Broadridge takes over Northern Trust’s PE DLT platform
Northern Trust has agreed to transfer its distributed ledger technology (DLT) platform for private equity (PE) asset servicing to Broadridge Financial Solutions, Jane Connolly reports.
Building on the blockchain technology developed by Northern Trust, which has secured four patents for its innovations, Broadridge plans to develop and expand the solution by adding new capabilities across the PE lifecycle.
The fintech will focus on improving efficiency in the market by developing the platform’s 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,” says Pete Cherecwich, president of corporate and institutional services at 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 digitisation of the asset class.”
Eric Bernstein, head of asset management solutions at Broadridge, says the technology is a potential game-changer.
He adds: “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 utilising blockchain technology, will allow us to help transform the private equity industry.”
The solution will initially be available to all PE funds domiciled in Guernsey and Delaware, including those administered by Northern Trust.