Key Takeaways
- • Prime brokerage revenues at major Wall Street banks surged in 2025, with the six largest US banks generating a record $593 billion in total revenue, up 6% year over year, according to available reporting.
- • Hedge fund borrowing from banks has roughly tripled since 2020, and financing income has made prime brokerage one of the sector's most important revenue lines.
- • Goldman Sachs' financing revenue rose 62% to $4.5 billion, per reporting summarized in the available coverage.
- • Elevated market volatility and near-record hedge fund leverage drove the gains, with managers posting double-digit returns in 2025.
- • Reporting indicates nearly 30% of hedge fund managers have experienced price increases from their prime brokers, a point of pressure for allocators to monitor.
Summary
Wall Street's largest investment banks reported record prime brokerage revenues as hedge funds expanded borrowing and leverage. Coverage from multiple outlets, including the Financial Times, indicates that hedge funds' borrowing from banks has tripled since 2020, and that financing has become one of the most lucrative businesses on the Street.
According to reporting summarized in the available coverage, the six largest US banks generated a record $593 billion in revenue in 2025, a 6% year-over-year increase that surpassed all previous years. Prime brokerage revenues surged across major banks in 2025 as hedge funds used near-record leverage to achieve double-digit gains. Goldman Sachs' financing revenue rose 62% to $4.5 billion, and one account cited a 51% jump in prime services revenue, which analysts attribute largely to greater leverage across a concentrated group of dominant banks.
Elevated market volatility also supported trading and financing activity. Barclays research cited by coverage noted that the largest hedge funds continue to grow, scaling across geographies, products and strategies. A separate industry study found that nearly 30% of managers reported price increases from their prime brokers, an issue relevant to fund cost structures.
The available material is limited, as the original article could not be retrieved, so figures above reflect headline and snippet-level reporting and should be verified against primary sources before use in investment decisions.
According to reporting summarized in the available coverage, the six largest US banks generated a record $593 billion in revenue in 2025, a 6% year-over-year increase that surpassed all previous years. Prime brokerage revenues surged across major banks in 2025 as hedge funds used near-record leverage to achieve double-digit gains. Goldman Sachs' financing revenue rose 62% to $4.5 billion, and one account cited a 51% jump in prime services revenue, which analysts attribute largely to greater leverage across a concentrated group of dominant banks.
Elevated market volatility also supported trading and financing activity. Barclays research cited by coverage noted that the largest hedge funds continue to grow, scaling across geographies, products and strategies. A separate industry study found that nearly 30% of managers reported price increases from their prime brokers, an issue relevant to fund cost structures.
The available material is limited, as the original article could not be retrieved, so figures above reflect headline and snippet-level reporting and should be verified against primary sources before use in investment decisions.
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