Leonard Green Gives $2 Billion to Workers of Portfolio Firms

  • Mister Car Wash, SRS Distribution staff among beneficiaries
  • Private-equity firm says it embraces ‘conscious capitalism’

Jonathan Sokoloff, managing partner of Leonard Green & Partners.

Photographer: Patrick T. Fallon/Bloomberg
Lock
This article is for subscribers only.

Leonard Green & Partners has shared more than $2 billion of profits with employees of companies it backs, a move that won praise this week on the sidelines of the Milken Institute Global Conference.

“In 2021 alone, over 7,500 portfolio-company employees participated in profit-sharing or other distributions” in addition to their regular compensation, said John Danhakl, a managing partner at the Los Angeles-based private equity firm. “We believe in the stakeholder model where the employees who contribute to our companies’ performances share in the successes and the value they help create.”