(Bloomberg) -- Leonard Green & Partners has shared more than $2 billion of profits with employees of companies it backs, a move that won praise this week on the sidelines of the Milken Institute Global Conference.<\/p>\n
Most Read from Bloomberg<\/p>\n
In 2021 alone, over 7,500 portfolio-company employees participated in profit-sharing or other distributions in addition to their regular compensation, said John Danhakl, a managing partner at the Los Angeles-based private equity firm. We believe in the stakeholder model where the employees who contribute to our companies performances share in the successes and the value they help create.<\/p>\n
Employees of companies including Mister Car Wash Inc., SRS Distribution and Charter Next Generation are among those that received a piece of the profits, and more than $1 billion was shared with workers outside of the executive suite. Leonard Green took Mister Car Wash public in June and remains its biggest shareholder.<\/p>\n
The firm, with more than $50 billion of assets under management, said it has been a early participant in the conscious capitalism movement and seeks to partner with companies and management teams that believe in shared success, which can include providing equity stakes and sale bonuses.<\/p>\n
Some industry executives who attended the Milken conference in Beverly Hills congratulated Jonathan Sokoloff, also a Leonard Green managing partner, as word of its largesse spread.<\/p>\n
It is the most gratifying thing weve ever done at Leonard Green over our 30-plus year history, Sokoloff said. We have a multitude of stories of employees at our companies who have achieved life-changing financial independence that many thought would never be possible, and our goal is to increase the impact we can have.<\/p>\n
Story continues<\/p>\n
Other alternative asset managers also share profits with employees of portfolio companies. Earlier this year, New York-based KKR & Co. disbursed $500 million of profits from the sale of manufacturer Ingersoll Rand Inc. to 16,000 workers at the Davidson, North Carolina-based industrial-equipment manufacturer.<\/p>\n
Read more: KKR Hands $500 Million to Ingersoll Rand Workers After 162% Gain<\/p>\n
Beginning in 2011, KKR implemented an employee ownership model within its industrials portfolio. This enables profit-sharing with staff, including hourly workers, in at least 11 portfolio companies including Charter Next Generation, which it co-owns with Leonard Green, a KKR spokeswoman said.<\/p>\n
(Updates with KKR profit-sharing in last paragraph.)<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
2021 Bloomberg L.P.<\/p>\n
<\/p>\n
View post:<\/p>\n
Leonard Green Gives $2 Billion to Workers of Portfolio Firms - Yahoo Finance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" (Bloomberg) -- Leonard Green & Partners has shared more than $2 billion of profits with employees of companies it backs, a move that won praise this week on the sidelines of the Milken Institute Global Conference. Continue reading