Prime Broker Hiring Uptick
With hedge funds showing signs of life, banks are polishing up their prime broking arms. The Wall Street Journal reports that Citigroup has added 18 people to its prime broking business so far this year and that Bank of America/Merrill Lynch intends to add 40.
A month ago eFinancialCareers News picked up indications of New York-based prime broker hires at Goldman Sachs.
The return to prime broking recruitment comes amidst a shakeup in the sector which has seen the big established players (Goldman Sachs and Morgan Stanley) suffer, and almost everywhere else benefit. This is generating movement. Last month, Morgan Stanley appeared to dump Stu Hendel and hired Alex Erlich from UBS to replace him as head of prime brokerage. Deutsche Bank cited prime broking as a strong growth area in its first quarter report and according to a recent presentation by Alliance Bernstein analysts, Deutsche, together with Credit Suisse, BNP Paribas and custodians are all growing in the sector.