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Carlyle Founders Get $279 Million in 2013 on Assets Sales

Carlyle Group LP (CG)’s founders received $92.9 million each last year in pay and cash dividends, an increase of 61 percent from 2012, as the firm took advantage of rising equity markets to sell shares in companies.

William Conway, Daniel D’Aniello and David Rubenstein were each paid a $275,000 salary, Washington-based Carlyle said today in a filing with the U.S. Securities and Exchange Commission. Each founder also received $92.6 million in cash distributions during the year from their ownership of partnership units in the company they started in 1987 as a leveraged-buyout group.

Carlyle profit rose 79 percent last year as its portfolios gained in value and it seized on rising stock markets to sell holdings. The firm sold shares of railway operator Genesee & Wyoming Inc., French cable operator Numericable Group SA and ratings company Nielsen Holdings NV (NLSN), in addition to completing sales of aviation-information company Arinc Inc. and German software maker P&I Personal & Informatik AG, both of which returned more than 4.5 times the investment by Carlyle and its limited partners.

“Our 2013 performance was better than we had anticipated earlier in the year because of the growing strength during the year of our portfolio,” Rubenstein said on a Feb. 19 conference call. “Our performance also exceeded our prior outlook because some of the exit activities that we earlier expected would occur in future periods in fact occurred in 2013.”

Boosted Dividend

The exits resulted in a full-year shareholder dividend of $1.88 a share, compared with $1.12 in 2012. Holders of Carlyle partnership units, such as the three founders and other senior executives, received $1.97 a share, the firm said in the filing. Carlyle employees during the year committed $1.1 billion of their money to funds managed by the firm.

KKR & Co. (KKR), the private-equity firm founded and run by billionaire cousins Henry Kravis and George Roberts, said Feb. 24 its two leaders received more than $161 million each last year, almost all of it from dividends on their stock ownership and carried interest, or their slice of investment profits. Their payouts increased more than 17 percent from 2012 as the firm’s after-tax profit rose 5.2 percent and it boosted its dividend by 15 percent.

The American Enterprise Institute, a Washington-based research group, said Feb. 25 it received a $20 million pledge from D’Aniello for a new building in the Carlyle chairman’s name. Rubenstein, Carlyle’s co-chief executive officer, was ranked the 21st most charitable American last year by the Chronicle of Philanthropy, giving $121.7 million to institutions.

To contact the reporter on this story: Devin Banerjee in New York at dbanerjee2@bloomberg.net

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

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