Thursday, January 10, 2008

Non-institutional Prime Brokerage

Looks like I was spot on about this concept. I guess a bit more digging is in order. If there is one, there are probably more. Kind of like cockroaches.

This whole arena seems ripe for competition, given the typical hedge fund concerns about front running by their primes. Also seems like the kind of area a technology oriented investor like Silver Lake, or even the PE or venture arms of some of the bulge brackets, would be looking to get into. They could always take the venture public, sell it off or spin it off it was successful. Hell, I could even see Citadel setting up an arm to do this, although, how many hedge funds would run trades through them?

Anyway, until next time...

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