Hedge Funds - Employment

Hedge funds operate in one of the most demanding corners of financial services, where employment relationships are shaped by complex compensation structures, acute regulatory scrutiny and, very often, the particular dynamics of small, high-performing teams. Our employment lawyers understand this environment from both sides of the table — we act for funds and for the individuals who work within them, including portfolio managers, senior executives, employees and LLP members. That breadth of experience means we bring a commercial, informed perspective to every matter, whether it is a day-to-day advisory question or high-stakes litigation.

Day-to-day employment support for hedge fund clients, including the drafting of offer letters, employment agreements and compensation frameworks. We have particular experience with the structures that are common to this sector, including awards linked to team PNL, carried interest arrangements, deferral programmes and co-investment provisions.

We represent both firms and individuals in Employment Tribunal and High Court proceedings, covering the full range of employment disputes that arise in financial services, including where parallel regulatory or reputational considerations are in play. We are adept at managing all aspects of litigation processes including sophisticated settlement strategies.

We advise firms and individuals through all types of investigations and hearings, including whistleblowing, grievances and disciplinaries. We have deep experience in identifying and advising on those investigations that carry potential regulatory consequences.

We advise on the application and enforceability of post-termination restrictions in a range of contexts, including team moves, pod spin-outs and the particular considerations that apply to LLP members. Given the competitive landscape for high value talent in the hedge fund sector, this is an area where early, specialist advice can be determinative.

We guide firms and individuals through their obligations under the regulator's frameworks (typically the FCA), including the introduction of the new non-financial misconduct rules that have come into sharper focus in recent years. We are adept at handling matters involving allegations of discrimination, bullying and sexual harassment, where regulatory, reputational and employment law angles intersect.

A significant proportion of our more contentious hedge fund employment work has a regulatory dimension. Whether a matter involves FCA oversight, or conduct questions that could affect an individual's authorised status, we are experienced in navigating the overlap between employment and financial services regulation — and in coordinating with our regulatory specialists where that is needed.

With many hedge fund set ups including LLP structures, our experience and expertise in this area is invaluable in understanding the overall picture in which hedge fund businesses and their members operate.

We understand how funds are structured, how decisions are made and what is at stake for the business. We equally understand the position of individuals — whether they are negotiating their entry into a fund, managing a dispute or facing a regulatory process that could affect their career. That combination of experience allows us to give advice that is informed by the realities of the sector, not just the legal framework around it.