Hedge fund industry veterans to offer capital introduction services through newly launched Layton Road Group
Tom Mahala (pictured), former Global Head of Capital Introduction and Americas Hedge Fund Relationship Management at BNP Paribas, has launched Layton Road Group, which will offer capital introduction and placement agent services to the alternative asset management community through Profor Securities, a member of FINRA and SIPC.
Profor Securities is a 13-year old broker-dealer and placement agent.
Through its inaugural Outsourced Cap Intro for prime brokers service, Layton Road seeks to expand and enhance the current capital introduction approach traditionally offered directly, in-house by teams within investment banks’ prime brokerage groups. “The traditional approach to capital introduction is fraught with inefficiencies today – Layton Road aims to offer a better solution to the market,” says Mahala, a 26-year prime brokerage veteran and President of Layton Road.
Layton Road will offer a ‘plug-and-play’ capital introduction outsourcing solution for prime brokerages, facilitating the flow of capital between institutional investors and hedge funds. The Layton Road solution aims to help managers, investors and prime brokers. Key benefits of the Layton Road Outsourced Cap Intro solution include: unparalleled service from six seasoned capital markets professionals with an average of nearly 20 years of diverse capital markets experience; a reduction in expense overhead for the prime broker; and strict accountability to drive results.
“We recognise that prime brokers are seeking ways to improve their ROE,” says Mahala. “Outsourcing capital introduction will aid that cause and can drive higher service levels and accountability.”
The firm will be an outlet for underserved alternative investment firms and/or those that are not currently clients of Wall Street’s prime brokers. These firms tend to generate an immaterial prime brokerage footprint, which, until now, has been a barrier to obtaining capital introduction support. The types of asset managers that fit into this category include Commodity Trading Advisors (CTAs), structured credit funds, low-levered and high-gross long/short equity funds. Layton Road will take a solutions-oriented approach while offering managers a choice of capital introduction or placement agent services, considering their stage of growth, existing marketing and IR resources and their operating budget.
“A significant number of hedge funds are receiving inadequate or non-existent capital introduction support,” says Mahala. “Our innovative business model will change that.”
Through the Profor Securities broker-dealer, Layton Road will provide a robust menu of services to alternative asset managers seeking to raise capital, including brand and marketing guidance, peer reviews and customised, turn-key sales campaigns. The team will serve hedge funds, private equity and real estate firms.
The Layton Road Group’s veteran marketers and experienced sales professionals are well-positioned to advise and assist alternative asset managers from pre-launch phase to maturity.
“The desire to raise capital is a common thread among the Street’s 15,000-plus hedge funds,” adds Mahala. “With our team’s expertise and legacy operating in the alternative asset space, Layton Road can provide the sales and marketing resources that firms need to meet their capital raising goals. Most importantly, our services will allow alternative managers to remain focused on what they do best – investing capital.”
Patrick O’Meara, Founder, Profor Securities, says: “Tom’s 30-plus years of experience and abundant industry relationships puts him in an ideal position to capitalise on the alternative asset management industry’s fragmented nature. There’s a growing need to partner with high-quality, connected influencers to assist in meeting their asset-raising goals, and Layton Road offers unparalleled breadth of coverage and insight.”