Did you know there was a magazine called Private Equity International? Of course
there is, and of course it’s making headlines with that favorite trope of all
magazines: a list. Of the world 50 largest private-equity companies. And the
winner is… Carlyle
Group! Applause, please for David Rubenstein and his co-founders:
finally they’ve managed to overtake Kohlberg Kravis Roberts, at least by one
metric.
I like the metric, actually: total funds raised over the past five years. Keeps
people on their toes, doesn’t let them coast along on money raised back in the
1980s. But really its’s a four-way tie for first place, with Goldman Sachs and
Blackstone Group joining the list of shops who’ve raised $30 billion, give or
take, since 2002.
Just remember, on a 2-and-20 basis, $30 billion of assets under management
gives you $600 million a year before you make a single penny in profit. If you
return 40% a year, as some of these shops do, then your income rises to $3 billion.
Per year. Mostly taxed at the 15% capital gains rate. Nice work if you can get
it.