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Schwarzman tops 2014 private equity earnings

Saturday, February 28, 2015 - 12:44
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[NEW YORK] Blackstone Group LP Chief Executive Stephen Schwarzman took home US$690 million in 2014, more than any other private equity executive, as his firm and the wider industry benefited from the favorable conditions for cashing out on investments.

Mr Schwarzman's personal earnings were up 52 per cent year-on-year, reflecting the bumper year his firm had by selling assets at high valuations. Blackstone's distributable earnings were US$3.1 billion in 2014, up from US$1.9 billion in 2013.

Mr Schwarzman, 68, received US$85.9 million in compensation, US$570 million in dividends from his Blackstone shares, and US$33.5 million from his investments in Blackstone funds in 2014, a regulatory filing showed on Friday. His net worth is currently pegged by Forbes at US$12 billion.

Trailing Schwarzman was Leon Black, the CEO of Apollo Global Management LLC. In 2014, Mr Black, 63, received almost US$331 million, made up of US$273,980 in compensation, US$267.9 million in dividends from shares and US$62.4 million from his investments in Apollo funds, another filing showed on Friday. Black's net worth is US$5.2 billion, according to Forbes.

Carlyle Group LP's founders each received at least US$95.4 million from pay and dividends and at least another US$132 million from their personal investments in the firm's funds, a filing showed on Thursday.

David Rubenstein, William Conway and Daniel D'Aniello, who founded Washington, D.C.-based Carlyle in 1987, received US$98.2 million, US$95.1 million and US$95.1 million in dividends respectively in 2014 from their Carlyle shares.

Rubenstein also received US$132.3 million, Conway US$247.7 million and D'Aniello US$133.8 million from Carlyle's funds in 2014 as a result of investing alongside the firm's clients. Each of the three of them has a net worth of $2.8 billion, according to Forbes.

KKR & Co LP co-founders Henry Kravis and George Roberts took home US$219.7 million and US$229.1 million, respectively, a filing showed on Friday.

Kravis, 71, received US$64.5 million in compensation plus US$155.3 million in dividends from KKR shares, while Roberts, also 71, took home US$64.4 million in compensation plus US$164.8 million in dividends from KKR shares. Their net worth is pegged by Forbes at US$5 billion each.

The four private equity firms do not break down how much of the capital returned to their founders as a result of their personal investments in their funds is profit and how much is capital invested.

REUTERS

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