Northern Trust, a US-based investment management firm, has unveiled capital call execution service to enhance servicing for private equity.
The newly launched service enables clients to gain operational efficiencies by outsourcing the processing of capital calls.
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Northern Trust in a statement said that 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.
The service is aimed at portfolios with over 20 private equity investments. It will enable clients notify Northern Trust of the initial capital call via the automated trade order entry system.
The company added that it will manage all subsequent capital call payments directly with the private equity general partners, either based on standing direction or individually based on client approval.
The service will include enhanced capabilities such as simplified global operational process for handling subsequent capital call processing, direct communication between Northern Trust and general partners for capital calls and offer more time focused on investment decisions and reduce time in administering capital calls.
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By GlobalDataNorthern Trust America head of Corporate & Institutional Services Pete Cherecwich said: "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."
