Northern Trust has selected HedgeTek, a leading edge partnership allocation system created by Fi-Tek LLC, to support a strategic expansion of fund administration and related services to United States-based hedge funds and global investment managers.
Northern Trust will deploy HedgeTek for partnership accounting, including U.S. book and tax capabilities, performance fee calculations and investor recordkeeping, to enhance its Global Fund Services platform. The HedgeTek partnership allocation system was developed in cooperation with administrators, hedge fund managers and accounting firms to provide straight-through 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 selected HedgeTek following an RFP search and extensive model office testing of the software,” says Nadia Ivanova, Senior Vice President and Head of Global Hedge Fund Administration, Northern Trust. “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.”
“We are extremely pleased that Northern Trust has selected HedgeTek as their U.S. hedge fund and partnership allocation platform,” says Subir Chatterjee, President and CEO of Fi-Tek. “Northern Trust has a well-earned reputation for technical innovation and a rigorous process in selecting its technology partners.”
“This selection is a strong endorsement of HedgeTek’s clear lead in providing innovative solutions to hedge fund administrators, fund managers and accounting firms,” says Barry Mermelstein, COO and head of Fi-Tek’s alternative investments business practice.