In the first commercial implementation of blockchain technology for the private equity market, Northern Trust has collaborated with IBM to solve the problem of increasing transparency, efficiency and security in private equity administration.
The solution, a security-rich blockchain-based system, provides real-time insight to all parties, and has been designed to follow local regulations. It’s currently being used for administration of Geneva, Switzerland-based Unigestion, an asset manager with $20 billion in assets under management.
The private equity field has been historically slow to innovate, and both parties are confident that this collaborative solution will be a breakthrough. “Blockchain is an ideal technology to bring innovation to the private equity market,” says Bridget Van Kralingen, senior vice president, IBM Industry Platforms.
“This is an important first step to connecting participants much more effectively, including investors, managers, administrators, regulators, advisors, and auditors,” says Justin Chapman, global head of market advocacy and research at Northern Trust.
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Treating regulators as partners is an essential part of innovating in this sector. Over at the THINK blog, IBM VP and Global Partner Financial Markets Kevin Pleiter offers insights on how this collaboration has the potential to transform the industry.