[ A D V E R T O R I A L ]
Mirae Asset enters prime brokerage business
Global Custodian speaks to Robert Akeson , head of equity prime brokerage for Mirae Asset Securities ( USA ), on its recent move into the US prime brokerage market .
Global Custodian : Can you tell us about Mirae ? Robert Akeson : Mirae Asset Financial Group is South Korea ’ s leading non-bank financial services firm . As of 30 June , 2018 , the group ’ s asset management businesses had approximately $ 391 billion of total assets under management . Its various broker-dealer subsidiaries and affiliates had approximately $ 7.6 billion in equity capital . We operate in 15 country markets on five continents .
GC : What has prompted the move into prime brokerage ? RA : In recent years , Mirae Asset Financial Group has made several important launches and acquisitions geared toward the investment management industry , including increasing the pace of allocations to hedge funds . In late 2016 , $ 250 million of permanent capital was placed with Mirae Asset Securities ( USA ), with additional infusions likely as the business grows . With this capital , we entered the prime brokerage , securities lending , repo , correspondent clearing , agency execution , corporate access and foreign research distribution businesses in the US . Thus far , we have accumulated $ 45 billion in financing balances and work with nearly 150 counterparties , hedge funds and broker-dealers . The firm is hopeful that the prime brokerage business can assist in the asset allocation efforts by making referrals . ised prime broker will be well served by Mirae : we have no Client Services “ 800 numbers ” and instead rely on a personal approach to client service , at the same time we sustain considerable capacity . All this translates , into highly favourable rates for our target clientele . We are targeting emerging and small hedge managers who operate long / short , multi-strategy and certain fixed income strategies . This sector of the hedge fund market has been especially overlooked and underserved by the bulge bracket prime brokers .
GC : What is it that gives Mirae Asset Securities an advantage in this competitive arena ? RA : Our competitive advantage stems from the financial strength and reach of our parent , and the collective experience and knowledge of our prime brokerage Team . Our goal is to build a leading global boutique built around high-touch servicing and customisation , while leveraging the vast resources of the Mirae Family of affiliates . Also , since we do not roll-up to a bank holding company , Basel III and many of the features of Dodd-Frank do not directly apply to us . As a result , we have more flexibility in how we can use our balance sheet . With this flexibility , we are well positioned to service emerging and smaller hedge fund managers . We think that these managers are being virtually squeezed out of the public markets by the larger prime brokers . In addition , we are reviewing how best to enter the asset allocation business with hedge funds in the US . Mirae is no stranger to investing in alternatives . In recent years , we have annually placed
GC : Which sectors of the hedge fund market do you anticipate seeing the greatest benefit from working with Mirae ? RA : Hedge fund managers that are looking for customised service strategy and special attention from a well-capitalapproximately $ 1.5 billion with P / E managers . On the hedge fund side , the firm has placed nearly $ 400 million in certain feeder structures in Korea and $ 130 million in hedge funds through fund of funds in the US . Over-time Mirae hopes to place $ 1 billion with hedge fund managers that they have gotten to know .
GC : How does technology make a difference in winning and retaining clients ? RA : Technology ties all our business components together . Mirae ’ s technology offering helps hedge fund managers mitigate risk across their businesses . Our lead technology partner is FIS , a $ 30 billion market cap public company and leader in the information services arena . The FIS platform automates and streamlines critical operational tasks into a single platform , with solutions for trading , securities finance , compliance , risk , middle- and back-office services , corporate actions , tax . This facilitates operational efficiency and reduces risk — especially important for emerging and small hedge fund managers . We also partner with PortfolioShop for their solutions related to portfolio management software and solutions systems . Our partnership offers hedge fund managers seamless , straight-through processing of trading information , regardless of counterparty . Easy to navigate and with a wide selection of daily updated on-demand reports are available to Mirae clients for shadow accounting , performance measurement and client reporting .
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