Carried interest: who earned what in 2017

CEOs at KKR and Blackstone received more carried interest or incentive fee distributions in 2017 than the previous year.

Blackstone chief executive Stephen Schwarzman saw his carried interest and incentive fee distributions almost triple last year, according to the firm’s latest filing with the Securities and Exchange Commission.

Schwarzman received $123.8 million in respect of carried interest or incentive fee allocations in 2017, the 10-K filing noted. This compares with $45.6 million in 2016 and $88.3 million in 2015.

The firm’s distributions depend on the realised proceeds and timing of the cash realisations of the investments owned by the carry funds in which its executives participate, according to the filing. Its carry fund agreements typically require a positive return on the relevant investment and for the fund to be above its hurdle rate.

KKR co-chiefs George Roberts and Henry Kravis each received $67.8 million last year, reflecting a modest improvement from their $63 million of respective carried interest distributions in 2016. As co-founders the pair determine their own allocation from the carry pool, the firm’s 10-K noted.

Not all listed private equity chiefs receive carried interest or incentive fee distributions. Apollo Global Management’s Leon Black is understood to have exchanged his carried interest allocation for equity in the firm at the time of its listing in 2007 to guarantee better alignment of interest with its public shareholders.