FactSet and Arcesium Unite to End Asset Management's Data Silos

NORWALK, Conn. – December 03, 2025 – In a significant move to tackle one of the asset management industry’s most persistent and costly challenges, FactSet and Arcesium have announced a strategic partnership to launch a unified investment management platform. The collaboration promises to seamlessly integrate front, middle, and back-office workflows, creating a single, coherent ecosystem for firms navigating the increasingly complex worlds of public, private, and alternative investments.

This partnership arrives at a critical juncture. Asset managers are grappling with a dual threat: the explosive growth of complex, multi-asset portfolios and the crushing weight of escalating regulatory demands. The new offering aims to provide a definitive solution to the data fragmentation that has long plagued the industry, creating operational bottlenecks and hindering strategic decision-making.

Confronting the 'Single Source of Truth' Problem

For years, asset managers have operated with a patchwork of disparate systems—one for portfolio analytics, another for trade execution, and often several more for accounting, compliance, and reporting. This fragmentation creates data silos, where critical information is inconsistent, difficult to access, and prone to error. The consequences are severe, ranging from inefficient manual reconciliation processes to significant compliance risks.

“Feedback from our clients across the industry consistently highlights data fragmentation as the leading operational challenge facing asset managers today, with some estimates showing that regulatory compliance costs for global asset managers have doubled over the past decade,” said David Mellars, SVP, Senior Director, Middle Office Product Management at FactSet. “This is more than an integration; it’s a shift toward connected capital, where data, technology, and innovation converge to redefine the future of investing.”

The joint solution is engineered to dismantle these silos. By combining FactSet's formidable front and middle-office analytics and portfolio management tools with Arcesium's robust, cloud-native back-office technology, the platform establishes a single source of truth. It integrates core functions like the Investment Book of Record (IBOR) for a real-time view of positions and the Accounting Book of Record (ABOR) for accurate, auditable financial data. This unified data layer, powered by integrated analytics engines and AI-driven workflows, allows teams to ingest, model, and analyze diverse asset types within one consistent framework.

Navigating the New Multi-Asset Landscape

The technological need for such a platform is driven by a profound shift in market dynamics. Capital is flowing aggressively into private markets, forcing asset managers who once focused primarily on public equities and bonds to become multi-asset specialists. Private credit, in particular, has become a dominant force. According to FactSet data, fundraising in the sector climbed from $198 billion in 2023 to $210 billion in 2024, with an additional $124 billion raised in just the first half of 2025.

This migration of capital presents a significant operational challenge. Illiquid and bespoke assets common in private markets do not fit neatly into the workflows designed for publicly traded securities. Valuations are more complex, data is less standardized, and reporting requirements are different. The FactSet-Arcesium platform is purpose-built to address this reality, providing the tools to manage public, private, and alternative assets with equal facility. This capability is crucial in a market where competition is intensifying, as evidenced by FactSet data showing that mega-managers—representing less than 3% of firms—now secure 46% of all capital raised.

For pension funds, family offices, and hedge funds, the ability to seamlessly manage a holistic, multi-asset portfolio is no longer a luxury but a competitive necessity. A unified platform provides the agility needed to allocate capital effectively and manage risk across the entire portfolio, rather than in isolated segments.

A Crowded Field: Integration vs. Incumbency

FactSet and Arcesium are entering a competitive space populated by established giants. BlackRock’s Aladdin platform has long been the dominant force, offering a comprehensive “operating system” for investment managers. Other key players, including SimCorp Dimension and Charles River Development, also provide powerful, integrated front-to-back solutions. However, the new partnership seeks to differentiate itself through its specific focus and architecture.

While competitors offer broad solutions, the FactSet-Arcesium offering is explicitly framed as a purpose-built answer to the multi-asset challenge, with a deep-seated capability for private and alternative investments. The partnership leverages the specialized strengths of two industry leaders: FactSet's deep expertise in financial data and front-office analytics, and Arcesium’s modern, cloud-native platform born out of the sophisticated needs of the D. E. Shaw group. This combination of best-in-class specialists presents a compelling alternative to single-vendor, monolithic systems.

The value of this integration has already been recognized by early adopters. “Integrating Arcesium's comprehensive post-trade platform with FactSet's robust investment analytics has significantly enhanced our operational efficiency,” commented Neal J. Wilson, Co-Chief Executive Officer and Co-Chief Investment Officer at EJF Capital. “This seamless integration allows us to streamline portfolio management, improve performance analytics workflows, and make more informed investment decisions.”

“By combining Arcesium's deep operational and data management capabilities... with FactSet's comprehensive front-office suite, we are delivering a truly holistic and future-proof solution,” added Mahesh Narayan, SVP, Head of Commercial Partnerships at Arcesium.

The Road Ahead: Adoption and Industry Impact

While the promise of a unified platform is powerful, the path to adoption is not without hurdles. The cost of implementation, the complexity of migrating from legacy systems, and the organizational change required to adapt workflows are significant considerations for any firm. Asset managers will need to weigh these short-term challenges against the long-term return on investment.

The potential benefits are substantial. Beyond mitigating regulatory risk and reducing the operational costs associated with manual processes, a truly integrated platform unlocks strategic value. It provides the clean, consistent data necessary to deploy advanced AI and machine learning models for deeper insights and predictive analytics—capabilities that are often stymied by fragmented data environments. By automating workflows and providing a single, comprehensive view of risk and exposure, the solution empowers firms to operate with greater speed, transparency, and intelligence.

Ultimately, the partnership between FactSet and Arcesium is more than just a new product launch; it is a clear indicator of the asset management industry's future trajectory. The era of siloed operations and fragmented data is drawing to a close, replaced by a demand for connected, agile, and data-centric ecosystems capable of mastering the full spectrum of modern investing. The success of this venture will depend on its ability to deliver on its ambitious promise to finally connect the entire investment lifecycle.