Volatility drives institutional investor shift to boutique brokers
'Unlike at some of the larger institutions, independent prime brokerage offerings focus on providing a seamless and tailored client experience, irrespective of whether they have $1 million or $100 million,' says Klynhout. 'Personalised service ensures asset managers can remain agile and responsive to market conditions whilst knowing they're going to be supported through the decisions they make.'
The evolving role of boutique firms is not just a matter of scale, but of scope. Lazarus reports a growing range of use cases: family offices hedging structured investments, corporates managing treasury exposures, and broker-dealers running internal portfolios. Niche strategies are gaining traction across Asia, the Middle East and Europe.
Tailored model
Rather than offering a one-size-fits-all service, boutique brokers are tailoring models to client strategy. 'The nature and importance of a prime brokerage relationship can have significant ramifications on the success of a portfolio,' Klynhout says. 'A bespoke model does not take this for granted and instead prioritises client success.'
Australia is becoming a strategic base for this kind of model. Lazarus' Sydney headquarters puts it in a strong position to service emerging financial centres in Asia and the Middle East during local hours. Unlike larger institutions that focus on balance sheet returns, firms like Lazarus position their value around global access and consistent service for institutional portfolios of $1 million to $500 million.
The client base itself is also broadening. 'The prime brokerage client base has grown beyond traditional hedge funds,' Klynhout says. 'Lazarus is working with family offices, broker-dealers and emerging managers looking for cost-efficient, high-quality, and swift support.'
What began as a response to disruption is now evolving into a broader realignment. For many institutional investors, the old default is no longer the default. The future of prime brokerage may not belong to the biggest – but to the most adaptable.
Global casualties
That shift is also playing out globally. Japanese investment bank Nomura, one of the biggest casualties of the Archegos collapse, is now tentatively re-entering parts of the prime brokerage space it abandoned in 2021.
The bank lost $2.9 billion when Archegos imploded and is only now rebuilding its prime business in the US and Europe under new leadership. Executives hope to triple revenues from the division, but insiders say the renewed push is cautious and tightly risk-controlled.
Industry-wide revenues from prime brokerage hit a record $27 billion in 2024, driven by multi-strategy hedge funds and high equities prices. But that growth has brought heightened scrutiny. Regulators in the UK and US are reviewing how banks manage risk across their prime units, citing concerns over market concentration and oversight—risks that many independent providers are structured to mitigate.
Nomura, for its part, says it has 'put Archegos behind us', but its gradual re-entry underscores how far the bulge brackets have pulled back. With banks now more selective, institutional investors are increasingly turning to agile, independent brokers who can move faster and serve them better.
Stepping into the gap
Market observers note that nonbank providers, like the boutique prime brokers gaining ground in Australia, are stepping into roles once dominated by global banks. McKinsey's Global Private Markets Report 2025 highlights how institutional investors are drawn to flexible, specialised strategies amid volatility, particularly in private debt.
'In uncertain market conditions, the security derived from debt's privileged position in the capital structure has appealed to institutional investors,' the report says.
These nonbank entities offer integrated services such as prime brokerage and custody, aligning with investors' need for agility and personalised risk management.
'The rapid run-up in global interest rates from 2022 to 2023 (an increase of more than 500 basis points in the United States) shook private equity to the core,' McKinsey says, citing inflation and geopolitical risk as ongoing pressures.
