Building an Effective Alternative Asset Manager/PB Relationship (Wells Fargo)

KEYWORDS:

Authors:

Wendy Beer, Director, Head of Business Consulting, Wells Fargo Prime Services

Organizations:
  • Wells Fargo Prime Services

Summary:

All business relationships are driven by the belief that both sides will receive a mutual benefit that will allow for a long term sustainable partnership between the firms. For a prime brokerage /alternative asset manager relationship this principle is no different. An alternative asset manager (“AAM”) looks for certain services from its prime broker (“PB”): financing, access to balance sheet, securities lending, capital introduction, research, corporate access, technology and other services that are essential to the AAM as it deploys its strategy. PBs are looking to generate an attractive after cost return based on the revenue generated from the client vs. usage of financial resources such as balance sheet and capital.