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Sir Keir Starmer’s chief enterprise aide will proceed to obtain dividend funds from his multimillion-pound stake in company advisory agency Hakluyt whereas in authorities, elevating contemporary considerations about potential conflicts of curiosity.
Varun Chandra, former managing associate on the group, remains to be entitled to “lowered dividends”, Hakluyt stated, and has divested to date solely 1 / 4 of his earlier stake regardless of having joined Starmer’s workforce in July.
Within the 12 months to June 2023 Chandra acquired over £300,000 in dividends from the corporate, on prime of a wage of £2.1mn, in keeping with Monetary Instances calculations based mostly on its final set of accounts.
Hakluyt — based by former MI6 officers — boasts a “blue-chip shopper base world wide”, together with 40 per cent of the world’s most useful corporations and greater than 15 of the highest 20 personal fairness corporations.
Chandra, a former funding banker, was employed in July as Starmer’s particular adviser on enterprise, performing as a key interlocutor between the prime minister and the company world.
He owned 454,000 unusual shares in Hakluyt on the time of his appointment, or simply underneath 5 per cent of the enterprise.
Chandra bought 4,617 shares in August and an additional 108,968 shares in October, leaving him with 340,753 shares or about three-quarters of his authentic stake, in keeping with a beforehand unreported submitting at Firms Home.
Hakluyt stated that when Chandra left the corporate in July it had agreed a “customary” sale and buy settlement to purchase again his shares over time “mounted on the then-current share worth”.
It added: “He is entitled to obtain lowered dividends till the buyback of his shares is full — however he not has any voting rights or decision-making position within the agency.” It declined to element what the discount in dividend funds meant.
Downing Avenue declined to say whether or not Chandra had acquired dividends from Hakluyt whereas he has been in authorities. Chandra didn’t instantly reply to a request for remark. Hakluyt declined to touch upon whether or not a dividend had been paid up to now six months.
Particular advisers are allowed to have monetary pursuits however they should be declared, in keeping with the federal government’s code of conduct.
Earlier this week, one other Hakluyt associate, Sir Olly Robbins, was appointed the brand new everlasting secretary for the Overseas, Commonwealth and Growth Workplace (FCDO).
Robbins, who was additionally the UK’s chief Brexit negotiator, held a smaller stake than Chandra’s of 5,814 unusual shares, and is within the strategy of promoting all his shares again to Hakluyt, the corporate stated.
“This can be accomplished imminently,” Hakluyt stated. “He’ll obtain no dividends — and he additionally not has any voting rights or decision-making position within the agency.” Robbins declined to remark.
One ally of Chandra stated the choice to section the sell-back of his shares was meant to keep away from liquidity points for the corporate. The particular person stated Chandra signed a share buy settlement and argued that this amounted to disposing of the shares.
Hakluyt made £18.2mn in internet revenue within the 12 months to June 2023, on turnover of £113mn, in keeping with its final set of printed accounts. It paid a £6mn dividend within the 12 months.
Chandra additionally continues to carry an curiosity within the agency’s funding arm, Hakluyt Capital, in keeping with folks conversant in the matter.
Richard Holden, Conservative shadow paymaster-general, stated there have been “critical points” about Chandra’s pursuits.
“The full lack of transparency on Mr Chandra’s enterprise pursuits, and whether or not these affect his position at Downing Avenue, are deeply troubling and want pressing and full readability,” he stated.
“Sir Keir Starmer should compel Mr Chandra to totally declare his pursuits and supply the readability and transparency he promised however has been missing in his authorities so far.”
Authorities officers stated Chandra had gone by an intensive course of on declarations of curiosity to ensure any conflicts of curiosity have been “correctly managed and mitigated”, together with recusals the place acceptable.
Chandra initially began his profession as a junior funding banker at Lehman Brothers previous to its collapse in 2008.
He went on to assist former prime minister Sir Tony Blair launch his personal advisory enterprise earlier than becoming a member of Hakluyt in 2014, the place he loved a dizzying rise, turning into managing associate and de facto head of the corporate in 2019, aged simply 34.
Throughout his time main the advisory agency, he spearheaded the creation of Hakluyt Capital, which raised round $50mn final June for investments in start-up tech corporations and which has an workplace in San Francisco.
