Multi-asset prime brokerage business, Invast Global today announced it has rebranded to 26 Degrees. The company revealed that the rebrand is part of its refocus prime brokerage market in response to the changing regulatory and operating environments.
Gavin White, the CEO of 26 Degrees, said:
Gavin White
We are excited about this opportunity and have made the strategic decision to retire the Invast Global brand and focus 26 Degrees on institutional clients. We’d predicted this shift, and this repositioning future proofs our business to continue to thrive in response to the changing regulatory and operating environments we are seeing unfold.
The official announcement detailed that Prime Services are estimated to be a $20 billion industry which has become increasingly fragmented over the last five years. As the number of global players is decreasing, further reductions are expected with the implementation of the BASEL III/IV regulatory changes.
White stated that the current conditions have presented significant challenges for broker-dealers, emerging hedge funds, and family offices in their efforts to access essential markets and services required to maintain competitiveness in an industry where performance is key. As a result, there is a growing interest in independent prime service providers who possess the necessary expertise, technology, and experience, such as 26 Degrees.
The prime brokerage global market is in a state of flux. This has highlighted the strong position of prime broking independents such as 26 Degrees to step up and support these underserviced market segments.
With the collapse of a number of international banks and the resulting headwinds, we have bolstered our relationships with Tier 1 investment banks including, JP Morgan, Deutsche Bank, NatWest and Morgan Stanley.
According to White, as some Prime Brokers have stepped away from the prime broking business, 26 Degrees has boosted its commitment to the industry. Based on the firm’s calculations, the revenue generated by clients with assets under management (AUM) below US$100 million amounts to approximately $3.2 billion, constituting 15.8% of the entire industry. As Tier 1 investment banks reduce their involvement in this market segment, 26 Degrees sees an increasing potential.
Over the next five years, 26 Degrees anticipates a substantial expansion of its market share by strengthening these relationships and leveraging the evolving market landscape, characterized by the departure of traditional investment banks from this particular market segment. This shift creates a void that 26 Degrees is strategically positioned to fill.
White said:
26 Degrees is seizing the opportunity that this shift in Prime Services presents and we are challenging the dominant model in our industry. We are very excited to be modern pioneers of the independent model, providing accessible prime solutions and are stepping up our presence globally as a prime partner of choice.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
