Conifer Securities, a San Francisco-based provider of business and operations solutions to asset managers and institutional investors, has entered the prime brokerage business, in co-opera
Conifer Securities, a San Francisco-based provider of business and operations solutions to asset managers and institutional investors, has entered the prime brokerage business, in co-operation with JPMorgan’s broker-dealer business services.
Conifer is building upon its fund administration and outsourced trade execution services by offering hedge funds a full suite of prime brokerage services including financing, securities lending, asset custody and daily account reporting.
According to Conifer, the ongoing financial turmoil and growing interest in counterparty diversification have created strong demand for additional experienced prime brokers to step in and service hedge funds. ‘Many hedge fund managers today want to create relationships with multiple prime brokers who can provide alternate sources of financing as well as premium service,’ the firm says.
‘Given its 19-year track record as a top-tier hedge fund service provider, the agreement to clear and custody with JPMorgan puts Conifer in a very strong position to provide managers with alternative prime brokerage and financing sources.’
The firm’s move into the prime brokerage business is being spearheaded by Richard Del Bello, who has more than 15 years of prime brokerage experience, including seven years as head of prime brokerage for the Americas at UBS.
‘The credit crisis and subsequent market turbulence have transformed our industry as hedge funds shift assets to the most financially stable investment and commercial banks,’ Del Bello says.
‘At the same time, some of the large prime brokers are squeezing the tails of their client rosters, eliminating hedge fund accounts that aren’t suitable for their business-and that’s where Conifer comes in.’
Conifer’s president and chief executive Jack McDonald (photo) adds: ‘JPMorgan’s prime brokerage offering is the perfect complement to Conifer’s core middle and back office business, resulting in our emergence as a leading prime broker to hedge funds.
‘Given our existing relationships with all other major prime brokers, we can also service established hedge funds requiring multiple relationships by providing them with centralised reporting and an infrastructure otherwise available only to the largest funds.
‘Conifer has successfully expanded its business through the cyclical market extremes of the last twenty years. This in-depth experience and broad expertise will provide the stability and support our client partners need in growing their business.’
The firm, which was founded in 1989 and also has offices in New York, Boston and the British Virgin Islands, also provides middle- and back-office services to hedge fund clients including fund accounting and administration, trade operations, outsourced trade execution, executive office space, compliance, corporate accounting, consulting services and business infrastructure.
