Key Takeaways
- • Brevan Howard partners earned significantly higher compensation than Eisler directors in 2018: Brevan Howard's 18 partners averaged £3.5m each against distributed profits of £64m, while Eisler Capital's 48 employees averaged £511k with the highest-paid director earning £700k.
- • Brevan Howard's profitability surged in fiscal year ending March 2019: The core partnership (Brevan Howard Asset Management LLP) nearly doubled revenues to £141m and quadrupled profits to £64m, compared to £66m in revenues and £17m in profits the prior year.
- • Eisler Capital achieved strong growth metrics in 2018 despite smaller absolute scale: The firm doubled revenues to £48m and tripled profits to £16m while expanding headcount from 26 to 48 employees, indicating improved operational efficiency.
- • Compensation disparity reflects partnership structure differences: Brevan Howard partners benefit from profit-sharing arrangements yielding £3.5m average payouts, whereas Eisler operates as a limited company with salaried and bonus-based compensation, resulting in lower average employee pay (£145k for non-partner staff at Brevan Howard Services versus £511k across Eisler's broader workforce).
- • Non-partner staff at Brevan Howard received substantially lower compensation: Brevan Howard Services paid 51 employees and secondees an average of £145k each, a stark contrast to the £3.5m partner distributions and highlighting significant internal pay stratification.
Summary
Based on 2018 regulatory filings, Brevan Howard and Eisler Capital Management demonstrated divergent compensation models reflecting their different organizational structures and profitability levels. Brevan Howard Asset Management LLP, the core partnership vehicle, posted exceptional results for the fiscal year ending March 2019: revenues climbed from £66m to £141m, while profits available for distribution among members increased from £17m to £64m. With 18 partners on the roster, this translated to approximately £3.5m per partner in distributable profits. Additionally, a separate regulatory filing indicated that Brevan Howard employed 16 code staff (senior investment professionals) during the period, collectively compensated at £59m, or £3.7m individually.
The compensation picture for non-partner personnel at Brevan Howard was materially different. Brevan Howard Services, a related operating entity, paid 51 employees and secondees a combined £7.4m in 2018, averaging £145k per individual. This substantial gap between partner and non-partner compensation reflects standard hedge fund economics, where profit-sharing arrangements concentrate returns among senior members while junior and support staff receive fixed salaries and performance bonuses.
Eisler Capital Management, by contrast, operated under a limited company structure with broader workforce participation in financial success. The firm's 2018 accounts showed revenues doubling to £48m and profits tripling to £16m. The company's employee base expanded significantly, growing from 26 to 48 staff members. Total compensation across the organization reached £25m, yielding an average of £511k per employee. The highest-paid director—likely Edward Eisler, the firm's founder—earned £700k during the year. This model distributed compensation more evenly across the organization relative to Brevan Howard's tiered structure.
The comparison underscores fundamental differences in hedge fund compensation architecture. Brevan Howard's partnership model concentrates significant wealth among a small number of senior partners, while Eisler's approach, at least as reflected in its 2018 structure, allocated a higher proportion of profits to a broader employee base. Neither approach is inherently superior; rather, they reflect strategic choices regarding talent retention, organizational culture, and capital allocation that hedge funds employ to compete for talent in London's competitive macro investing landscape.
The compensation picture for non-partner personnel at Brevan Howard was materially different. Brevan Howard Services, a related operating entity, paid 51 employees and secondees a combined £7.4m in 2018, averaging £145k per individual. This substantial gap between partner and non-partner compensation reflects standard hedge fund economics, where profit-sharing arrangements concentrate returns among senior members while junior and support staff receive fixed salaries and performance bonuses.
Eisler Capital Management, by contrast, operated under a limited company structure with broader workforce participation in financial success. The firm's 2018 accounts showed revenues doubling to £48m and profits tripling to £16m. The company's employee base expanded significantly, growing from 26 to 48 staff members. Total compensation across the organization reached £25m, yielding an average of £511k per employee. The highest-paid director—likely Edward Eisler, the firm's founder—earned £700k during the year. This model distributed compensation more evenly across the organization relative to Brevan Howard's tiered structure.
The comparison underscores fundamental differences in hedge fund compensation architecture. Brevan Howard's partnership model concentrates significant wealth among a small number of senior partners, while Eisler's approach, at least as reflected in its 2018 structure, allocated a higher proportion of profits to a broader employee base. Neither approach is inherently superior; rather, they reflect strategic choices regarding talent retention, organizational culture, and capital allocation that hedge funds employ to compete for talent in London's competitive macro investing landscape.
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