Northern Trust is to transfer its inhouse developed blockchain platform for private equity firms to Broadridge, in an acknowledgement of the ongoing costs in upkeep and the need for an industry-neutral sales and marketing machine.
Initally deployed in 2017 at Swiss asset management firm Unigestion, the hyperldegr platform aims to address efficiency, security and transparency failings in the administration of traditional private equity funds.
The ledger provides real-time insight and transparency to all parties, including the fund managers and investors as well as allowing regulatory access when required. It was developed in concert with Government and regulatory authorities in Guernsey, where the fund is domiciled.
Pete Cherecwich, president of corporate & institutional services, Northern Trust, says: “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.”
Broadridge has form in the blockchain space, including a proxy vote pilot in conjunction with Northern Trust and other institutions, and a bilateral repurchase solution pilot.
Following the agreement, Broadridge says it will further develop the platform to provide data and analytics tools connecting the complex PE lifecycle for all market participants.
Initially the system will be made available to all PE funds domiciled in Guernsey and Delaware, including those administered by Northern Trust.