Northern Trust has agreed to take an equity stake in behavioural analytics and consulting firm Essentia Analytics.
Financial terms of the deal have not been revealed.
Essentia leverages historical data and behavioural science to identify and address biases that influence investment decision-making. The company offers daily analysis on more than $200bn in assets worldwide.
The strategic investment will support Northern Trust Whole Office strategy which focuses on providing client with access to latest technologies, services and solutions across the investment lifecycle.
Northern Trust’s asset manager and asset owner clients will be able to leverage Essentia’s capabilities.
Northern Trust Corporate & Institutional Services president Pete Cherecwich said: “We continue to pursue a strategy that combines Northern Trust’s global architecture with innovative partners like Essentia to help clients maximise the value of their data and optimise investment performance.
“Through our Whole Office partnerships, Northern Trust clients across the globe can access advanced technology, skills and services designed to help them make repeatable and measurable decisions in the quest to deliver alpha.”
Essentia Analytics founder and CEO Clare Levy added: “We look forward to the opportunity to work with Northern Trust to bring enhanced productivity and investment performance to the front office of clients across the globe.”
Recent developments at Northern Trust
Recently, Northern Trust launched an artificial intelligence-powered solution to extract unstructured investment data from alternative asset documents.
In May, Northern Trust concluded its acquisition of Parilux Investment Technology, following its investments in the firm in 2018.