Partners Group Selects Northern Trust to Provide Asset Servicing Solutions for its Private Equity ELTIF Evergreen Fund
Northern Trust (Nasdaq: NTRS) has been appointed by Partners Group (SIX: PGHN) to provide comprehensive asset servicing solutions for its new ELTIF-compliant Private Equity Evergreen Fund. This collaboration involves offering fund accounting, transfer agency, depositary, and corporate secretarial services for the fund, which adheres to the updated European Union ELTIF 2.0 regulations. These regulations aim to facilitate European investments in private market assets through semi-liquid funds accessible to both professional and non-professional investors. Partners Group manages $147 billion in assets and views this fund as a strategic move to leverage thematic growth trends. Northern Trust's role underscores its capability in supporting diverse asset classes and flexible investment strategies.
- Northern Trust secures a significant role providing asset servicing solutions for Partners Group's ELTIF Evergreen Fund.
- The collaboration highlights Northern Trust's expertise in fund administration, global custody, and investment operations outsourcing.
- Partners Group manages $147 billion in assets, indicating a high-profile client for Northern Trust.
- The new ELTIF 2.0 regime facilitates European investments in private market assets, potentially increasing fund participation.
- The fund offers monthly redemptions and investor protections, appealing to a broader investor base.
- The fund's success depends on the semi-liquid fund structure's acceptance by non-professional investors, which is untested under the new ELTIF 2.0 regulations.
- Any operational or administrative failures by Northern Trust could impact their reputation and client relationships.
Insights
Partners Group's decision to appoint Northern Trust for asset servicing solutions for its new Private Equity ELTIF Evergreen Fund marks a significant step in the private equity landscape, as it leverages the newly updated ELTIF 2.0 regulations. The ELTIF 2.0 framework aims to open up private market investments to a broader spectrum of investors, including retail investors, which could drive increased capital inflows into private equity. This move potentially strengthens Partners Group's positioning within the evolving European market. For Northern Trust, this partnership not only expands their service portfolio but also reinforces their market position as a key player capable of handling complex multi-asset class strategies.
In the short term, the increased administrative and custodial responsibilities may pressure Northern Trust's operational teams, but the long-term benefits include establishing a reputable track record in servicing ELTIF-compliant funds, likely attracting more business from asset managers who seek these capabilities. For Partners Group, the ability to offer semi-liquid private equity investments aligns with the growing demand for more flexible investment vehicles among high-net-worth individuals and retail investors.
The fund's structure as an SICAV, offering features like monthly redemptions, provides liquidity options rarely seen in traditional private equity investments, which may attract a new demographic of investors seeking both growth and liquidity.
The launch of the Private Equity ELTIF Evergreen Fund under the ELTIF 2.0 regime is a strategic move by Partners Group to tap into a new investor base that includes non-professional investors. This diversification could potentially democratize private equity investments, previously accessible largely to institutional investors. The simplified administration and enhanced investor protections under the ELTIF 2.0 framework could lower the barrier for entry, making private equity more attractive to cautious investors.
From a market perspective, Northern Trust's role as a service provider will likely enhance their credibility in the asset management industry. This partnership could be seen as a validation of their robust technology and fund servicing capabilities, which are critical in managing the intricacies of ELTIF-compliant funds. The success of this fund could set a precedent for similar future initiatives, influencing the broader market trend towards semi-liquid investment strategies.
Given the competitive nature of the fund services sector, Northern Trust's early involvement in ELTIF 2.0 funds might give them an edge over competitors who are slower to adapt to these new regulatory frameworks. This strategic positioning could lead to increased market share in the long term.
Supporting One of the First ELTIF 2.0-Compliant Funds Launched for European Investors
LUXEMBOURG--(BUSINESS WIRE)-- Northern Trust (Nasdaq: NTRS) today announces it is providing Partners Group (SIX Swiss Exchange: PGHN) with fund accounting, transfer agency, depositary and corporate secretarial services for its new European Long Term Investment Fund (ELTIF)-compliant Private Equity ELTIF Evergreen Fund.
Founded in 1996 and based in
Its Private Equity ELTIF Evergreen Fund is Partners Group’s first launch under the updated European Union regulation for ELTIFs enacted in January this year and is one of the industry’s first of this type. The new ELTIF 2.0 regime is intended to facilitate European investment into private market assets via semi-liquid funds and related strategies, including by individuals not considered to be professional investors.
Structured as a Luxembourg Société d'Investissement à Capital Variable (SICAV), the fund’s objective is to provide investors access to evergreen fund features such as monthly redemptions, alongside the investor protections and simplified administration that the ELTIF 2.0 regime aims to afford participants.
Markus Pimpl, Managing Director at Partners Group, commented: “Appointing Northern Trust to provide solutions for the Private Equity Evergreen ELTIF Fund expands our strategic relationship on the basis of its capability to support multiple asset classes as part of our private equity strategy, and to enable flexibility for individual and institutional investors as they invest in-line with our pro-rata allocation policy. We thank the team for its collaborative engagement throughout the planning and launch of this fund.”
Olivier Noël, country head, Luxembourg at Northern Trust, said: “We are delighted to expand our relationship with Partners Group as it extends its range of semi-liquid strategies. Through our technology, fund structuring and investor servicing expertise, this appointment further evidences our consultative and technical capability to support asset managers through the lifecycle of their funds – as they address the significant opportunity in this fast-evolving part of the funds industry.”
Northern Trust’s Global Fund Services business provides services including fund administration, global custody, investment operations outsourcing and data solutions to global investment managers – supporting a range of complex investment strategies across the full spectrum of asset classes.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in
Northern Trust Corporation, Head Office: 50 South La Salle Street,
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Source: Northern Trust Corporation
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