In response to increased demand for outsourced alternative asset administration, Northern Trust has enhanced its private equity support with the launch of its capital call execution service.
The service allows clients to gain operational efficiencies by outsourcing the processing of capital calls. Capital calls are periodically issued by general partners to their clients and require investors, upon demand, to transfer a previously agreed upon amount to fund strategic investments.
Intended for portfolios with more than 20 private equity investments, clients notify Northern Trust of the initial capital call via the automated Trade Order Entry system. Northern Trust then handles all subsequent capital call payments directly with the private equity general partners, either based on standing direction or individually based on client approval.
“As our clients have invested more heavily in alternative assets, we have sought ways to make their processes more efficient,” said Pete Cherecwich, Americas head of Corporate & Institutional Services at Northern Trust. “By taking the tasks associated with capital calls out of their hands and automating the process, we have freed them to focus on the investment decisions rather than the administrative tasks.”
