h1 style=”text-align: center;”bTop 3 Trendsbr //b/h1h2 style=”text-align: center;”bTop 3 Prime Brokerage Trends/b/h2br /a onblur=”try {parent.deselectBloggerImageGracefully();} catch(e) {}” href=”http://www.mauronewmedia.com/images/ued/main-business-objectives.jpg”img style=”margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 228px; height: 162px;” src=”http://www.mauronewmedia.com/images/ued/main-business-objectives.jpg” alt=”" border=”0″ //aOver the last two years the mainstream media’s and general public’s interest in prime brokerage has rapidly grown. This is due to a number of factors including the struggle and failure many investment banks offering prime brokerage services including a alt=”Lehman Prime Broker” href=”http://primebrokerageguide.com/2008/05/lehman-prime-broker.html” title=”Lehman Prime Broker”Lehman Brothers/a, mergers within the industry and widespread failures and redemption notices of hedge funds themselves.br /br /The top three trends affecting the prime brokerage industry right now are multi-prime brokerage relationships, limiting capital introduction services, and prime brokers acting as business partners to hedge fund managers.br /br /Multi-prime brokerage relationships used to be used by $5B+ a href=”http://richard-wilson.blogspot.com/2008/03/hedge-funds.html”hedge funds/a whose large institutional clients demanded the practice as a risk management technique. In the past this was almost though of as unnecessary as no large investment banks offering prime services had collapsed. It was seen in the same light as a major economic superpower defaulting on their own investment notes. This year, in 2008 everything has changed, Lehman failed and many investment banks have struggled or sold off their prime brokerage services to other firms. This has lead to widespread migrations between prime brokerage service providers and a trend towards managing multi-a href=”http://primebrokerageguide.com/”prime brokerage/a relationships for funds with over $500M in assets or even lower. Some firms as small as $5M are choosing to work with more than one prime brokerage firm from the very start as a few firms have reported shutting down due to assets being locked up within Lehman Brothers when they collapsed earlier this year.br /br /Another shift in the industry has been felt within the area of capital introduction services. Anyone offering these services lately has faced increased challenges of investors sitting on cash, poor market and overall industry performance along with increasingly frequent reports of hedge fund fraud. Prime brokerage firms are no effected by this, especially since they often take on and attempt to service more clients than most independent a href=”http://richard-wilson.blogspot.com/”hedge fund/a marketers which are often referred to as third party marketers would. This had led to more selective capital introduction service offerings by prime brokerage firms and more frequent partnerships between prime brokerage firms and third party marketers in the industry.br /br /The third major trend affecting the prime brokerage business is that more firms in the space are positioning themselves as business partners. This is due to the commoditized nature of the industry and high level of competition for new business. Prime brokerage firms are now publishing white papers, offering business plan and marketing plan startup tools and holding workshops and networking events to help hedge fund managers connect with additional business partners and a alt=”Hedge Fund Blogger.com: Hedge Fund Investors” href=”http://richard-wilson.blogspot.com/2008/01/hedge-fund-investors.html” title=”Hedge Fund Investors”investors/a.br /h4Related to Top 3 Prime Brokerage Trends:/h4ullia title=”Hedge Fund Careers” href=”http://richard-wilson.blogspot.com/2007/10/hedge-fund-career.html” description=”Hedge Fund Careers” alt=”Hedge Fund Careers”span style=”font-size:100%;”/span/aa title=”" style=”font-family: arial;” href=”http://richard-wilson.blogspot.com/2007/10/hedge-fund-prime-broker.html” description=”Hedge fund prime broker, prime broker services for hedge funds, hedge funds prime broker, hedge fund prime brokers, prime brokerage hedge funds, fund prime brokerage, hedge fund prime broker services, prime broker, prime brokers” alt=”prime brokers, prime brokerage”Hedge Fund Prime Brokers/a/lilia title=”hedge fund associations” href=”http://richard-wilson.blogspot.com/2008/03/hedge-fund-associations.html” description=”hedge fund associations” alt=”hedge fund associations”span style=”font-size:100%;”/span/aa title=”Prime Brokerage Services” href=”http://richard-wilson.blogspot.com/2008/04/prime-brokerage-services.html” description=”Prime Brokerage Services” alt=”Prime Brokerage Services”span style=”font-size:100%;”/span/aa title=”Prime Brokerage Services” href=”http://richard-wilson.blogspot.com/2008/04/prime-brokerage-services.html” description=”Prime Brokerage Services” alt=”Prime Brokerage Services”Prime Brokerage Services/aa title=”hedge fund associations” href=”http://richard-wilson.blogspot.com/2008/03/hedge-fund-associations.html” description=”hedge fund associations” alt=”hedge fund associations”/a /lilia description=”Prime Brokerage, Prime Brokerage Services, Prime Brokerage Survey, FX prime brokerage, Currency Prime Brokerage, Synthetic Prime Brokerage” alt=”Prime Brokerage” href=”http://richard-wilson.blogspot.com/2008/06/prime-brokerage.html” title=”Prime Brokerage”Prime Brokerage/a/lilia title=”Hedge Fund Work” href=”http://richard-wilson.blogspot.com/2008/06/hedge-fund-work.html” description=”Hedge Fund Work, Hedge Fund Employers, Hedge Fund Employers, Work at a Hedge Fund, Hedge Funds Work” alt=”Hedge Fund Work, Work at a hedge fund”Hedge Fund Work /a/lilia title=”hedge fund recruiters” href=”http://richard-wilson.blogspot.com/2008/03/hedge-fund-recruiters-recruitment.html” description=”hedge fund recruiters” alt=”hedge fund recruiters”Hedge Fund Recruiters /a/li/ulTags: Prime Brokerage News, Prime Brokerage Trends, Prime Broker Trends, Prime Broker News, Prime Broker Changes, Changes to Prime Brokerage Firms, Prime Brokerage, prime brokerdiv class=”feedflare”
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Last 5 posts by Richard C. Wilson

• Hedge Fund Pitch Book | Marketing Materials - February 11th, 2009
• Hedge Funds and Private Equity in 2009 and 2010 - February 6th, 2009
• Hedge Fund Business Model Discussion | Video - February 4th, 2009
• Private Equity Regulation in Europe and America - February 3rd, 2009
• Prime Broker Market | Opportunities Challenges - February 2nd, 2009