Apex Clearing, an independent, full-service clearing firm, has launched its Apex Prime brokerage offering for hedge funds with up to USD200 million in assets under management.
Apex Clearing has put together a team headed by former Convergex executive John Mollica and has added former Goldman Sachs executive Brian Duggan as a strategic adviser to the business.
Apex Clearing's move into prime brokerage coincides with a major industry shift that has left a growing number of small and mid-sized hedge funds in need of services no longer being offered by bigger firms. Increased regulatory pressure since the 2008 financial crisis has forced larger prime brokers such as Credit Suisse, Goldman Sachs and JP Morgan to reduce the size of their balance sheets, compelling them to terminate many of their smaller clients. Apex Prime offers these hedge funds solutions that combine customer service with technology and risk management. Apex Clearing can also take full custody of a client's assets, eliminating the need for middlemen.
To raise awareness of its new offering, Apex Clearing is launching a tongue-in-cheek advertising campaign called “Dumped by Your Prime Broker?” Inspired by classic personal ads, the campaign makes a direct appeal to hedge funds who have been terminated by their prime broker and are seeking a new, long-term relationship. The advertisements are running in major trade publications covering the hedge fund industry and on a variety of outdoor assets in major financial centres.
“Apex Clearing has long been a leader in the clearing and custody space and our technology expertise is helping to power the current digital revolution in financial services. We're leveraging our proven ability to solve complex Fintech problems to reimagine solutions for the prime brokerage space,” says William Capuzzi (pictured), CEO of Apex Clearing. “As many prime brokers terminate their relationships with emerging hedge funds, we're here to provide those same clients the products, services and peace of mind they were seeking from large prime brokers. We'll do all this with a personal touch and flexible technology they can't find anywhere else.”