Key Takeaways
- • Blackstone's pay tied to realised carried interest fell 39% year on year in Q3, while KKR's fell 35% (partly due to KKR booking some performance fees as fee income instead).
- • Apollo's realised carried interest rose 156% year on year in Q3, helped by exits including from Fund X, and it paid a larger share of that to staff.
- • Salaries, bonuses and share awards rose 7% at Blackstone, 23% at KKR and 22% at Apollo in Q3, despite the carried interest declines at Blackstone and KKR.
- • None of the three firms disclosed headcount in Q3 figures, so a per-head pay comparison is not possible.
Summary
Carried interest, the profit share earned on successful exits above a hurdle rate, is a central attraction of private equity careers and can reach eight figures for senior deal teams. Because it depends on realised exits rather than paper gains, it can swing sharply from quarter to quarter. Third-quarter results from Blackstone, Apollo and KKR show that these payouts did not move uniformly across the sector.
At Blackstone, pay tied to realised carried interest fell 39% year on year across the whole business in Q3, and its realised carried interest from private equity specifically roughly halved. At KKR, the figure fell 35%, though this was partly because KKR now records some performance fees as fee income. Apollo was the outlier, with realised carried interest rising 156% year on year; its overall realised carried interest increased 80%, helped by exits from funds including Fund X, and it passed a bigger share of that to staff.
Compensation costs did not follow the carried interest trend. Salaries, bonuses and share awards rose 7% at Blackstone, 23% at KKR and 22% at Apollo in Q3. Salaries and bonuses are mostly paid from management fees, which rose at all three firms. Apollo attributed its higher salary bill mainly to a larger staff base.
The comparison has limits. None of the firms disclosed headcount in their Q3 figures, so per-head compensation cannot be assessed. The firms also run different mixes of private equity, private credit, insurance and other businesses, which complicates direct comparison.
At Blackstone, pay tied to realised carried interest fell 39% year on year across the whole business in Q3, and its realised carried interest from private equity specifically roughly halved. At KKR, the figure fell 35%, though this was partly because KKR now records some performance fees as fee income. Apollo was the outlier, with realised carried interest rising 156% year on year; its overall realised carried interest increased 80%, helped by exits from funds including Fund X, and it passed a bigger share of that to staff.
Compensation costs did not follow the carried interest trend. Salaries, bonuses and share awards rose 7% at Blackstone, 23% at KKR and 22% at Apollo in Q3. Salaries and bonuses are mostly paid from management fees, which rose at all three firms. Apollo attributed its higher salary bill mainly to a larger staff base.
The comparison has limits. None of the firms disclosed headcount in their Q3 figures, so per-head compensation cannot be assessed. The firms also run different mixes of private equity, private credit, insurance and other businesses, which complicates direct comparison.
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