Northern Trust to Transfer Pioneering Private Equity Blockchain Technology Platform to Broadridge
June 26 2019 - 4:00AM
Business Wire
Broadridge to build out the platform to serve
all PE market participants
Broadridge Financial Solutions, Inc. (NYSE:BR) and Northern
Trust (Nasdaq: NTRS) have reached an agreement for Northern Trust
to transfer its distributed ledger technology (DLT) platform for
private equity (PE) asset servicing to Broadridge, marking a
significant step toward delivering an industry-wide PE blockchain
solution.
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Following the agreement, Broadridge will develop the platform
leveraging blockchain technology developed by Northern Trust. The
technology will provide data and analytics tools connecting the
complex PE lifecycle for all market participants. Through the
platform, PE firms can manage, communicate and engage with
investors with greater efficiency. It enhances capital and cash
flow management (capital calls, investments, divestments and
distributions) and automates the middle office functions for
PE.
“The alternatives/PE marketplace is expanding rapidly, and the
technology needs of this evolving marketplace are underserved,”
said Eric Bernstein, Broadridge’s head of asset management
solutions. “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. This is another
example of Broadridge’s commitment to driving the innovation
roadmap for the financial services industry and has the potential
to be a real game changer.”
Initially the solution will be made available to all PE funds
domiciled in Guernsey and Delaware, including those administered by
Northern Trust. Northern Trust’s PE clients will continue to
benefit from the fund administrator’s high-end service and
expertise, with the added benefit of having access to an
industry-leading platform supported by a global leader in financial
technology.
“Northern Trust pioneered the development of blockchain
technology that supports the complex PE lifecycle. The platform
delivers real-time insight and transparency to all parties,
including fund managers, investors and auditors, and enables
regulatory access when required,” said Pete Cherecwich, President
of 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.”
Broadridge plans to further develop and expand the private
equity solution, delivering new capabilities across the lifecycle.
With a focus on increasing efficiency in the market and providing
real business value to clients, this blockchain solution has the
potential to benefit the financial services industry by improving
transparency, streamlining business processes, eliminating manual
reconciliations, and reducing costs. This latest application of
blockchain builds on Broadridge’s series of successful
blockchain/DLT initiatives, including a proxy vote pilot in
conjunction with Northern Trust and other institutions, and a
bilateral repurchase solution pilot.
Northern Trust launched the industry’s first deployment of
blockchain technology for the private equity market in 2017.
Working in partnership with key clients and regulators, Northern
Trust continued to innovate and implement additional capabilities,
including an automated ‘end-to-end’ capital call process, real-time
audit of PE lifecycle events directly from the blockchain, and
deploying legal clauses as smart contracts - streamlining the
traditionally document heavy process. Northern Trust has secured
four U.S. patents for its blockchain innovations.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE:BR), a $4 billion
global Fintech leader and a part of the S&P 500® Index,
provides investor communications and technology-driven solutions to
banks, broker-dealers, asset managers and corporate issuers
globally. Broadridge’s investor communications, securities
processing and managed services solutions help clients reduce their
capital investments in operations infrastructure, allowing them to
increase their focus on core business activities. With over 50
years of experience, Broadridge’s infrastructure underpins proxy
voting services for over 50 percent of public companies and mutual
funds globally, and processes more than $5 trillion in fixed income
and equity trades per day. Broadridge employs approximately 10,000
full-time associates in 18 countries. For more information about
Broadridge, please visit www.broadridge.com.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider
of wealth management, asset servicing, asset management and banking
to corporations, institutions, affluent families and individuals.
Founded in Chicago in 1889, Northern Trust has a global presence
with offices in 20 U.S. states and Washington, D.C., and across 23
locations in Canada, Europe, the Middle East and the Asia-Pacific
region. As of March 31, 2019, Northern Trust had assets under
custody/administration of US$10.9 trillion, and assets under
management of US$1.2 trillion. For more than 125 years, Northern
Trust has earned distinction as an industry leader for exceptional
service, financial expertise, integrity and innovation. Visit
northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust Corporation, Head Office: 50 South La Salle
Street, Chicago, Illinois 60603 U.S.A., incorporated with limited
liability in the U.S. Global legal and regulatory information can
be found at http://www.northerntrust.com/disclosures.
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Media Contacts:
Northern Trust
John O’Connell (US) +1 312 444 2388 John_O’Connell@ntrs.com
Camilla Greene (EMEA & APAC) +44 (0) 20 7982 2176
Camilla_Greene@ntrs.com
Broadridge
Matthew Luongo Prosek Partners mluongo@prosek.com +1
646.818.9279
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