Northern Trust Launches Hedge Fund Services Biz with Acquisition
May 16, 2011 (PLANSPONSOR.com) - Northern Trust has reached an agreement to acquire hedge fund administrator Omnium LLC.
According to the announcement, Omnium has approximately $70 billion in assets under administration. The acquisition, subject to applicable regulatory approvals and other customary closing conditions, is anticipated to close in the third quarter of 2011.
The press release notes that, “supported by Northern Trust’s global presence, asset servicing capabilities and financial strength, Omnium’s expert staff will utilize market leading technology and be integrated into Northern Trust’s Corporate & Institutional Services business unit as Northern Trust Hedge Fund Services, LLC”.
Northern Trust Hedge Fund Services will offer scalable technology and dedicated expertise to serve hedge funds and large institutional investors with complex portfolios. The business will provide comprehensive administrative and middle office services including trade processing, valuation, real-time reporting, cash management, accounting, collateral management and investor servicing.
“In today’s markets, asset managers and institutional investors demand high performance, greater transparency, and outstanding technology from their administrator,” Northern Trust Chairman and Chief Executive Officer Frederick H. Waddell said in announcing the move. “This acquisition brings together the best in hedge fund administration expertise, along with Northern Trust’s robust global custody capabilities and our highly respected client focus. The result is a unique opportunity to scale a world-class business.”
Established in 2007 by Citadel LLC, Omnium provides “technology-driven hedge fund administration services”, including capabilities around middle-office support, transparent access to data allowing real-time monitoring, and support for high volume and highly complex investment strategies. Omnium is headquartered in Chicago, with operations in New York, Hong Kong and Bermuda.
“The hedge fund industry has changed rapidly in the past five years, driving the need for increasingly sophisticated solutions,” said Northern Trust Corporate & Institutional Services President Steven L. Fradkin. “Northern Trust Hedge Fund Services will help clients in a wide variety of asset classes that require a high level of automation and expert operational support and effective risk management.”