Hedge fund manager Bridgewater Associates has chosen Northern Trust to independently replicate certain middle and back-office services for its $140 billion in AUM, as it continues to implement its back-office transformation plan.
In a role that will create approximately 100 jobs in Chicago and Stamford, Connecticut, Northern Trust will provide broad middle-office and back-office services including replicating various administrative processing, trade processing, valuation, real-time reporting, cash management, accounting and collateral management services.
These services will be furnished by Northern Trust independently, as well as mirroring and quality checking middle and back-office services provided by another firm. The arrangement is planned to go live in 2014.
“This is a transformational relationship creating independent controls and a new level of review and checks by two independent administrators,” said Peter Sanchez, CEO of Northern Trust Hedge Fund Services.
“As the hedge fund business model evolves, we expect our relationship with Bridgewater will lead the way toward the structure and independent controls that hedge fund investors will demand in the future.”
