Blackstone's Schwarzman's earnings flat in 2012; Apollo's Black gains

Fri Mar 1, 2013 9:26pm EST
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By Greg Roumeliotis

(Reuters) - The earnings of Blackstone Group LP (BX.N: Quote) head Stephen Schwarzman were flat in 2012 at more than $200 million, while Leon Black, the CEO at private equity rival Apollo Global Management LLC (APO.N: Quote), closed in on him with a 73 percent rise in his earnings.

Black's 2012 earnings rose to $180.2 million, while Schwarzman's earnings were $213.3 million, according to separate regulatory filings by the two firms on Friday.

The two buyout kings saw a big rise in dividends from their stakes in the firms they founded. Schwarzman, however, received just $800,000 in 2012 from funds predating Blackstone's initial public offering in 2007, compared with the $74 million he received from these funds in 2011.

Private equity firms took advantage of buoyant equity and debt markets in 2012 to sell many of their investments, leading to bumper profits for their fund managers who receive performance fees in the form of so-called carried interest.

Schwarzman and Black, who are both billionaires, receive other income through their own investments in their funds, which is not disclosed. Schwarzman had a net worth of $5.2 billion as of September 2012, while Black had a net worth of $3.5 billion, according to Forbes.

KKR & Co LP's (KKR.N: Quote) co-founders and chief executives, Henry Kravis and George Roberts, received about $137 million and $141 million, respectively, in executive compensation and cash dividends in 2012, up by more than 45 percent over what they received in 2011.

Most of Schwarzman's and Black's profits came from their ownership stakes in their firms. Schwarzman, who has a 21 percent stake in Blackstone, received $204.1 million, up from $134.5 million in 2011. Black, who holds a 24 percent in Apollo, received $179.9 million, up from $103.9 million.

Schwarzman, 66, received $8.4 million in compensation, which includes a $350,000 salary. Black, 61, received just $287,368, of which just $100,000 is salary. The rest includes carried interest the two men are entitled to as chief fund managers.   Continued...

Stephen Schwarzman, chairman and CEO of the Blackstone Group, attends the annual meeting of the World Economic Forum in Davos January 24, 2013. REUTERS/Denis Balibouse