Boutique prime brokers are capitalising on that turbulence, helping institutional clients execute niche strategies with precision and speed.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Advertiser
14 hours ago
- The Advertiser
Honda Australia not worried about Chinese competition
Honda Australiasays it has what it takes to compete with the growing number of Chinese brands in our market, as it looks to rebuild after several tough sales years. While Honda is pitched – and priced – as a more premium brand than many Japanese rivals, it's facing increased competition from new brands from China. Chinese automakers are aiming ever higher, expanding beyond the cheap and cheerful offerings they're known for to more premium products – witness the introduction of Geely's Zeekr marque, MG offering products from the IM Motors premium brand, GWM offering pricier Tank SUVs, and BYD readying its more luxurious Denza offshoot for Australia. But while Chinese brands are aiming upmarket, Honda Australia says it will focus on its plan regardless of who enters the local scene, with managing director Rob Thorp confident the automaker is on track for growth in Australia. CarExpert can save you thousands on a new car. Click here to get a great deal. "It's a competitive landscape – so whether it is the Chinese competitors, or the Koreans or the Germans – or whatever it may be, that just becomes the competitive landscape we have to deal with," Mr Thorp told CarExpert. "It's a free market, they've got the right opportunity to compete here, it is what it is. "I think for us, we're very clear on our proposition in the markets and what our competitive strengths are. I think the challenge we have is to ensure that enough consumers know that." What are those strengths the Honda boss believes will hold the brand in good shape in Australia over the next decade? "I think of it from the quality of the product that you see, the quality of the customer care and service you receive, the longevity of the models and the relationship we have with you during the ownership period," he explained. "So we're very comfortable we've got the ingredients to be successful in this market – but they're competitors, whatever and wherever they come from – that's just the environment we have to work in." The Japanese brand is expanding its hybrid lineup, which will include the introduction of the hybrid-powered Prelude sports car here next year, and plans to launch its first electric vehicle (EV) before the end of 2026, too. It has, however, ruled out bringing its luxury brand sold overseas, Acura, to local showrooms. Honda posted its lowest sales on record in this country in 2022 and 2023, following the move to a fixed-price agency model, a reduction in the number of dealers in its network, and the discontinuation of more affordable products like the Jazz. The number of brands in Australia has continue to increase, making our market – already saturated given the number of brands competing for sales of only 1.2 million vehicles each year – even more cut-throat. It led chief operating officer of Chery-owned Omoda Jaecoo, Roy Muñoz, to recently declare more brands benefited new-car buyers and only improved showroom offerings through an ultra-competitive climate. MORE: Honda Australia's first EV to launch in 2026, but what will it be? MORE: Australia doesn't have too many car brands, says one of its newest arrivals Content originally sourced from: Honda Australiasays it has what it takes to compete with the growing number of Chinese brands in our market, as it looks to rebuild after several tough sales years. While Honda is pitched – and priced – as a more premium brand than many Japanese rivals, it's facing increased competition from new brands from China. Chinese automakers are aiming ever higher, expanding beyond the cheap and cheerful offerings they're known for to more premium products – witness the introduction of Geely's Zeekr marque, MG offering products from the IM Motors premium brand, GWM offering pricier Tank SUVs, and BYD readying its more luxurious Denza offshoot for Australia. But while Chinese brands are aiming upmarket, Honda Australia says it will focus on its plan regardless of who enters the local scene, with managing director Rob Thorp confident the automaker is on track for growth in Australia. CarExpert can save you thousands on a new car. Click here to get a great deal. "It's a competitive landscape – so whether it is the Chinese competitors, or the Koreans or the Germans – or whatever it may be, that just becomes the competitive landscape we have to deal with," Mr Thorp told CarExpert. "It's a free market, they've got the right opportunity to compete here, it is what it is. "I think for us, we're very clear on our proposition in the markets and what our competitive strengths