Prime Factor Capital Is Shutting Down: Lack of Capital Cited as Prime Factor

The firm became Britain's first FCA-approved crypto hedge fund last July.

Jul 23, 2020 at 3:33 p.m. UTC
Updated Sep 14, 2021 at 9:34 a.m. UTC

Prime Factor Capital has exited the cryptocurrency investments game less than a year after becoming the first regulated British crypto hedge fund to gain approval.

  • The alternative assets manager, founded in 2018, failed to attract many institutional investors during its two-year run and is shutting down completely, according to a report by Financial News.
  • Founded by BlackRock alumni, the firm became Britain's first approved crypto hedge fund in July 2019 when it secured a Financial Conduct Authority (FCA) license to manage in excess of 100 million euros. 
  • That wasn’t enough to lure big fish investors, however, and neither was the firm’s claim to deliver existing clients a 4% average monthly return, CEO Nic Niedermowwe told Financial News.
  • FCA records show Prime Factor Capital’s authorization expired on June 25.


The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.