Northern Trust Buys Partnership Accounting Application From HedgeTek To Support Its Hedge Fund Administration Business

NorthernTrust announced has bought HedgeTek, a partnership allocation system developed by Fi Tek, to support its hedge fund administration business. Northern Trust will use HedgeTek for partnership accounting, including U.S. book and tax capabilities, performance fee calculations and investor recordkeeping,

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NorthernTrust announced has bought HedgeTek, a partnership allocation system developed by Fi-Tek, to support its hedge fund administration business.

Northern Trust will use HedgeTek for partnership accounting, including U.S. book and tax capabilities, performance fee calculations and investor recordkeeping, via its Global Fund Services platform.

The bank says the HedgeTek partnership allocation system was developed in co-operation with administrators, hedge fund managers and accounting firms to provide automated partnership book and tax allocations, from transactions to federal tax filings, on a single platform.

“Northern Trust is experiencing strong demand from hedge funds for products and technology solutions to meet the administrative challenges arising from a dynamic institutional investor base and a growing complexity of strategies and structures,” says Rick Wills, Senior Vice President and Head of Northern Trust’s Insurance and Global Fund Services business in North America. “Our goal is to be a global service provider to a global industry. HedgeTek will help to strengthen our capabilities in the U.S. market, where tax regimes and other regulations differ significantly from Europe and other international markets.”

Northern Trust is one of Europe’s largest offshore funds administrators, thanks to its 2005 acquisition of Baring’s Financial Services Group. It has fund administration operations in Chicago, Dublin, Guernsey, London, Luxembourg and Isle ofMan.

In July this year, Northern Trust established a dedicated private equity fund administration team in Dublin for Irish-domiciled funds.

Nadia Ivanova, Senior Vice President and Head of Global Hedge Fund Administration, says Northern Trust chose HedgeTek following an RFP search and extensive testing of the software. “The implementation will enhance operational efficiency and productivity in critical areas of the hedge fund administration process such as automated book and tax allocations, dynamic export and import interfaces with our accounting and reporting engines, contributed property and complex performance fee processing,” she says.

“We are extremely pleased that Northern Trust has selected HedgeTek as their U.S. hedge fund and partnership allocation platform. Northern Trust has a well-earned reputation for technical innovation and a rigorous process in selecting its technology partners,” adds Subir Chatterjee, President and CEO of Fi-Tek.

“This selection is a strong endorsement of HedgeTek’s clear lead in providing innovative solutions to hedge fund administrators, fund managers and accounting firms,” said Barry Mermelstein, COO and head of Fi-Tek’s alternative investments business practice.

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