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Carlyle Group Founders Received $413 Million Last Year Before Planned IPO

Carlyle Group, the Washington-based private-equity firm seeking to go public, said its three founders received a combined $413 million last year as profits rose.

William Conway, Daniel D’Aniello and David Rubenstein each earned a $275,000 salary, a $3.55 million bonus and $134 million in distributions, the firm said yesterday in a filing with the U.S. Securities and Exchange Commission. Carlyle said it doesn’t plan to create a compensation committee as it prepares to go public, leaving decisions regarding the founders’ pay in their own hands.

Carlyle’s founders “have historically made all final determinations regarding executive officer compensation,” the firm said in its filing. “The board of directors of our general partner has determined that maintaining our current compensation practices following this offering is desirable and intends that these practices will continue.”

Compensation of private-equity managers and their taxation has come under scrutiny by U.S. lawmakers, who have been considering proposals to tax some distributions at the higher rate for personal income. Mitt Romney, the former Bain Capital LLC chief executive officer who is seeking the Republican presidential nomination, was attacked this week for his role in the buyout industry by rivals who said he enriched himself at the cost of corporations and their employees.

Nasdaq Listing

Carlyle said net income for the nine months through Sept. 30 rose to $918.1 million from $571.1 million a year earlier and revenue rose 60 percent to $2.01 billion. The firm returned $15 billion to its limited partners during the same period, the most it has ever distributed over a nine-month period, according to an investor.

Carlyle plans to list shares on the Nasdaq under the symbol CG. It hasn’t set a price range or the number of shares it aims to sell. In seeking to offer shares to the public, the buyout firm follows New York-based rivals Blackstone Group LP and KKR & Co.

Stephen Schwarzman, chief executive officer of Blackstone, earned $398.3 million in 2006, the year before his firm went public. Blackstone raised $4.75 billion in its 2007 IPO.

Carlyle, which oversaw $148 billion in assets as of Sept. 30, said it expects to hire more employees after the offering.

To contact the reporters on this story: Devin Banerjee in New York at dbanerjee2@bloomberg.net; Cristina Alesci in New York at calesci2@bloomberg.net

To contact the editors responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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