View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
February 22, 2017

IBM links up with asset manager to bring blockchain to private equity market

There are big plans for blockchain in banking, and private equity is set to be next.

By Tom Ball

IBM has joined up with asset manager Northern Trust Corporation to bring blockchain technology to the private equity market.

The initiative is in response to the low level of innovation behind private equity businesses, a problematic issue in the modern world in which security, efficiency and transparency are key motivators for investment.

The tie-up between IBM and Northern Trust will see blockchain tech used in the  administration of a private equity fund managed by Unigestion, a Geneva-based asset manager with $20 billion under management.

At the core of this roll-out is IBM’s Hyperledger Fabric, an open source blockchain technology that can leverage technologies to provide a base architecture for enterprise networks. The software also allows for the implementation of cryptographic algorithms and consensus protocols.

The design of the technology means that a fund can transfer ownership stakes, allowing for the lifecycle of an investment to be monitored while being audited and managed.

READ NOW: Blockchain to hit mainstream banking by 2020

The security capabilities of blockchain have been under debate in recent times, as banks and other institutions surge towards implementation of the technology.

Content from our partners
Sherif Tawfik: The Middle East and Africa are ready to lead on the climate
What to look for in a modern ERP system
How tech leaders can keep energy costs down and meet efficiency goals

An EU watchdog warned of the potential for hackers to hijack the process, while Accenture has taken action to simplify the integration of blockchain.

There have also been predictions from financial institutions that blockchain could be present in mainstream banking by 2020, with nearly half of financial institutions already investing or planning to invest in the technology in 2017.

Peter Cherecwich, president of Corporate & Institutional Services at Northern Trust said: “Current legal and administrative processes that support private equity are time consuming and expensive. A lack of transparency and efficient market practices leads to lengthy, duplicative and fragmented investment and administration processes. Northern Trust’s solution is designed to deliver a significantly enhanced and efficient approach to private equity administration”.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU