Partners at hedge fund Brevan Howard shared £105m last year
How much do you earn as a partner at hedge fund Brevan Howard?
Needless to say, it's complicated. Hedge funds don't disclose their compensation globally but they do register often opaque and highly retrospective accounts with the UK's Companies House.
Accounts for Brevan Howard Asset Management LLP for the year ending March 2022 have just been registered. They show that Brevan Howard's 17 partners shared £105m ($127m) last year, including £82m in remuneration and a further £23m in profits. That's around £6m each.
This was a bit of a comedown from the previous year, when 17 partners shared £123m, including £43m in remuneration and £80m in profits. The implication seems to be that Brevan Howard paid its partners more in salary as their profit shares fell last year.
Unfortunately, it's not that simple. Brevan Howard's list of 17 partners includes various corporate entities. They encompass Brevan Howard Asset Management Services Ltd, which employs all its non-partner employees and which has yet to file its accounts (late). These 'corporate members' likely received the lion's share of the partners' profit allocation in both years.
What is clear, though, is that profits at Brevan Howard fell in the year to March '22. - They were £105m versus £130m in '21. Revenues were also down, from £170m to £144m.
The comparatively bum year came as Brevan Howard indulged in some big hiring. Overall headcount numbers aren't given in the partner report but the fund has been expanding under chief executive Aron Landy, who was appointed by Alan Howard in 2019. Last year's recruits included talent scouts to add new portfolio manager talent.
It will be another year before we get a perspective on profits at Brevan Howard for the remaining nine months of 2022, but - new hiring not-withstanding - they're likely to be better than in 2021: the $10bn Brevan Howard Master fund and the $12bn Alpha Strategies fund were reportedly up 20% and 28% respectively last year.
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