Clearstream Partners with Ares Management to Widen Private Markets Access

§ 01 Executive Snapshot

• What: Clearstream partners with Ares Management to integrate private market strategies into its fund platform.
• Who: Clearstream (part of Deutsche Börse Group) and Ares Management Corporation.
• Why it matters: The partnership aims to democratize access to private market investments and enhance operational efficiencies for fund distributors.

§ 02 Key Developments

• Clearstream will integrate Ares’ private market strategies into its fund platform, facilitating easier access for fund distributors.
• The collaboration is expected to remove operational barriers historically faced by investors in accessing private markets.
• Ares Management will gain access to Clearstream’s extensive distribution network, enhancing its reach to wealth management clients such as private banks and family offices.

§ 03 Strategic Context

• The partnership aligns with the European Union’s Savings and Investment Union (SIU) agenda, which seeks to improve access to productive investments across Europe.
• There is a growing momentum in the financial industry towards democratizing access to private markets, particularly for wealth management clients.

§ 04 Strategic Implications

• This collaboration could lead to significant operational efficiencies across the distribution chain for private market investments.
• The initiative may encourage more wealth managers to incorporate private market assets into diversified portfolios for their clients, potentially increasing demand for such investments.

§ 05 Risks & Constraints

• Potential regulatory challenges in integrating private market investments within existing frameworks across different jurisdictions in the EU.
• Competition from other financial institutions aiming to enhance access to private market investments could influence the effectiveness of this partnership.

§ 06 Watchlist / Forward Signals

• Monitor the rollout of integrated Ares strategies on the Clearstream platform and any subsequent client adoption rates.
• Future developments in EU regulations regarding private market investments could impact the success of this partnership.