Bridgewater Associates, one of the world’s largest hedge funds, and one of the companies that will receive state subsidies under what was originally the “First Five” program, is hiring Northern Trust to independently replicate certain middle and back-office services.
Northern Trust will hire 100 people to handle the work, according to a announcement Wednesday from the financial services firm. The majority will be in Chicago, where the company is based, but some hires will be in Stamford. The contract includes trade processing, valuation, real-time reporting, cash management and accounting, as well as other services.
Northern Trust currently has more than 65 employees in Fairfield County, and may grow to a little more than 100 with this expansion, a spokesman said.
Bridgewater Associates, currently based in Westport, already outsources some of this work to another firm, and Northern Trust will mirror that work, in order to validate results. The independent review “will provide Bridgewater Associates and its investors an enhanced level of oversight and controls with respect to fund administration and middle and back-office functions,” the announcement said. The new processes will launch in 2014.
The co-president of Bridgewater, Eileen Murphy, was quoted in the announcement saying the independent review will “provide an added level of protection and security for our clients.”
“This innovative relationship sets a new standard of independence, which will benefit Bridgewater’s clients while reinforcing its leadership in the industry,” said Steven L. Fradkin, President of Corporate & Institutional Services at Northern Trust.