14/07/2010 Author: Elana Margulies

Cap intro hires ramp up at prime brokerage firms

Prime brokers, ranging from large investment-bank owned firms to the so-called mid-tier and mini-primes, are continuing to make more hires in their capital introductions departments, as competition heats up in the space.

HFMWeek can exclusively reveal that among the larger firms currently boosting their capital-raising efforts with additional personnel are Barclays Capital, Deutsche Bank and Goldman Sachs.

According to sources familiar with the bank’s plans, Barclays is hiring in the US. Meanwhile, Deutsche Bank, which has added more staff in both the US and London, will continue expanding this summer in both regions. Finally Goldman Sachs, one of the few not to cut its cap-intro team during the 2008 crisis, is boosting its team across the globe.

These expansions follow recently published reports that BNP Paribas is expected to add at least five new people worldwide, following recent hires in its New York and Dallas offices.

At the mid-tier level, Merlin Securities is considering hiring one more employee in New York focused on capital introductions, following the three hires made in the last year.

Ron Suber, senior partner, global head of sales and marketing at Merlin, said the firm expects to make an additional hire in the department as it responds to the needs of increased numbers of hedge fund clients.

“We definitely see the family offices and some of the seeders and incubators and middle-level institutions allocating to managers under $1bn and, given the investor demand and client roster, capital development people remain an essential solution for our business,” he said.

On the mini-prime level, EFX Prime Services is expected to add another senior-level capital introductions person later this year.