Northern Trust Corporation has reached an agreement with Citadel to bring Omnium technology development in-house – including a team of key development professionals as well as software development rights for its Omnium technology platform.
The agreement gives Northern Trust greater control over technological enhancements. Additionally, the transaction enables deeper collaboration between Northern Trust’s operations professionals and the team of developers to provide innovative solutions for alternative fund managers, asset managers, institutional investors and family offices worldwide.
Northern Trust acquired Citadel’s hedge fund administration business (Omnium®) in 2011 and licensed their middle and back office investment technology. That business, now known as Northern Trust Hedge Fund Services, has grown from USD70 billion in assets under administration to more than USD350 billion in assets under administration, across more than 130 clients. Northern Trust Hedge Fund Services has approximately 1,200 employees worldwide.
“We are excited to have the opportunity to bring this technology development team to Northern Trust,” says Peter Cherecwich (pictured), president of Northern Trust Corporate & Institutional Services. “Their deep expertise has been a key contributor to our growth, and has been critical to our success in delivering solutions to our clients – which are among the world’s most sophisticated asset managers and institutional investors.”
Gerald Beeson, Chief Operating Officer of Citadel, says: “Citadel and Northern Trust have transformed the hedge fund administration industry through a combination of operational excellence and Citadel’s world-class technology. This change in our technology relationship with Northern Trust will enable each organisation to better focus on their core strategies as both firms continue to experience significant growth.”
Northern Trust will continue to provide middle office and fund administration services for Citadel’s funds.
Peter Sanchez, CEO of Northern Trust Hedge Fund Services, says: “We look forward to integrating the technology team’s formidable talent directly with our expert operations. This integrated partnership will help us build on our record of innovation and client service.”
The transaction is expected to close in the first half of 2018, subject to customary closing conditions included in the definitive binding agreement executed by the parties.
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