March 2022 | New pressure points and the implosion of Archegos saw dramatic upheaval in the prime brokerage industry over the past year. This has created additional challenges but also opportunities for smaller primes amid the dominance of the ‘Big Three’ as virtual networking, and new trends in data and ESG reshape the hedge fund-prime broker dynamic
The collapse of Archegos and the GameStop short squeeze has radically upended the hedge fund prime brokerage space over the past year, raising fundamental questions over PBs’ lending activities and business models.
As hedge fund assets rise and performance rebounds, prime brokers can be a critical part of the industry's growth.
New trends – from technology and data to digital assets and ESG – are transforming the way hedge fund firms invest and operate. What new innovations, products and services are prime brokers offering to keep pace with this evolution?
After two years of virtual introductions, are capital introduction services still a cornerstone of the prime services industry in the way they were pre-pandemic?
As the hedge fund industry expands into newer markets and asset classes, smaller prime brokers can carve out boutique offerings in niche and specialist areas – but scalability challenges remain.
For start-up and emerging managers, successfully launching and running a hedge fund is trickier than ever before. As markets ebb and flow, the level of support provided by prime brokers in the early stages remains critical.