Northern Trust Corp. is bringing Citadel’s technology development in-house—including a team of key development professionals as well as software development rights for the technology platform. The agreement, planned to close during the first half of 2018, allows Northern Trust greater control over technology enhancements and enables deeper collaboration between the developers in order to find solutions for alternative fund managers, asset managers, institutional investors, and family offices.
In 2011, Northern Trust acquired Citadel’s hedge fund administration business (Omnium), licensing its middle- and back-office investment technology, which became known as Northern Trust Hedge Fund Services. It grew from $70 billion in assets under administration to more than $350 billion in assets under administration, across more than 130 clients.
“We are excited to have the opportunity to bring this technology development team to Northern Trust,” said Peter Cherecwich, 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, said, “This change in our technology relationship with Northern Trust will enable each organization 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, said, “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.”