Prime Brokerage Financing & Equity Services
Prime Brokerage Financing & Equity Services
Prime brokerage and counter-party risk management came up several times within conversations at the Hedge Fund Group (HFG) event in Chicago. Everyone we spoke with on this topic was an agreement that the following activities are leading to a flood of both small hedge fund startups and larger hedge fund businesses to look for additional prime brokerage relationships:
- Minimum fee charges of $25-30,000+ to remain a client of large prime brokerage firms
- High touch sales pitches which turn into low touch almost non-existent servicing once the hedge fund is a client of the prime broker
- Hedge funds wanting to lower custodian risk by multi-priming with 2-3 prime brokerage firms early on and then 3-5 prime brokers as their fund expands to over $750M or $1B in assets under management
- Capital introduction promises that are never delivered to the manager in any tangible way
- Large prime brokerage firms now often cutting out their clients who cannot product $20,000+ of business a month, they are too busy for these smaller accounts. This can sometimes lead to frustrating conversations for hedge fund managers who do not want to make changes right now and make changes to their trading or operations due to a switch in prime brokers
If you have seen other reasons why the prime brokerage industry is evolving please send them in and we can add them to this list. If you are interested in working with a prime broker which may offer multi-custodian solutions, technology and cap intro/marketing assistance please complete the form at the bottom of this page.
Tags: prime brokerage financing, prime brokerage division, prime brokerage equity services, prime brokerage customer service, prime brokerage finance, prime brokerage market
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Tags: prime brokerage customer service, prime brokerage division, prime brokerage equity services, prime brokerage finance, prime brokerage financing, prime brokerage market
