The €1trn asset manager Northern Trust is to transfer its blockchain technology platform for private equity to US fintech firm Broadridge.
In a joint statement, the parties said Broadridge would further develop the distributed ledger technology, which provides data and analytics tools connecting all stages of private equity across all market participants.
According to Northern Trust and Broadridge, the platform would enhance capital and cash flow management including capital calls, investments, divestments and distributions, as well as automating middle-office functions.
“Our unique position as a network enabler, and our successful record in utilising blockchain technology, will allow us to help transform the private equity industry,” said Eric Bernstein, head of asset management at Broadridge.
The companies said that the platform would be made available initially to all private equity funds domiciled in Guernsey and Delaware, including those administered by Northern Trust.
Pete Cherecwich, Northern Trust’s president for corporate and institutional services, said the platform delivered “real-time insight and transparency to all parties, including fund managers, investors and auditors, and enabled regulatory access when required”.
Broadridge said it wanted to develop new capabilities across the private equity lifecycle, and said the technology had the potential to improve transparency, streamline business processes, eliminate manual reconciliations and reduce costs.
Northern Trust launched the blockchain technology for the private equity market in 2017. It said it had developed capabilities such as an automated ‘end-to-end’ capital call process, real-time audit of lifecycle events and deploying legal clauses as smart contracts, streamlining the traditionally document-heavy process.