Australia based institutional brokerage Invast Global has announced a major rebrand, with the company now calling itself 26 Degrees Global Markets.

The company said that the 26 Degrees moniker refers to the 26th degree latitude which runs parallel across the widest breadth of Australia dividing it from North to South. It crosses the Indian Ocean to meet the Cradle of Humanity in South Africa, where humankind evolved.

The company’s legal name will remain as Invast Financial Services Pty Ltd, at least for the time being. Invast is a subsidiary of Japanese investment outfit Inv Inc (TYO:7338).

Invast / 26 Degrees stated that the rebranding is part of the group repositioning itself to gain market share in the billion dollar Prime Brokerage industry as broker-dealers, hedge funds and family offices are “left out in the cold” by the shakeout in the prime brokerage market. Prime Services, estimated to be a US$20 billion industry and once the domain of global investment bank behemoths, has become increasingly fragmented over the last five years. The number of global players is rapidly diminishing, with further reductions expected as providers implement the BASEL III/IV regulatory changes.

However the changes at Invast / 26 Degrees come as the company has reported a decrease in profitability and cash outflows. Parent INV Inc’s share price recently fell to a 52-week low. For the fiscal year ended March 31, 2023 INV reported operating cash outflows of minus ¥976 million (USD $7.0 million), and the company’s cash balances dropped by 28% from 2022 levels.

Invast / 26 Degrees represents just under half (45%) of INV Inc’s overall revenues, based on nine-months-FY2023 figures. The market cap of the entire INV Inc has fallen to just ¥4.38 billion, or USD $31 million.

The company has been spending money to expand internationally, including in the UK where in late 2022 Invast bought GMO-Z.com, the UK operation of Japanese internet giant GMO, and in Cyprus spearheading EU operations (as well as the home of a large number of Retail FX and CFD brokers).

Gavin White, Invast’s longtime CEO and now CEO of 26 Degrees stated:

“The prime brokerage global market is in a state of flux. This has highlighted the strong position of prime broking independents such as 26 Degrees to step up and support these underserviced market segments.”

“We are excited about this opportunity and have made the strategic decision to retire the Invast Global brand and focus 26 Degrees on institutional clients. We’d predicted this shift, and this repositioning future proofs our business to continue to thrive in response to the changing regulatory and operating environments we are seeing unfold.”

“With the collapse of a number of international banks and the resulting headwinds, we have bolstered our relationships with Tier 1 investment banks including, JP Morgan, Deutsche Bank, NatWest and Morgan Stanley.”

“As some Prime Brokers have chosen to step away from the prime broking space over the past year, our ability to continue to expand and diversify our panel of Prime Broker relationships shows commitment to the industry and also the esteem with which our business is held by the Tier 1 investment banks.”

“26 Degrees is seizing the opportunity that this shift in Prime Services presents and we are challenging the dominant model in our industry. We are very excited to be modern pioneers of the independent model, providing accessible prime solutions and are stepping up our presence globally as a prime partner of choice.”