are. I think the challenge we have is to ensure that enough consumers know that." What are those strengths the Honda boss believes will hold the brand in good shape in Australia over the next decade? "I think of it from the quality of the product that you see, the quality of the customer care and service you receive, the longevity of the models and the relationship we have with you during the ownership period," he explained. "So we're very comfortable we've got the ingredients to be successful in this market – but they're competitors, whatever and wherever they come from – that's just the environment we have to work in." The Japanese brand is expanding its hybrid lineup, which will include the introduction of the hybrid-powered Prelude sports car here next year, and plans to launch its first electric vehicle (EV) before the end of 2026, too. It has, however, ruled out bringing its luxury brand sold overseas, Acura, to local showrooms. Honda posted its lowest sales on record in this country in 2022 and 2023, following the move to a fixed-price agency model, a reduction in the number of dealers in its network, and the discontinuation of more affordable products like the Jazz. The number of brands in Australia has continue to increase, making our market – already saturated given the number of brands competing for sales of only 1.2 million vehicles each year – even more cut-throat. It led chief operating officer of Chery-owned Omoda Jaecoo, Roy Muñoz, to recently declare more brands benefited new-car buyers and only improved showroom offerings through an ultra-competitive climate. MORE: Honda Australia's first EV to launch in 2026, but what will it be? MORE: Australia doesn't have too many car brands, says one of its newest arrivals Content originally sourced from: Honda Australiasays it has what it takes to compete with the growing number of Chinese brands in our market, as it looks to rebuild after several tough sales years. While Honda is pitched – and priced – as a more premium brand than many Japanese rivals, it's facing increased competition from new brands from China. Chinese automakers are aiming ever higher, expanding beyond the cheap and cheerful offerings they're known for to more premium products – witness the introduction of Geely's Zeekr marque, MG offering products from the IM Motors premium brand, GWM offering pricier Tank SUVs, and BYD readying its more luxurious Denza offshoot for Australia. But while Chinese brands are aiming upmarket, Honda Australia says it will focus on its plan regardless of who enters the local scene, with managing director Rob Thorp confident the automaker is on track for growth in Australia. CarExpert can save you thousands on a new car. Click here to get a great deal. "It's a competitive landscape – so whether it is the Chinese competitors, or the Koreans or the Germans – or whatever it may be, that just becomes the competitive landscape we have to deal with," Mr Thorp told CarExpert. "It's a free market, they've got the right opportunity to compete here, it is what it is. "I think for us, we're very clear on our proposition in the markets and what our competitive strengths are. I think the challenge we have is to ensure that enough consumers know that." What are those strengths the Honda boss believes will hold the brand in good shape in Australia over the next decade? "I think of it from the quality of the product that you see, the quality of the customer care and service you receive, the longevity of the models and the relationship we have with you during the ownership period," he explained. "So we're very comfortable we've got the ingredients to be successful in this market – but they're competitors, whatever and wherever they come from – that's just the environment we have to work in." The Japanese brand is expanding its hybrid lineup, which will include the introduction of the hybrid-powered Prelude sports car here next year, and plans to launch its first electric vehicle (EV) before the end of 2026, too. It has, however, ruled out bringing its luxury brand sold overseas, Acura, to local showrooms. Honda posted its lowest sales on record in this country in 2022 and 2023, following the move to a fixed-price agency model, a reduction in the number of dealers in its network, and the discontinuation of more affordable products like the Jazz. The number of brands in Australia has continue to increase, making our market – already saturated given the number of brands competing for sales of only 1.2 million vehicles each year – even more cut-throat. It led chief operating officer of Chery-owned Omoda Jaecoo, Roy Muñoz, to recently declare more brands benefited new-car buyers and only improved showroom offerings through an ultra-competitive climate. MORE: Honda Australia's first EV to launch in 2026, but