Asset Servicing, Defined Benefit, Endowments/Foundations, Governance, Institutional Investors, Insurance Companies, Pension Funds, Public Funds

NT Takes Stake in Tech Firm to Drive Asset-Owner Services

Northern Trust is taking a minority stake in Parilux Investment Technology, representing a key step in the development of its Front Office Solutions business, which the bank is constructing to deliver operational and technology services to in-house institutional investment teams. The business is focused on supporting the investment teams of endowments, foundations, corporations, family offices and other sophisticated asset owners.

The agreement with Parilux marks a milestone in NT’s development of its Front Office Solutions business. Its next step will be to work with beta clients, according to an NT spokesman. It expects to have its first beta client before the close of the quarter, with more to follow, the spokesman said. He said no more details on the transaction were available.

Edison, N.J.-based based Parilux markets software that facilitates integrated data management and delivers a range of information and functionality, including investment book of record (IBOR), accounting and risk analytics for alternative assets, as well as performance reporting and document management, according to a release from NT announcing the agreement.

Front Office Solutions will combine Parilux’s software with a proprietary cloud-based web and mobile interface. In addition, Northern Trust will bring operational expertise and service to deliver capabilities across data aggregation, data enhancement and data analytics to support clients in their investment execution, according to the release.

“This investment is a strategic partnership for Northern Trust and a sign of our commitment to technology innovation that enables investment transparency for global asset owners,” Pete Cherecwich, president of Northern Trust Corporate & Institutional Services, stated in the release.

Melanie Pickett, Head of Front Office Solutions, Northern Trust

The Front Office Solutions unit is led by Melanie Pickett, who joined Northern Trust in 2017 from Emory Investment Management, an endowment fund sponsor owned by Emory University.  Pickett has nearly 20 years of experience in a variety of senior operations and technology roles. For the past year, she has worked with NT’s Client and Partner Experience lab to design and build the solution.

“As asset owners engage in more complex, data-driven approaches to asset allocation, their operational needs and demands for high-quality data have skyrocketed,” Pickett stated in the release.  She added: “By providing a holistic, full-service solution that delivers a more comprehensive set of operational services and analytics, Front Office Solutions aims to empower in-house investment teams and support their important mission.”

Mark D’Andrea, managing partner and CEO of Parilux, said: “We are excited to be partnering with Northern Trust in this next chapter of our growth. Our technology is a holistic solution, built to serve the demanding needs of both the investment professionals and the operations staff of asset allocators. Northern Trust’s innovative solution will combine our superior data model and analytics with flexible, client centric reporting and data visualizations in a full-service solution for institutional investors and family offices.”

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