The hedge fund that's paying employees $200k to find new staff
Eisler Capital Management, the "intellectually honest hedge fund" that's seen a few staff departures this year, has got a new method of adding to its ranks. It's paying existing employees a small fortune to find new ones.
Sources at Eisler say the multistrategy hedge fund recently increased the amount it pays employees who refer new portfolio managers from $50k to $200k. The sum is only thought to be payable if the referred individuals stick around for a year or more.
Eisler declined to comment on the payments. Headhunters say referral fees at hedge funds aren't unusual, but that they're usually a lot lower than $200k. "$10k to $20k is the norm," says one.
Eisler's generosity comes amidst a frenzied battle for hedge fund talent. Dmitry Balnasy, founder of hedge fund Balyasny Asset Management explained last week, multistrategy funds need to find talent. If they don't bring in experienced people, they can't expand into new areas, said Balyasny. And if they raise money before they have the people to manage it, they face a difficult period, sitting on capital that can't be deployed.
In the circumstances, a mere $200k payment to find a new portfolio manager may seem like good value. In 2022, Eisler Capital Management paid its average UK employee $1.2m (£1m), up from $227k the previous year; the highest paid director received $4m, more than double the amount allocated to the highest paid director for 2021.
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