Saturday, April 24, 2021

Youngkin Worth Over $300 Million


Carlyle Group Co-CEO Glenn Youngkin officially resigned on September 30, 2020 to follow the call of public service.  Youngkin hopes to land the Republican nomination for Virginia Governor.  

Youngkin left Carlyle's platinum handcuffs, surrendering unvested shares of company stock from various pay programs.  

We have historically relied in part on the interests of these professionals in the investment funds’ carried interest and incentive fees to discourage them from leaving the firm

After 25 years public service called.  SEC filings showed Youngkin had as many as 8.9 million shares of Carlyle stock, vested and unvested.  After his retirement Carlyle records show him with 6.7 million shares.  It's not clear if Youngkin sold any stock between his retirement and Carlyle producing the 2021 SEC filing. 

Youngkin's 6.7 million shares were worth over $275 million yesterday. Private equity professionals are known for investing alongside limited partners, for having a "stake in the game."

In addition to his over $275 million in Carlyle stock Youngkin has personal funds invested alongside Carlyle Group investors.

The amount invested in and alongside our investment funds during 2018 stood at $14,272,206 for Mr. Youngkin.   

Certain of our directors and our executive officers (and their family members and investment vehicles) also made additional commitments to our investment funds during 2018.  Total unfunded commitments as of December 31, 2018 were $73,754,891 for Mr. Youngkin.

The amount invested in and alongside our investment funds during 2019 rose to $16,667,781 for Mr. Youngkin.  

Total unfunded commitments of our directors and executive officers (and theirfamily members and investment vehicles) to our investment funds as of December 31, 2019 was $78,307,824 for Mr. Youngkin.

The amount invested in and alongside our investment funds during 2020 rose to $18,582,584 for Mr. Youngkin.

Total unfunded commitments of our directors and executive officers (and theirfamily members and investment vehicles) to our investment funds was $65,724,694 for Mr. Youngkin.

Candidate Youngkin has a personal reason to protect private equity's preferred taxation of carried interest.  Carlyle filings state:

If the U.S. Congress or state, local or certain foreign governments enacted legislation to treat carried interest as ordinary income rather than as capital gain for tax purposes or impose a surcharge on carried interest, this could result in a material increase in the amount of taxes that our carry recipients would be required to pay.

As of 2020 Carlyle reported Youngkin had $16.7 million in carried interest .  Youngkin also received $8.5 million for his partnership units.

That adds up to $305 million from his Carlyle holdings.  Youngkin earned a combined $12 million in compensation outside stock awards from Carlyle for 2018 and 2019.  He had twenty five years to use his wealth to acquire/grow other assets, homes, cars, retirement accounts and other financial investments.  

Virginians will find out Youngkin's worth when he files financial disclosure forms, should he win the nomination and general election.  He could release his tax forms, which would provide insight as to Youungkin's finances.  

Update 4-30-21:  Youngkin is clearly part of the top 0.1% which has outsized influence on government from the outside.  Youngkin wants to serve the PEU class from the inside as Virginia governor.