Investment bank Jefferies Group has confirmed it will be offering prime brokerage services to hedge funds. These services will be aimed at small to mid-sized hedge funds in the $1.2 trillion industry.
Prime brokerage in the US is currently dominated by Morgan Stanley, Goldman Sachs, and Bear Stearns, who between them control two thirds of the market.
“We’re starting fresh, using best-of-breed technology to build out our platform,” says Glen Dailey, the recently recruited managing director and head of prime brokerage operations at Jefferies. “We think there is value we can add in the small- to mid-cap range.”