Saturday, March 10, 2012

Tracking Carlyle's Billionaire Co-founders

Forbes came out with its latest global billionaire list, which reached an all time high of 1,226 billionaires.  The Carlyle Group's three co-founders came in at 418. Each of the three had an estimated net worth of $2.8 billion.  Forbes estimated all three with the same net worth in every period except one, March 2011.
It estimated David Rubenstein at $2.6 billion, but suggested William Conway and Daniel D'Aniello had $400 million less, coming in at $2.2 billion.  Oddly, while the cofounders' net worth see-sawed, Carlyle's assets under management soared.

Each co-founders net worth fell by over $1 billion in the September 2008 financial implosion.  Carlyle's assets under management fell by $5.4 billion from $91.5 to $86.1 billion.  Carlyle scrambled for cash, receiving $681 million in capital calls from CalPERS.  Good times returned for Carlyle, in part due to Uncle Sam's TARP support for Boston Private Financial Holdings and the FDIC's $2.27 billion cash gift for BankUnited.  The Palm Beach Post finally took note.

Carlyle's co-founders are collectively known as the DBD's.  Several DBD funds are listed with the SEC and these could be seen as a proxy for the founders' wealth.

DBD Cayman Holdings Ltd - increased by $7 billion in one year

2011 - $0.5 billion
2012 - $7.5 billion

DBD Investors V Holdings, L.L.C. - increased by $1.7 billion this past year.

2011 - $0.45 billion
2012 - $2.2 billion

It looks like the DBD's are doing fine.  Carlyle distributed $6.4 billion to investors for the first three months of 2011.  That means Carlyle took $1.6 billion in carry.  Holdings are up, carry is up, one might expect Carlyle's co-founders' net worth to rise more than $100 million.  Their 2011 pay amounted to $138 million apiece.

Was it too late to include this data in Forbes Billionaire estimator methodology?  Maybe so.