Hedge Fund Poll: Best for capital introductory services – UBS
Capital introduction has often been regarded as a contentious issue by hedge funds. Prime brokers’ capital introduction services are often viewed as half-hearted and have been compared to speed dating, rather than being well-thought-out, professional matchmaking of correct investors with suitable managers. It’s a tough call for prime brokers, as capital introduction services do not contribute to revenue. Because of this, many have not invested in that line of business.
UBS, however, is consistently heralded by hedge fund managers as a provider of true capital introductory services, and in the Euromoney poll of hedge fund investors has been voted first in that category. Building a prime brokerage business from nothing, and competing with such industry stalwarts as Goldman Sachs and Morgan Stanley, UBS recognized the need to differentiate itself; one way it has succeeded is through capital introduction. The firm has hired people with strong backgrounds in consultancy firms, funds of hedge funds and family offices that are experienced in the procedure of hedge fund capital-raising. In addition, UBS has made full use of the relationships it has across the financial spectrum, such as banking, pensions and wealth management, as well as its global presence, to tap into investors that even large hedge funds are unable to access.