what will it be? MORE: Australia doesn't have too many car brands, says one of its newest arrivals Content originally sourced from: Honda Australiasays it has what it takes to compete with the growing number of Chinese brands in our market, as it looks to rebuild after several tough sales years. While Honda is pitched – and priced – as a more premium brand than many Japanese rivals, it's facing increased competition from new brands from China. Chinese automakers are aiming ever higher, expanding beyond the cheap and cheerful offerings they're known for to more premium products – witness the introduction of Geely's Zeekr marque, MG offering products from the IM Motors premium brand, GWM offering pricier Tank SUVs, and BYD readying its more luxurious Denza offshoot for Australia. But while Chinese brands are aiming upmarket, Honda Australia says it will focus on its plan regardless of who enters the local scene, with managing director Rob Thorp confident the automaker is on track for growth in Australia. CarExpert can save you thousands on a new car. Click here to get a great deal. "It's a competitive landscape – so whether it is the Chinese competitors, or the Koreans or the Germans – or whatever it may be, that just becomes the competitive landscape we have to deal with," Mr Thorp told CarExpert. "It's a free market, they've got the right opportunity to compete here, it is what it is. "I think for us, we're very clear on our proposition in the markets and what our competitive strengths are. I think the challenge we have is to ensure that enough consumers know that." What are those strengths the Honda boss believes will hold the brand in good shape in Australia over the next decade? "I think of it from the quality of the product that you see, the quality of the customer care and service you receive, the longevity of the models and the relationship we have with you during the ownership period," he explained. "So we're very comfortable we've got the ingredients to be successful in this market – but they're competitors, whatever and wherever they come from – that's just the environment we have to work in." The Japanese brand is expanding its hybrid lineup, which will include the introduction of the hybrid-powered Prelude sports car here next year, and plans to launch its first electric vehicle (EV) before the end of 2026, too. It has, however, ruled out bringing its luxury brand sold overseas, Acura, to local showrooms. Honda posted its lowest sales on record in this country in 2022 and 2023, following the move to a fixed-price agency model, a reduction in the number of dealers in its network, and the discontinuation of more affordable products like the Jazz. The number of brands in Australia has continue to increase, making our market – already saturated given the number of brands competing for sales of only 1.2 million vehicles each year – even more cut-throat. It led chief operating officer of Chery-owned Omoda Jaecoo, Roy Muñoz, to recently declare more brands benefited new-car buyers and only improved showroom offerings through an ultra-competitive climate. MORE: Honda Australia's first EV to launch in 2026, but what will it be? MORE: Australia doesn't have too many car brands, says one of its newest arrivals Content originally sourced from:
7NEWS
3 days ago
- 7NEWS
Gotta trash them all: McDonald's bins Pokemon promotion
McDonald's Japan has cancelled a Happy Meal campaign that came with coveted Pokemon cards, apologising after resellers rushed to buy the meals and then discarded the food, leaving rubbish outside stores. The meals, called Happy Sets in Japan, were meant for children. They came with a toy, such as a tiny plastic Pikachu, and a Pokemon card. They sold out in a day, according to Japanese media reports. Mounds of wasted food were found near the stores. 'We do not believe in abandoning and discarding food. This situation goes against our longtime philosophy that we have cherished as a restaurant to 'offer a fun dining experience for children and families',' the company said. 'We sincerely accept that our preparations had not been adequate.' McDonald's said it was working on ways to prevent such a situation happening again, such as limiting the number of meals each person can buy and ending online orders. It said it might deny service to customers who fail to abide by the rules. Collecting Pokemon cards is popular among adults and children in many places, with the most popular cards selling for $US1000 ($1500) or more. Unusually large crowds were seen flocking to McDonald's stores when the meals with Pokemon cards went on sale. The cards were later being resold for up to tens of thousands of yen (hundreds of dollars) online. McDonald's has been selling Happy Meals for more than 40 years. In Japan, they usually sell for 510 yen ($5.30).
