- Capula’s FY to 31 March 2025 results weakened, with revenue down 19% to £479m and pre-tax profit down 23% to £233m.
- Performance fees fell 48% year-on-year to £125m, driving most of the decline.
- Investor-reimbursed pass-through fees rose about 20% to £72m, partly offsetting pressure from lower performance income.
- Despite fee volatility, Capula is continuing to hire, including a macro PM from Point72 and new quant and credit research roles.
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Capula’s financial results for the year ended 31 March 2025 show a material weakening across core metrics. Revenue fell ~19% to £479 million, while pre-tax profit dropped roughly 23% to £233 million. The main cause was a halving of performance fee income, which plunged from £244 million in 2024 to £125 million in 2025—a 48% decline.
On the cost recovery front, the firm increased pass-through fees (i.e. reimbursed expenses) to £72 million, up about 20% over the prior year. These pass-through fees cover operational expense lines such as salaries, rent, and travel, and are growing in importance for Capula and potentially other hedge funds under pressure from declining performance revenues and rising costs.
Strategically, despite these headwinds, Capula continues to recruit aggressively. In November 2025, it hired a macro portfolio manager from Point72, Vinay Dhanuka; and it is recruiting quantitative and credit research roles in London and New York. This suggests management believes growth or recovery is possible, perhaps via differentiated strategy execution or investment capability enhancements.
There are significant implications and risks. Performance fee volatility remains a major risk factor for earnings stability. Over-reliance on pass-through fees could face investor scrutiny over whether they represent inflated cost bases. Talent costs and technology investment are increasing, and if performance doesn’t rebound, the margin pressure will intensify. On the opportunity side, recruiting from top peers could yield new alpha; and growing pass-through structure might allow more fee predictability if managed transparently and controlled tightly.
Open questions for further analysis include: Are Capula’s performance issues idiosyncratic to its investment styles or reflective of macro hedge fund industry underperformance? How tenant is investor appetite for increased pass-through costs versus baseline expense coverage? Can Capula and similar managers adapt fee models to balance alignment with investors and cost recovery?
Supporting Notes
- Capula’s profit fell to £233 million for year ending 31 March 2025, down 23% from £305 million the previous year.
- Total revenue dropped 19% to £479 million, from £591 million in the prior period.
- Performance fees dropped 48% to £125 million, from £244 million in 2024.
- Pass-through fees reimbursed by investors (for expense items) were £72 million, up ~20% from the previous year.
- Capula was co-founded in 2005 by Yan Huo and Masao Asai, ex-investment bankers at JPMorgan and UFJ International respectively.
- Vinay Dhanuka, formerly a portfolio manager at Point72, joined Capula in November 2025 as macro portfolio manager in London; roles open include a quantitative strategist in London and a credit quantitative researcher in New York.