New prime broker strikes marketing support deal for clients

Lighthouse Prime Services, the prime brokerage business recently launched by New York-based investment bank Lighthouse Financial, has struck a deal with Hedge Connection to provide marketing support for its clients ( news story, March 13 ).

Clients of Lighthouse Prime Services will have access to Hedge Connection's marketing support and event platforms, which give hedge funds access to pre-qualified investors, including fund of funds and family offices.

Hedge Connection will also provide an outsourced marketing desk for Lighthouse clients, which will give them a dedicated marketing representative at no cost.

Jamie Caputo, managing director and co-head of prime services at Lighthouse Financial, said the bank was committed to providing capital introduction services. He believes this is an area the traditional prime brokers have pulled back from in recent months.

"Due to the credit markets and TARP restrictions, legacy prime brokers have severely limited the cap intro offering," he said.

Lighthouse Prime Services is running a lean operation using third party providers for a number of key capabilities. The bank aims to provide a cost effective service for small and mid-sized hedge funds which are typically turned away by the larger primes.

Lighthouse uses Goldman Sachs and Penson Financial for electronic execution and clearing services. It also has contracts with research providers IRC Securities and Matrix USA and emerging manager managed account platform Formation Trading Group in addition to Hedge Connection.