Balance Sheet Allocation and Pricing

The problem

Prime Services needed a clearer understanding of the balance sheet allocated to individual hedge fund clients, and the returns generated by those relationships, to inform pricing decisions.

What I owned

I designed a new client-level balance-sheet allocation methodology that enabled more accurate return-on-assets analysis and informed deal renegotiations.

How I approached it

• Developed the allocation methodology at the individual client level.
• Connected client economics to pricing and financing analysis.
• Used the resulting analysis to inform deal renegotiations with hedge fund clients.