Brevan Howard Triples Workspace With New London Headquarters
(Bloomberg) -- Brevan Howard Asset Management is moving to a new London headquarters that’s almost three times larger than the hedge-fund firm’s existing office, signaling an expansion plan after a record year of gains.
The company has taken over a lease from French advertising giant Publicis Groupe SA in the city’s West End, according to people familiar with the matter. The building at 82 Baker Street, which is near the firm’s current headquarters, has more than 70,000 square feet (6,500 square meters) of office space, the people said, asking not to be identified because the deal is private.
It’s not clear if Brevan Howard will occupy the entire space itself or sublease parts of the office. A spokesman for the firm declined to comment and a spokeswoman for Publicis didn’t respond to emails seeking comment.
Brevan Howard, which managed $14.6 billion at the end of March, and other hedge funds have been on a hiring spree as market volatility creates more trading opportunities. The company co-founded by billionaire Alan Howard last year posted the best returns in its near two-decade history, with its main fund up more than 27% and its U.S. Rates Opportunities Fund soaring nearly 99%.
The firm, which is now led by Chief Executive Officer Aron Landy, has also diversified. Its Coremont unit is offering other money managers access to its high-tech infrastructure while doubling headcount to more than 200 people since 2018. Brevan has also begun investing in crypto-currencies.
Financial services companies have been among the biggest source of demand for West End offices so far this year, according to broker Savills Plc. Still, that’s failed to offset a spike in vacancies as more firms dump surplus space in the wake of the pandemic. Some 6.9% of offices in the West End are now vacant, about double the average rate over the past five years.
Brevan Howard’s move to a larger office is in stark contrast to a string of announcements from companies looking to cut real estate costs after the pandemic. HSBC Holdings Plc is aiming to reduce its footprint by as much as 40% while Lloyds Banking Group Plc is targeting cuts of 20% by 2023.
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