A Shift in the Prime Brokerage Relationship
Prime brokerage has long provided essential infrastructure for hedge funds and family offices. But over the past several years, the expectations around that relationship have changed.
What was once a transactional service—execution, custody, margin—is now expected to be a strategic partnership, built around the client’s individual needs. More firms, particularly newer launches and sophisticated family offices, are asking: “What does it look like when my prime broker actually understands my book, my risk tolerance, my strategy, and my growth path?”
That shift is not theoretical—it is currently reshaping how services are delivered across the industry.
From Standardization to Customization
No two hedge funds are identical. Quant strategies, credit funds, long/short equity, macro—each has distinct financing, operational, and reporting needs. Yet for years, prime brokerage services tended to offer relatively standardized solutions.
That’s changing. Increasingly, clients expect: – Custom financing structures – margin methodologies and short financing that reflect strategy-specific needs – Flexible operational setups – integrations with fund-specific tech stacks, customized reporting, or unique settlement flows – Support across asset classes and geographies – not just execution, but seamless clearing and custody across global markets
Where once clients might have adapted to their prime’s systems, they now expect the reverse: bespoke services built around them.
The Role of Responsiveness
Customization isn’t just about infrastructure—it’s also about people.
What many hedge funds value most today isn’t a slick portal, but rather a responsive relationship. Someone who actually answers the phone as well as someone who knows the fund’s structure and can escalate a margin issue quickly or troubleshoot a corporate action anomaly before it becomes a problem.
This is especially true for emerging managers, who may lean on their prime for guidance beyond trade execution; but it also holds true for established funds, who expect prompt, proactive communication when navigating complex, high-volume trades or operational challenges.
Beyond the Core: Value-Added Services
Today’s prime brokerage often includes a broader ecosystem of support. For funds looking for more than the basics, the industry increasingly offers: – Capital introduction – particularly useful for emerging managers or those building new mandates – Outsourced trading desks – to augment execution capabilities without building a full in-house desk – Tailored securities lending – especially for strategies with complex shorting needs – Risk analytics and transparency tools – real-time portfolio insights, margin modeling, or custom dashboards – Operational consulting – from launch planning to best practices in reconciliations, NAV oversight, or compliance workflows
None of these are new concepts. What’s new is the expectation that they be modular, flexible, and available if—and when—the client wants them.
Global Platforms, Boutique Service
One trend across the industry is the attempt to strike a balance: combining the reach and stability of a global platform with the attentiveness and flexibility of a boutique.
For clients, the ideal partner tends to be one that can scale with them—across markets, asset classes, and fund structures—without sacrificing the high-touch experience they expect.
Some firms, like Mirae Asset, have leaned into this model: building infrastructure that spans markets across North America, Europe, and Asia, while structuring their client services teams to provide on-the-ground, relationship-based support.
What Clients Are Asking For
In conversations across the industry, several recurring themes stand out among hedge fund and family office clients seeking prime brokerage services:
1. “Will they really prioritize me?” In a world where some large banks are selectively offboarding, clients want to know they’re not an afterthought.
2. “How responsive are they?” Especially during volatility or month-end crunches, delays can become costly.
3. “Can they handle my complexity?” Whether it’s a multi-strategy structure or a launch across multiple domiciles, cookie-cutter setups won’t cut it.
4. “Do they know how to help me grow?” Prime brokerage is increasingly seen as part of the growth infrastructure—not just a middleman for trades.
Final Thoughts: Choosing the Right Fit
There is no universal blueprint for the ideal prime brokerage relationship. But for many hedge funds and family offices, the calculus has shifted and capabilities matter, as does balance sheet. As well as customization, availability, and trust.
Prime brokerage, at its best, is not just about trades—it is about partnership. As the industry moves toward more flexible, client-driven models, managers have more options than ever to find a partner aligned to their vision, complexity, and ambition.
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