RBC Capital Markets today announced it has completed the formation of the RBC Global Prime Services Group to provide dedicated and comprehensive support to hedge fund managers, mutual fund managers and institutional asset managers via a single platform backed by RBC, one of North America's largest and most highly rated financial institutions.
"We recognize that the lines between hedge fund and traditional institutional managers are becoming more obscure as their needs become more similar - hedge funds are going public and no longer using only long/short strategies, traditional fund managers are launching 130/30 funds, using leverage and shorting, while institutional managers need more robust services," said Jeremy Frommer, head of RBC Global Prime Services. "We decided to break down silos by bringing together, under a single umbrella, everything from prime brokerage to trading technology, securities lending to capital introductions, as well as financing. RBC Global Prime Services provides clients with the comprehensive and robust array of multi-asset class products and services they need in today's complex, rapidly moving markets."
The formation of the new business unit, featuring a single-point-of-contact customer service platform, comes as fund managers, traders and other counterparties are seeking prime brokerage and service providers with strong credit quality and stability on which they can depend. "While the past few months have seen unprecedented challenges in the brokerage industry, RBC's strength and stability has been - and will remain - a source of confidence for our clients, particularly those in alternative investments," said Frommer.
"Our unique single-point-of-contact for multi asset class service provides a consolidated view of a client's portfolio, enabling us to fully understand our clients' needs and provide the right products and the highest level of service possible," said Daniel Dorenbush, head of Relationship Management for RBC Global Prime Services.
The Global Prime Services Group, which has made a substantial investment in technology this year, has seen a 20 per cent increase in clients and a related increase in assets under management in the past six months. The Group brings together services recently launched by RBC as well as several operational units with a strong record of serving RBC clients, including:
- RBCAccel, a multi-asset class proprietary trading platform;
- The RBC Capital Introduction Group, which works closely with investors to efficiently introduce them to hedge fund managers seeking to grow their assets. In addition, the group offers the RBC Emerging Manager Allocator platform, a proprietary, multi-strategy growth fund-of-hedge funds; and,
- The RBC Global Futures & Base Metals Group, which offers global execution and clearing solutions for futures and options traders, as well as specialized interest rate, foreign exchange, equity, base metals, and commodity and energy product and service offerings.
"Building the Global Prime Services Group enables us to truly partner with our clients," said Greg Mills, head of Global Equity Sales & Trading for RBC Capital Markets. "We are now able to provide a fully consolidated platform that enables us to maximize the benefits to our clients and efficiently employ RBC's financing capabilities."