The Advertiser
3 days ago
- The Advertiser
Gotta trash them all: McDonald's bins Pokemon promotion
Fast-food chain McDonald's Japan has cancelled a Happy Meal campaign that came with coveted Pokemon cards, apologising after resellers rushed to buy the meals and then discarded the food, leaving rubbish outside stores. The meals, called Happy Sets in Japan, were meant for children. They came with a toy, such as a tiny plastic Pikachu, and a Pokemon card. They sold out in a day, according to Japanese media reports. Mounds of wasted food were found near the stores. "We do not believe in abandoning and discarding food. This situation goes against our longtime philosophy that we have cherished as a restaurant to 'offer a fun dining experience for children and families'," the company said on Monday. "We sincerely accept that our preparations had not been adequate." McDonald's said it was working on ways to prevent such a situation happening again, such as limiting the number of meals each person can buy and ending online orders. It said it might deny service to customers who fail to abide by the rules. Collecting Pokemon cards is popular among adults and children in many places, with the most popular cards selling for $US1000 ($A1500) or more. Unusually large crowds were seen flocking to McDonald's stores when the meals with Pokemon cards went on sale. The cards were later being resold for up to tens of thousands of yen (hundreds of dollars) online. McDonald's has been selling Happy Meals for more than 40 years. In Japan, they usually sell for 510 yen ($A5.30). Fast-food chain McDonald's Japan has cancelled a Happy Meal campaign that came with coveted Pokemon cards, apologising after resellers rushed to buy the meals and then discarded the food, leaving rubbish outside stores. The meals, called Happy Sets in Japan, were meant for children. They came with a toy, such as a tiny plastic Pikachu, and a Pokemon card. They sold out in a day, according to Japanese media reports. Mounds of wasted food were found near the stores. "We do not believe in abandoning and discarding food. This situation goes against our longtime philosophy that we have cherished as a restaurant to 'offer a fun dining experience for children and families'," the company said on Monday. "We sincerely accept that our preparations had not been adequate." McDonald's said it was working on ways to prevent such a situation happening again, such as limiting the number of meals each person can buy and ending online orders. It said it might deny service to customers who fail to abide by the rules. Collecting Pokemon cards is popular among adults and children in many places, with the most popular cards selling for $US1000 ($A1500) or more. Unusually large crowds were seen flocking to McDonald's stores when the meals with Pokemon cards went on sale. The cards were later being resold for up to tens of thousands of yen (hundreds of dollars) online. McDonald's has been selling Happy Meals for more than 40 years. In Japan, they usually sell for 510 yen ($A5.30). Fast-food chain McDonald's Japan has cancelled a Happy Meal campaign that came with coveted Pokemon cards, apologising after resellers rushed to buy the meals and then discarded the food, leaving rubbish outside stores. The meals, called Happy Sets in Japan, were meant for children. They came with a toy, such as a tiny plastic Pikachu, and a Pokemon card. They sold out in a day, according to Japanese media reports. Mounds of wasted food were found near the stores. "We do not believe in abandoning and discarding food. This situation goes against our longtime philosophy that we have cherished as a restaurant to 'offer a fun dining experience for children and families'," the company said on Monday. "We sincerely accept that our preparations had not been adequate." McDonald's said it was working on ways to prevent such a situation happening again, such as limiting the number of meals each person can buy and ending online orders. It said it might deny service to customers who fail to abide by the rules. Collecting Pokemon cards is popular among adults and children in many places, with the most popular cards selling for $US1000 ($A1500) or more. Unusually large crowds were seen flocking to McDonald's stores when the meals with Pokemon cards went on sale. The cards were later being resold for up to tens of thousands of yen (hundreds of dollars) online. McDonald's has been selling Happy Meals for more than 40 years. In Japan, they usually sell for 510 yen ($A5.30). Fast-food chain McDonald's Japan has cancelled a Happy Meal campaign that came with coveted Pokemon cards, apologising after resellers rushed to buy the meals and then discarded the food, leaving rubbish outside stores. The meals, called Happy Sets in Japan, were meant for children. They came with a toy, such as a tiny plastic Pikachu, and a Pokemon card. They sold out in a day, according to Japanese media reports. Mounds of wasted food were found near the stores. "We do not believe in abandoning and discarding food. This situation goes against our longtime philosophy that we have cherished as a restaurant to 'offer a fun dining experience for children and families'," the company said on Monday. "We sincerely accept that our preparations had not been adequate." McDonald's said it was working on ways to prevent such a situation happening again, such as limiting the number of meals each person can buy and ending online orders. It said it might deny service to customers who fail to abide by the rules. Collecting Pokemon cards is popular among adults and children in many places, with the most popular cards selling for $US1000 ($A1500) or more. Unusually large crowds were seen flocking to McDonald's stores when the meals with Pokemon cards went on sale. The cards were later being resold for up to tens of thousands of yen (hundreds of dollars) online. McDonald's has been selling Happy Meals for more than 40 years. In Japan, they usually sell for 510 yen ($A5.30).
