their Vestima platform provides execution capabilities “for all fund types, with over €300 billion in assets under custody (AuC) in private markets funds alone.”
Additionally, they are offering the option for “an interlink to their FundsDLT platform, allowing for step-change improvements to operational efficiency for private market funds in the medium to long-term.”
On the distribution side, they offer a “network for both traditional and private market assets.”
They claim to have “resolved operational challenges for numerous large GPs, enabling them to become more efficient and focus on their core business.”
As noted in the update, Neuberger Berman, founded in 1939, is “a private, independent, employee-owned investment manager.”
The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on “behalf of institutions, advisors and individual investors globally.”
With offices in 26 countries, Neuberger Berman’s team reportedly has “over 2,600 professionals.”