A London-based hedge fund founded by two former star traders from the US giant Citadel has revealed a staggering payout to its top earner, underlining the immense profitability of its strategies. Ilex Capital paid its highest-earning member £78.4 million for the 2023 financial year, according to newly filed accounts.
From Citadel to London Success Story
The fund, Ilex Capital LLP, was established in 2019 by Pierre de Saab and Joshua Rosen. Both men had built their reputations at Citadel's London office, one of the world's most formidable multi-strategy hedge funds. Their venture quickly attracted attention and capital from sophisticated investors.
Recent filings with Companies House show the fund's rapid ascent. For the year ending 31 December 2023, the partnership's total profit before member remuneration soared to £179.5 million. This represented a dramatic increase from the £35.7 million profit reported for the previous 15-month accounting period.
Soaring Assets and Strategic Performance
The driver behind this explosive profit growth was a significant increase in assets under management and strong performance. Ilex Capital operates a multi-strategy approach, engaging in various trading activities across global markets. The firm's success in these complex strategies has clearly resonated with investors.
The fund's total assets climbed to £1.36 billion by the end of 2023, up substantially from £741 million at the end of the prior period. This growth reflects both strong investment returns and substantial inflows of new client money, a testament to the confidence placed in the founding duo's vision and execution.
Remuneration and Partnership Structure
The £78.4 million payment to the top-earning partner highlights the lucrative potential at the highest levels of hedge fund management. The accounts detail that the profit share for the fund's members collectively stood at £166.7 million for the year.
While the identity of the top earner is not disclosed in the public filings, it is likely one of the firm's founding partners or a key senior portfolio manager. Such payouts are typically a combination of a share of the management fees charged to investors and a significant portion of the performance fees generated by successful trades.
A Bright Future in a Competitive Arena
The remarkable figures from Ilex Capital underscore London's enduring status as a global hub for hedge fund talent and innovation, even as the industry faces increased competition from other financial centres. The success story of de Saab and Rosen demonstrates how experienced traders can spin out from established giants to build formidable businesses of their own.
With its assets now well over a billion pounds and a proven, profitable strategy, Ilex Capital appears firmly established as a significant player in the competitive hedge fund landscape. The firm's continued ability to generate alpha for its clients will be crucial in determining whether it can sustain this impressive growth trajectory and attract further institutional capital in the years ahead.
