Brevan Howard Asset Management is preparing to launch a new share class for some clients of its main hedge fund strategy which will allow it to introduce so-called “pass through” fees, according to a report by Bloomberg.
The report cites unnamed sources and regulatory filings as confirming that the fund intends to use the new share class to raise additional money for its main $10 billion strategy which has till now been closed to new investment.
Many large hedge fund companies that employ multiple, traders to run a range of divers strategies are starting to replace or supplement their standard 2% of assets management fee structures with pass through fees, which can climb to 10% or more, plus the usual 20% or more performance fees.
Brevan Howard is no stranger to pass through does, having first intrude led the structure on its Brevan Howard Alpha Strategies Master Fund back in 2018.
