Invast rebrands to 26 Degrees to fill Prime Brokerage gap left by Tier 1 investment banks
“The prime brokerage global market is in a state of flux. This has highlighted the strong position of prime broking independents such as 26 Degrees to step up and support these underserviced market segments.”
Invast Global has rebranded to 26 Degrees in order to reposition itself in the prime brokerage space.
The move is expected to drive further growth in this billion-dollar industry, approximately worth US$20 billion, as 26 Degrees aims to show up and cater to the many broker-dealers, hedge funds, and family offices who are being “left out in the cold by the shakeout in
the prime brokerage market”, the firm stated.
26 Degrees offers PB to broker-dealers, hedge funds, and family offices
Prime Services used to be taken care of by global investment bank behemoths, but the number of global players is rapidly diminishing, with further reductions expected as providers implement the BASEL III/IV regulatory changes.
This structural change has been going on over the last five years, with the formerly known Invast Global stepping up since then. Now it is time to rebrand the multi-asset prime brokerage business and make the stand.
26 Degrees is addressing the biggest challenge for fund managers and broker-dealers out there, who are increasingly disenfranchised by the diminishing service levels and more costly access to liquidity offered by the larger Tier 1 banks as a result of this operating environment.
As broker-dealers, emerging hedge funds and family offices still need access to prime brokerage services to remain competitive in an industry measured by the ability to perform, now is the time for independent prime service providers like 26 Degrees, which already enjoys vast experience in the field, as well as technology and expertise.
26 Degrees addresses PB gap left in response to BASEL III/IV regulatory changes
26 Degrees said it estimates the revenue attributable to clients with AUM under US$100m is US$3.2 billion or 15.8% of the industry. As thresholds for Tier 1 investment banks retract from this segment of the market, the opportunity for 26 Degrees becomes clear.
Gavin White, CEO of 26 Degrees, commented: “The prime brokerage global market is in a state of flux. This has highlighted the strong position of prime broking independents such as 26 Degrees to step up and support these underserviced market segments. We are excited about this opportunity and have made the strategic decision to retire the Invast Global brand and focus 26 Degrees on institutional clients. We’d predicted this shift, and this repositioning future proofs our business to continue to thrive in response to the changing regulatory and operating environments we are seeing unfold.
“With the collapse of a number of international banks and the resulting headwinds, we have bolstered our relationships with Tier 1 investment banks including, JP Morgan, Deutsche Bank, NatWest, and Morgan Stanley. As some Prime Brokers have chosen to step away from the prime broking space over the past year, our ability to continue to expand and diversify our panel of Prime Broker relationships shows commitment to the industry and also the esteem with which our business is held by the Tier 1 investment banks.”
“We are seeing a watershed moment in our industry, one that we predicted based on history repeating itself, and which we planned for. Our partners deserve better and are looking for a record of performance, a longevity of experience and a commitment to the industry and their clients, which 26 Degrees can deliver now and into the future. 26 Degrees is seizing the opportunity that this shift in Prime Services presents and we are challenging the dominant model in our industry. We are very excited to be modern pioneers of the independent model, providing accessible prime solutions and are stepping up our presence globally as a prime partner of choice.”
26 Degrees refers to the 26th degree latitude which runs parallel across the widest breadth of Australia dividing it from North to South. It crosses the Indian Ocean to meet the Cradle of Humanity in South Africa, where humankind evolved, the firm said.
The Prime Broker aggregates bank and non-bank liquidity to offer bespoke, optimized liquidity streams with a carefully designed suite of trusted collateral solutions and leverage arrangements. 26 Degrees Global Markets is a registered trading name of Invast Financial Services Pty Ltd (ABN 48 162 400 035) (AFSL No. 438283).