Liquid Alternatives

One Complete Solution for Alternative Mutual Funds

Interested in learning more about launching a liquid alternative fund? Looking for a prime broker who can provide a combined financing, servicing and platform access solution for alternative funds?


Prime Services and BNY Mellon offer a complete alternative mutual fund solution that combines prime brokerage, custody and market access in one integrated platform. We can help you manage counterparty risk while improving time to market, maximizing efficiency and streamlining due diligence.

Groundbreaking Solutions for Alternative '40 Act Funds

We offer extensive expertise servicing mutual funds with alternative strategies, providing financing to closed-end funds, and launching and supporting multi-manager funds.


We provide unprecedented control of collateral selection and movements for ’40 Act funds using the tri-party structure to support alternative strategies.

An Industry-Leading Tri-Party Solution

We deliver a unique industry-leading tri-party custody account solution to drive greater efficiency. Our platform leverages the operational integration between prime brokerage and custody by automating collateral movements to and from your custody account. Our complete solution provides access to securities lending, execution, custody and all the servicing and financing functions you need to manage hedge funds, ’40 Act funds or eligible pension funds.


Our comprehensive tri-party custody account solution includes:

  • Pre-negotiated contract agreements and streamlined account setup
  • Cutting edge technology, PrimeConnect40™, automates collateral movements between custodian and prime brokers
  • Full bank custody services including fund administration, accounting and corporate custody
  • A dedicated team with extensive experience with ’40 Act structures

A Wealth of Guidance and Expertise

Education is critical to the continued growth of alternative mutual funds. Investors, asset managers, hedge fund managers, beneficial owners and plan sponsors need to know the distinct opportunities and challenges these funds present—including evolving compliance, regulatory, legal and investment matters.


To enhance industry knowledge about liquid alternatives, clients can take advantage of the ongoing value-added solutions we offer:

  • Assistance to traditional asset managers to identify strategies for alternative products, source hedge funds and access the market.
  • Insights to hedge fund managers and mutual fund companies about various alternative mutual fund structures.
  • Extensive thought leadership and events featuring prominent industry experts sharing insights on liquid alternatives.

Broad Platform Access and Opportunities

Pershing is the industry’s largest global business solutions provider, serving more than 1,500 institutional and retail financial organizations and independent registered investment advisors who represent approximately 5 million active investor accounts.

Gain visibility to investors through the #1 U.S. clearing firm1, supporting broker-dealers, RIAs, banks, insurance companies and self-directed platforms2. Learn more about Pershing's Alternative Investment Solutions.

1 Includes brokerage-based individual and plan accounts as of December 31, 2014.
2 Pershing LLC is the #1 U.S. clearing firm ranked by broker-dealer clients. InvestmentNews 2008-2020.

Related Solutions

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Additional Resources


Why Alts? Why Now?

Discover why alternatives are back in the spotlight and what role they could play for investors in both turbulent times and calmer conditions.


Prime Time: How to Evaluate Your Counterparty Relationships

Having the right combination of prime brokers can help hedge funds better execute their investment strategies – and continuously reviewing their counterparty mix as markets evolve can help position managers for success.