BH Digital didn't just get Dragonfly's head of liquid strategies, it got the whole team

Quick Take

Dragonfly’s liquid team was acquired by investment firm Brevan Howard, according to two sources.
Brevan Howard said on Thursday that Dragonfly’s Kevin Hu, who led the Dragonfly team, had joined the firm.

Brevan Howard Digital didn't just hire Dragonfly's head of liquid strategies — it scooped up the whole team.

The firm said on Thursday that Dragonfly’s Kevin Hu, a former general partner and head of the liquid strategies, had joined Brevan Howard's crypto arm and would focus on listed digital assets. But BH Digital also acquired Hu's former liquid group at Dragonfly, according to two sources familiar.

BH Digital and Dragonfly both declined to comment.

BH Digital is expanding amid a difficult market for the industry. While cryptocurrencies have seen prices rally in recent weeks, they are still far from their 2021 peak. The collapses of 3AC and FTX triggered ripple effects, sending companies scrambling to survive.

Dragonfly launched its inaugural liquid crypto fund in 2021, which was managed by Hu, Ashwin Ramachandran and Lawrence Diao. As of April, the liquid investment platform had raised more than $450 million. It announced the launch of a new "liquid platform" in July, without explaining what exactly it was.

Brevan Howard manages over $30 billion in assets for institutional investors, such as sovereign wealth funds and corporate and public pension plans.