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Rishi Sunak's former boss pays himself a huge £575m dividend

Payout: Former boss of hedge fund billionaire Sir Chris Hohn Rishi Sunak has paid himself a mammoth £575million dividend

Former Rishi Sunak boss pays himself huge £575m dividend as his hedge fund takes advantage of political and market turmoil

The former Rishi Sunak boss has paid himself a £575million dividend in one of the biggest payouts in British corporate history.

Hedge fund billionaire Sir Chris Hohn (pictured) received the sum, equivalent to £1.6m a day, after a surge in profits at his company TCI Fund Management

Based in Mayfair, London, TCI is one of the UK’s best performing funds, with profits reaching £732m in the financial year to February 2022, up from £286m in the last few months. Previous 12 months, according to accounts filed at Companies House show.

TCI took advantage of the political and commercial turbulence. The hedge fund is renowned for its activist investments and last month called on Alphabet, the owner of Google, for “aggressive” cost-cutting, warning that the US internet giant is overstaffed.

TCI, which stands for The Children’s Investment, is where Sunak spent his early years working, joining as a partner in 2006 before leaving in 2009.

The Prime Minister worked there in his twenties and this work made him a multi-millionaire despite the financial crisis. Hohn’s payout was significantly increased from the £115m dividend handed out a year earlier.

The previous year, he paid himself £343m.

That sum topped the £323million paid to Bet365 boss Denise Coates in 2018.

But the biggest check in UK history still belongs to Sir Philip Green. In 2005, Green and his wife Tina pocketed £1.2billion from his Arcadia fashion empire.

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No tax was paid on the dividend check payable to Tina Green as she is based in Monaco tax-free. Its dividend will cement Hohn’s status as one of Britain’s most successful investors.

The 56-year-old grew up in Surrey, the son of a Jamaican car mechanic. He graduated with first class honors in accounting and business economics from Southampton in 1988 before working for private equity firm Apax Partners.

Hohn founded TCI in 2003 and earned a reputation as a formidable activist fund manager, building stakes in companies and pushing them to change to improve their performance.

A well-known beneficiary of climate group Extinction Rebellion, he has pushed companies to improve climate policy, threatened to sue coal finance banks and said his fund will vote against directors whose companies fail to improve pollution disclosure. .

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He was 67th in this year’s Sunday Times rich list, with an estimated net worth of £2.6billion.

The parent company of his TCI empire is based in the Cayman Islands, a tax haven.

In 2014, while testifying in his divorce battle with ex-wife Jamie Cooper-Hohn, he described himself as “an incredible money maker”. A High Court judge then awarded Cooper-Hohn a £444million divorce payout.

TCI declined to comment yesterday.

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