Capital Introduction
June 22nd, 2009
The #1 reason why hedge funds switch prime brokers is for capital introduction services. Every hedge fund wants to improve and grow their business and the core of prime brokerage services is often seen as a commodity type business, your trades get custodied and executed no matter where you get your prime broker services from.
Many prime brokers are moving from physically offering capital introduction services to partnering with third party marketers or offering a canned marketing plan to hedge fund managers who may not have raised assets before in the past. These packages are popular and should continue to attract new business for prime brokerage firms using these strategies.
