Billionaire Michael Platt has sweetened the deal for traders at his private investment firm.
BlueCrest Capital Management is offering some money managers as much as 30% of the profits they generate, according to people with knowledge of the matter. Other payout bands include 23% and 25%, said the people, asking not to be identified because the details are private.
The rates signal soaring competition among investment firms to lure and retain the talent they need to run their rapidly growing assets. Multi-strategy hedge fund managers such as BlueCrest, Millennium Management and Citadel are hiring from each other and the wider industry in order to expand.
BlueCrest’s offer is one of the most lucrative in the investment management industry, where payouts to hedge fund traders tend to range from 8% to 20% on average, although some star managers get paid much more. The payout also depends on the profitability of the firm as a whole, one of the people said.
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