Northern Trust Corporation, a Chicago, Illinois-based leading provider of wealth and asset management services, as per recent reports, has announced its agreed-upon decision to transfer its distributed ledger technology (DLT) platform for private equity (PE) asset servicing to Broadridge Financial Solutions, a New York, NY-based global fintech leader.
Broadridge, building on Northern Trust’s patented DLT platform, plans to further develop and expand the solution, enabling new capabilities across the entire PE lifecycle. Furthermore, the NY-based fintech, in its bid to improve efficiency in the market, plans to further develop the platform to extract its full potential to enhance transparency, streamline processes, reduce costs and cut back on manual tasks.
“Northern Trust pioneered the development of blockchain technology that supports the complex PE lifecycle,” states Pete Cherecwich, President – Corporate & Institutional Services, Northern Trust. “For the benefit of our clients and the industry as a whole, it’s now time to hand over the reins to a technology provider with deep fintech expertise. Broadridge’s administrator-agnostic position, coupled with its DLT leadership and global footprint, make them an ideal firm to open up this innovative technology to the marketplace, paving the way for the digitization of the asset class.”
According to Eric Bernstein, Head of Asset Management Solutions, Broadridge, technology is a potential game-changer. “The alternatives/PE marketplace is expanding rapidly and the technology needs of this evolving marketplace are underserved. Broadridge’s unique position as a network enabler and successful record in utilizing blockchain technology will allow us to help transform the private equity industry,” adds Bernstein.
The initial availability of the solution is planned for all PE funds domiciled in Guernsey and Delaware, including the Northern Trust administered funds.