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Prime broker

A bank providing execution, financing, custody and securities lending to hedge funds. Historically the home of capital introduction, delivered as a value-added service to its larger clients.

Prime broker — A bank providing execution, financing, custody and securities lending to hedge funds. Historically the home of capital introduction, delivered as a value-added service to its larger clients.

A prime broker's cap intro desk is fundamentally a value-added service funded by execution, financing and securities lending revenue — which is the structural reason it has historically concentrated on the largest, most revenue-generating clients rather than the broader pool of credible managers.

Frequently asked questions

Do all hedge funds use a prime broker?

Most funds that trade liquid securities with leverage or short exposure use one, but strategies with different execution needs — many real estate, private equity or private credit funds — often have no prime brokerage relationship at all.

Is prime brokerage capital introduction free?

It's bundled rather than genuinely free — the cost is implicit in the expectation that the client routes meaningful trading, financing and lending business to the prime broker.

Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.

Capital introduction vs prime brokerageRelated reading.AUMAssets under management: the total value of assets a manager runs for investors. The crude Capital introductionConnecting fund managers and private issuers with prospective investors. The introducer cr

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