Private credit market is undergoing a significant transformation, driven by investor demand and evolving fund administration needs. In March 2025, Lazard and Deutsche Bank signaled a strategic pivot toward expanding their private credit capabilities, underlining a broader trend among global financial institutions.
DWS, the asset management arm of Deutsche Bank, entered into a strategic cooperation with its parent company to tap into private credit origination and investment opportunities. This collaboration grants DWS preferential access to asset-based finance, direct lending, and other private credit opportunities originated by Deutsche Bank. Stefan Hoops, CEO of DWS, emphasized the importance of private credit in delivering real-economy investments to clients.
Lazard, a renowned financial advisory and asset management firm, has also stepped up its private credit involvement by partnering with Arini Capital Management. This partnership focuses on direct lending across Europe, the Middle East, and Africa (EMEA). Jean-Louis Girodolle, Lazard’s co-head of European investment banking, noted that private capital growth is crucial for the firm’s European clientele. Arini’s founder, Hamza Lemssouguer, highlighted the increasing convergence between public and private credit markets, a trend they believe will continue to gain momentum.
Surge in Strategic Acquisitions and Technology Investments
The movement by Lazard and Deutsche Bank reflects a wider strategy among major financial institutions to strengthen their foothold in private credit. Charly Guyot, global head of loan solutions at BNP Paribas Securities Services, noted that scalable and efficient solutions are key to supporting expansion in this space. BNP Paribas has been proactive, making strategic acquisitions and investing in advanced technology stacks to meet evolving client needs.
BNP Paribas’ client-facing platform, Caplink Private, aggregates data from multiple sources to offer a unified, real-time view of the private debt market. This platform enhances operational efficiency and delivers actionable insights, improving decision-making for investors navigating a fragmented data landscape.
Data Complexity: A Central Challenge
A survey conducted by Pascal Hernalsteen for Accelex and FactSet sheds light on the operational hurdles in private capital servicing. The findings revealed that 55% of fund administrators cited data acquisition and governance as their top challenges. Concerns around data availability, accuracy, and timeliness are becoming more pressing due to the increasing intricacy of fund structures and expanding regulatory requirements.
Private credit structures often involve bespoke features such as covenants, multi-tiered loan tranches, and floating interest rates. These elements necessitate meticulous tracking and regular updates, adding layers of complexity to fund administration. With interest rate fluctuations and changes in borrower creditworthiness, administrators must maintain current and accurate loan-level data to ensure compliance and performance monitoring.
The Impact of Retail Investor Access
The private capital landscape is also being reshaped by the inclusion of retail investors. The move to democratize private market access introduces new scale and complexity. For example, BlackRock has developed a customizable model portfolio through a Unified Managed Account (UMA), enabling investors to access both public and private markets. This strategy increases the number of smaller ticket investments, further amplifying data volume and complexity.
The Accelex and FactSet report underscores that this shift demands operational scalability and refined data management. Fund administrators are required to evolve their infrastructures to handle the influx of diverse investors and data points without compromising service quality.
AI: A Game-Changer in Private Market Operations
Artificial Intelligence (AI) is emerging as a vital tool in addressing the data challenges within private markets. BNP Paribas’ partnership with Mistral AI exemplifies how leading institutions are integrating AI to transform operations. The bank’s investment in AI-driven systems enables the processing of unstructured data from multiple sources, facilitating consistency and accuracy at scale.
Charly Guyot noted that these advancements enhance data accessibility, validation, and anomaly detection—all critical for minimizing risks and enabling informed decision-making. By leveraging AI, institutions can automate data acquisition and ensure near real-time updates, which are essential for tracking complex instruments in private credit.
Guyot highlighted that long-term investment in infrastructure is crucial, not only for meeting current demands but also for future-proofing operations. BNP Paribas has taken a proactive approach, combining internal systems with fintech partnerships to offer cutting-edge solutions tailored to alternative investors.
Talent Transformation and Workforce Development
As fund administrators scale operations to accommodate growing investor bases and complex products, talent shortages have become increasingly apparent. The survey by Accelex and FactSet pointed out the critical need for skilled client-facing professionals with expertise in data science, coding, and automation.
Guyot emphasized that the future of finance lies in building teams that can automate processes and transform raw data into strategic intelligence. As such, firms are investing in workforce development programs to retain top talent and equip employees with the technical skills necessary for the digital era.
The evolving nature of private capital servicing demands cross-functional teams capable of bridging the gap between traditional financial expertise and modern data-driven practices. This shift not only improves operational resilience but also ensures that firms can maintain a competitive edge in a rapidly changing market.
Scalability and the Future of Private Capital Servicing
Scalability has become a central objective for firms operating in private markets. As assets under administration grow and client bases diversify, the ability to scale efficiently without compromising accuracy or service quality is paramount.
According to the Accelex and FactSet report, scalability often exposes underlying talent gaps and operational inefficiencies. The report recommends that firms invest in technology, workforce development, and process automation to support sustainable growth.
The convergence of technological innovation, regulatory evolution, and investor demand has placed the private capital servicing industry at a pivotal crossroads. Institutions that successfully navigate this landscape will be those that prioritize digital transformation, operational excellence, and client-centric innovation.
Frequently Asked Questions
What key partnerships have emerged?
DWS–Deutsche Bank and Lazard–Arini formed alliances to grow in private credit.
These highlight strategic moves by major institutions.
What are the biggest challenges?
Data acquisition, accuracy, and governance are major pain points.
Complex fund structures and regulations add to the strain.
How are firms solving data issues?
AI and fintech tools are streamlining and automating data processes.
Digital platforms improve visibility and control.
How does AI help?
It automates unstructured data handling and ensures accuracy.
AI also detects errors and speeds up reporting.
How is retail access changing the space?
Retail investors bring more transactions and data volume.
Firms need scalable systems to manage efficiently.
Why is scalability crucial?
Private markets are growing rapidly across asset types.
Scalable tech ensures firms can meet demand and stay competitive.
What role does tech play in success?
It enables real-time insights and operational efficiency.
Tech adoption is a major advantage in servicing private assets.
What skills are needed now in the industry?
Data science and coding are essential alongside financial expertise.
Modern finance teams blend tech and investment skills.
Conclusion
The private credit market is no longer a niche segment; it is rapidly becoming a central pillar of institutional and retail investment strategies. Strategic partnerships like those between Lazard-Arini and DWS-Deutsche Bank reflect the growing appetite for exposure to this asset class.
