In collaboration with IBM and other stakeholders, Northern Trust has launched the first commercial deployment of blockchain technology for the private equity market.
Northern Trust and IBM have constructed a security-rich blockchain, or distributed ledger solution, based on the Hyperledger Fabric. It is available for use for managing the administration of a private equity fund managed by Unigestion, a Geneva based asset manager with $20 billion in assets under management.
Northern Trust worked with Unigestion to create an innovative private equity ecosystem designed to deliver increased efficiency, security and transparency, all of which are longstanding challenges.
Real Time Insight
While private equity returns can be attractive, the infrastructure supporting private equity has seen little innovation in recent years at a time when investors are seeking greater transparency, security and efficiency.
The blockchain network provides real-time insight and transparency to all parties, including the fund managers and investors as well as allowing regulatory access when required.
Transparent Platform
Importantly, the blockchain network has been designed to support compliance with current, local regulations. Both government and regulator were kept informed during the development process.
The blockchain solution allows the fund to transfer ownership stakes and be managed, serviced and audited throughout the investment lifecycle on a transparent platform offering «one version of the truth» to participants who gain access via secured means.
Initially, Northern Trust will make the solution available to clients on a selective basis.
