(Reuters) – Goldman Sachs’ long-planned on-line migration of some profitable blue-chip brokerage corporations gained momentum through the pandemic as hedge funds and home-based traders had been unable to fulfill in particular person, whereas different Wall Road banks are taking extra measured motion.
Final July, Goldman Sachs Group Inc launched Marquee Join, providing on-line digital introduction providers for high shoppers. Different blue chip brokers advised Reuters they had been additionally contemplating bringing some blue chip brokerage providers on-line, however one warned that shoppers might be “uninterested in Zoom” available in the market. hope to renew the assembly in particular person as soon as once more vaccinated individuals.
People have future introductory capital providers, during which third events like banks try to match traders with hedge funds. However as many different banking providers have moved to digital platforms, banks are more and more seeking to convey a few of these providers on-line.
Goldman’s Marquee Join hedge fund managers and traders, for instance, create profiles that allocators can use to seek out funds that match their objectives.
Up to now 9 months, the app has signed greater than 900 hedge funds, greater than 600 funding corporations and made greater than 4,500 connections, executives of Goldman’s senior brokerage group advised Reuters.
“Whereas we’ve been engaged on the event of Marquee Join along with our shoppers for the previous few years, the timing of our launch … was fortuitous,” mentioned Isabella Meyer, member of the Capital Initiation Crew and Head of challenge on Marquee Join, including that the pattern of working from dwelling has accelerated utilization.
Different blue chip brokers advised Reuters that whereas they’ve but to launch an analogous product, efforts to see methods to transfer sure providers on-line could also be underway.
“Jefferies continues to leverage expertise to facilitate provide and demand between managers and traders, which incorporates issues on bringing sure options on-line,” mentioned Leor Shapiro, Managing Director and World Head of Capital Intelligence at Jefferies.
Mike Monforth, World Head of Capital Advisory at JP Morgan Chase, mentioned: “We’re at all times on the lookout for digital options. Introducing capital is a precedence space, however we will probably be affected person to make sure that the answer we provide is certainly appreciated by our world clients. “
Citi, Barclays, Morgan Stanley and Credit score Suisse declined to remark.
Conferences the place hedge funds and traders can meet face-to-face are one of many key components of the IPO match. The pandemic has pressured this facet on-line, attracting higher participation.
Shapiro of Jefferies mentioned his flagship convention had grown from round 200 investor attendees the earlier 12 months to round 300 through the pandemic.
Monforth, of JP Morgan, mentioned the financial institution held 47 occasions with greater than 5,500 attendees final 12 months, up from 43 occasions and 1,400 attendees the 12 months earlier than.
Hedge funds have raised extra money with the transfer on-line, including $ 844 billion in capital since March 2020, with $ 6.1 billion in money for brand new traders within the first quarter of 2021, based on knowledge from Hedge Fund Analysis (HFR).
Regardless of all of the touted advantages of utilizing digital instruments, blue chip brokers admit that traders and hedge funds are eager to come back again to in-person conferences.
“There is a little bit of Zoom fatigue,” Monforth mentioned at JP Morgan, including that digital conferences had been there for the lengthy haul alongside face-to-face interactions.
Diana Dieckman of Goldman Sachs, World Head of the Premier Providers Capital Introduction group, mentioned: “All of those instruments are actually on the market, nevertheless it would not change in particular person, so will probably be a hybrid method. sooner or later. . “
Reporting by Maiya Keidan; edited by Megan Davies; Edited by David Gregorio