London-based Generation recorded a profit of £101.3 million during 2015, according to its latest accounts filed at Companies House in September. The profit – which can be shared among members – was markedly up on the £57.5 million posted the previous year.
The $ 14 billion firm was set up in 2004 by seven partners, including David Blood, the former head of Goldman Sachs Asset Management, and Mark Ferguson, son of ex-Manchester United FC manager Sir Alex Ferguson, alongside Gore.
Profits available for the member with the largest entitlement in 2015 were £13.1 million, compared with £5.3 million in 2014. Blood is Generation’s largest shareholder, according to a person familiar with the firm.
The results come at a time when institutional investor demand for strategies that take into account environmental, social and governance factors is regarded by some experts to have reached an inflection point. According to Financial News’s 2016 Asset Management CEO Survey, 50% of firms now incorporate ESG as a default across all funds and products.
Generation’s revenue was also up 53% during the year to £126.1 million. The firm’s top-line growth was predominantly driven by performance fees doubling from £30.1 million to £60.9 million, while management fees also rose to £65.1 million from £52.8 million. Just over half the firm’s revenue (£69 million) came from the UK with the remainder coming from the US.
The fund manager runs four investment strategies. Its flagship global equity strategy has about $ 11 billion in assets under management, having been closed to new investors for the past two years. Generation has run an Asia equity strategy since 2011.
The firm also has a climate solutions strategy, which mainly makes minority equity investments in growth-stage companies and a global credit strategy.
Total number of employees rose to 46 in 2015 from 43, with the firm employing 15 investment professionals.