Investors in Gradient Capital enjoyed big returns over the past three years, and the firm’s founders have profited handsomely from them.

Ivor Farman and Scott Pagel, who founded London-based Gradient in 2001, each took home £101.5 million (US$201.2 million) in the two years ending last July, according to the firm’s financial statements. In the year ending July 2006, the duo shared £94 million, and they split £109 million the following year. Their investors enjoyed a 56% return in 2005, and 47% in 2006.

Lately, however, Farman, Pagel and their investors have much less to smile about: The US$2.5 billion fund is down about 25% in its current fiscal year.