Carlyle founders share $400m in 2011 earnings
The Carlyle Group’s three founders together earned more than $400 million in 2011 after the private equity firm returned a record $15 billion to LPs in the first nine months of the year.
David Rubenstein, William Conway and Daniel D'Aniello each earned a $134 million share of Carlyle's investment profits - a reflection of their large ownership stakes in the firm - in addition to salary of $275,000 and a bonus of $3.5 million, according to a document filed with the Securities and Exchange Commission.
The filing was made ahead of Carlyle's expected IPO, which is tipped to take place in the second quarter.
Glenn Youngkin, the firm's COO, received salary of $275,000, a bonus of $3 million and a $9.8 million share of the investment profits. CFO Adena Friedman's salary was $200,961 in addition to which she was awarded a bonus of $1.9 million and an $81,930 profit share.
Carlyle professionals often invest significant amounts of their own capital alongside the firm's funds. In addition, they may receive a portion of the carried interest and incentive fees accrued by the funds. Between the firm's inception and September 2011, more than $4 billion has been invested by employees in or alongside funds.
In 2011 alone, the founders invested around $357 million - $163.8 million by Conway, $98.3 million by D'Aniello and $96.9 million by Rubenstein. They also received distributions from past investments of $77.6 million, $70.9 million and $56.8 million, respectively.
Separately, professionals and other employees who work directly for certain funds qualify for 45% of any carried interest - payable in cash once an underlying investment is realized - with the exception of energy and renewable resources vehicles.
Bonuses awarded to the three founders are capped at $3.5 million in accordance with a 2001 agreement with the California Public Employees Retirement System (CalPERS) intended to ensure an alignment of interests. Under the same agreement, the three founders do not own carried interest at fund level but take their share from the income that flows from these funds to Carlyle's parent entity.
Ahead of its listing in 2007, The Blackstone Group disclosed that its top five executives shared in $771.5 million in cash distributions in 2006.
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