What do prime brokers service?

http://en.wikipedia.org/wiki/Prime_brokerage Prime brokerage: generic term for bundled servcies by investment banks to hedge funds including custoday- clearing sec lending financing operational support - contact other brokers As hedge funds have proliferated globally through the 1990s and the current decade, prime brokerage has become an increasingly competitive field and an important contributor to the overall profitability of the investment banking business. As of 2006, the most successful investment banks each report over two billion dollars in annual revenue directly attributed to their prime brokerage operations (source: 2006 annual reports of Morgan Stanley and Goldman Sachs). Let's look at the GS prime brokerage.... It is classified into securities services Securities Services provides prime brokerage services, financing services and securities lending services to institutional clients, including hedge funds, mutual funds, pension funds and foundations, and to high-net-worth individuals worldwide, and generates revenues primarily in the form of interest rate spreads or fees. Business Segments The primary products and activities of our business segments are set forth in the following chart: Business Segment/Component Primary Products and Activities 1.Investment Banking: a.Financial Advisory • Mergers and acquisitions advisory services • Financial restructuring advisory services b.Underwriting • Equity and debt underwriting 2.Trading and Principal Investments: a.Fixed Income, Currency and Commodities • Commodities and commodity derivatives, including power generation activities • Credit products, including trading and investing in credit derivatives, investment-grade corporate securities, high-yield securities, bank and secured loans, municipal securities, emerging market and distressed debt, public and private equity securities and real estate • Currencies and currency derivatives • Interest rate products, including interest rate derivatives, global government securities and money market instruments, including matched book positions • Mortgage-related securities and loan products and other asset-backed instruments b.Equities • Equity securities and derivatives • Securities, futures and options clearing services • Specialist and market-making activities in equity securities and options • Insurance activities c.Principal Investments • Principal investments in connection with merchant banking activities • Investment in the convertible preferred stock of Sumitomo Mitsui Financial Group, Inc. • Investment in the ordinary shares of Industrial and Commercial Bank of China Limited 3.Asset Management and Securities Services: a.Asset Management • Asset management, advisory services and investment products (primarily through separate accounts and funds) across all major asset classes, including money markets, fixed income, equities and alternative investments (including hedge funds, private equity, real estate, currencies, commodities and asset allocation strategies), for institutional and individual investors (including high-net-worth clients, as well as retail clients through third-party channels) • Management of merchant banking funds b.Securities Services • Prime brokerage • Financing services • Securities lending