For emerging and mid-sized hedge funds, a strong prime broker relationship can make the difference between surviving and scaling. 

Launching and running a fund, no matter where in the world it is based, remains as challenging as ever. Operational costs, regulatory burdens, and ability to hire and retain talent are persistent headwinds. Add to that the increasing geo-political uncertainty and a complex global investor landscape and it is no surprise that fund managers are looking for more than transactional services from their prime broker. In order to maximise growth opportunities, they need their prime broker to provide insight, access and value.

A hedge fund’s long-term success can hinge on the right prime brokerage relationship. The following five considerations are key to making that assessment.

1.    Strategic consultancy, not just service delivery

The best prime brokers act as strategic consultants, particularly for new or expanding funds. There is also an increasing list of talented managers that are held back by sub-optimal infrastructure set ups. The prime broker’s visibility and expertise across the hedge fund and investor landscape allows them to offer perspective on what’s working and how to avoid common pitfalls. Whether it’s choosing the right fund domicile, refining a launch plan, advice on selecting a technology platform, or navigating complex regulations, a prime broker should be a sounding board as well as a service provider. A prime broker with experience guiding emerging managers can help founders focus on their investment thesis while ensuring their platform set up is sound and scalable.

2.    Operational consolidation and cost efficiency

Fragmented infrastructure is a common issue, particularly for funds that have added providers piecemeal as they grow. It is not uncommon to see custody with one party, execution with another and financing with a third. This setup may seem flexible at first, but it often leads to inefficiencies, unnecessary costs and operational friction.

A prime broker offering a consolidated, full-service platform can provide significant value.

Consolidation across custody, leverage, execution and shorting means fewer counterparties, cross-margining opportunities, streamlined reporting and reduced risk. Operational simplicity also frees up time and resources, allowing managers to redirect attention to alpha generation and investor relations.

In addition, an integrated relationship can enhance negotiating power. A larger wallet with a single prime broker opens the door to additional services, such as capital introduction, that may be out of reach when activity is split across multiple providers.

3.    Talent and networks

Beyond operational support, prime brokers have valuable networks. For emerging funds, finding the right talent can be a major challenge. A prime broker with a strong network can introduce managers to fellow investment professionals, experienced operational staff, traders and “C” suite hires, helping them build robust internal teams.

This ability to make recommendations and introductions extends to the investor community as well. A prime broker with deep institutional relationships can help funds build their brand with allocators who are often difficult to reach independently. This is especially important for smaller and mid-sized funds where credibility and access matter as much as performance.

4.    A truly global service offering

As the hedge fund industry globalises, an increasing number of managers are launching outside traditional financial hubs. From Latin America to Southeast Asia, we’re seeing a surge in emerging managers who are sophisticated in strategy but underserved by the global prime broker landscape.

Many large prime brokers remain focused on major markets centred around New York, London and Hong Kong, and are less present to provide a service for managers in countries like Brazil, Taiwan, South Africa and the wider Middle East. A mid-sized, international prime broker with global infrastructure can fill this gap, delivering a broad product offering alongside consistent, high-touch service and support, regardless of geography.

This global footprint also matters for capital introduction. Many of these emerging locations are unlikely to feature on the investor roadshow circuit, so access to allocator networks in the US, Europe and Asia can be transformative, as international access can be critical to their fundraising success. In the more mainstream financial regions, such as London, New York and Dubai, partnering with a prime broker with a local presence is imperative for vital introductions and relationship building.

5.    Capital introduction with senior engagement

Capital introduction is one of the most sought-after services by fund managers, but its value hinges on how it is delivered. It is not enough to make a few passive introductions and leave managers to their own devices. Cap intro should be personal, strategic and relationship-driven.

Senior-level engagement from the cap intro team matters. Managers benefit most when introductions are carefully curated, when feedback is shared post-meeting, and when there’s a long-term commitment to building allocator relationships over time. In this respect, a prime broker’s approach to capital introduction can be a good barometer of their broader service philosophy: are they transactional, or truly invested in the client’s growth?

For fund managers, especially those early in their lifecycle or operating outside traditional hubs, selecting the right prime broker is one of the most important decisions they’ll make. The relationship should go beyond pricing and product, it should feel like a partnership. A prime broker that brings together operational efficiency, strategic guidance, talent networks and global investor access doesn’t just help a fund survive, it helps it to grow.