Prime brokerage jobs are just one of the many career options available in the finance industry. Those who choose to work in prime brokerage are essentially working in the hedge fund industry. Preparing to be a prime broker, which is responsible for lending money and clearing the highly complex trades executed by hedge funds, or taking on a role in the back office, which is responsible for accounting and administration, can all be done within the prime brokerage industry. In addition, as the importance of transparency in the financial markets grows, hedge funds continue to work with more than one prime brokerage firm, increasing the number of opportunities available.
Prime brokerage jobs offer a wide range of opportunities. Not only are there various roles that a prime brokerage professional can fill, but there are also various places where a prime brokerage professional can work. Many of the world’s largest financial institutions, such as investment banks, have prime brokerage divisions. In a division dedicated to servicing hedge funds, employees can be a part of something big while still feeling separate. There are also independent prime brokerages that offer similar services to the larger banks but serve a more specialized market.
A relationship manager is one of the many high-paying brokerage jobs. This individual could be an important member of the management team. This position is primarily concerned with relationship depth, including the development, maintenance, and enhancement of relationships with hedge funds and even investors. Because money, investment strategies, and client lists will be exchanged, there must be a level of earned trust between the hedge fund and the broker, making a relationship manager one of the most high-profile prime brokerage jobs.
A risk manager is another important member of the team and one of the prime brokerage jobs. Hedge funds frequently carry out complex and risky financial transactions. Because the trade is cleared by the broker, the risk manager must evaluate the trades based on the hedge fund’s structure and clearly communicate the risks involved.
A hedge fund may enter into a trade that will lock up money for months at a time, and if the firm needs to access that money, it is the risk manager’s responsibility to communicate those options clearly. A hedge fund’s trading limits are usually set based on factors like the value of its assets under management, as well as the firm’s trading strategy and history. The risk manager is responsible for ensuring that the hedge fund stays within those parameters.