Asset servicer Northern Trust has bolstered its front-office capability after finalising the purchase of data management firm Parilux Investment Technology.
The Parilux platform will be integrated with Northern Trust’s internally developed cloud-based web and mobile front-end.
According to the asset servicer, the combination will enable asset owner clients to better aggregate data across multi-asset portfolios.
The move is indicative of asset servicers’ wish to extend their service offerings beyond traditional back office functionality like custody and fund administration, and into front office services like portfolio data analytics.
In addition to the technology integration, the deal will also involve Parilux staff transferring to Northern Trust.
“Amid the pressure for operational alpha and investment-decision efficiency on the part of institutional investors, it’s not enough to simply rely on technology alone,” said Melanie Pickett, head of front office solutions at Northern Trust. “We must combine a market-leading technology solution with deep expertise and a high-touch service model in order to be most effective for our clients.”
Northern Trust made an initial investment in Parilux back in 2018. No financial details related to the acquisition were disclosed.
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