Northern Trust selected by $13 billion hedge fund manager as administrator

Northern Trust's technology launches have been focused on providing added transparency and enhancing investor experience for hedge funds.

By Joe Parsons

Northern Trust’s hedge fund services division has been chosen by one of the top US hedge funds to provide full middle-and back-office fund administration.

Magnetar Capital, an Illinois-based $13.1 billion multi-strategy alternative asset manager, selected Northern Trust in order to provide operational support for its complex strategies.

“Given the volume and intricacy of our strategies, we needed a partner that could evolve alongside our operational demands and support a wide array of investor services,” said Ernie Rogers, COO and CFO, Magnetar Capital.

Northern Trust has made a number of significant technological enhancements to its hedge fund services unit, following the integration of Citadel’s technology team in 2018. Its most recent tech launch was a new reconciliation dashboard for its hedge fund clients, giving them a real-time view of breaks and reconciliations in trade activity.

Its other technology launches have been focused on providing added transparency and enhancing investor experience.

“In this fast-paced market, fund managers need innovative solutions that support their growth and fit their company’s needs now and in the future,” said Jeff Boyd, CEO, Northern Trust Hedge Fund Services.

“We are thrilled to be able to work with Magnetar Capital, offering client tailored services to support their evolving needs. Northern Trust brings an industry-leading technology platform, transparency tools and expertise to help our clients excel in a complex and rapidly changing marketplace.”

Northern Trust administers more than $1 trillion of alternative assets, and its flagship Omnium platform provides integrated middle-office services from the point of trade capture all the way to investor statements, around a single book of records.