Lunchtime Links: Pay for Carlyle’s Limited Partners fell 68% in the first quarter; SocGen declined to grant voluntary redundancy to 70% of its applicants

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As we observed earlier this week, private equity pay isn’t what it used to be and Guy Hands has been obliged to put his hand into his own pocket to make amends. Nevertheless, you might have thought that Carlyle’s partners would be doing ok. And yet it appears they’re not.

Carlyle released its first ever set of quarterly results as a public company yesterday. They weren’t particularly healthy: revenues were down by a fifth.

Most notable, however, was what happened to the ‘distributions’ of carried interest and equity that Carlyle sets aside for its limited partners. These fell 68% year on year in the first quarter, to $2.5bn from $7.7bn. It seems that even private equity’s most masterful masters of the universe are being squeezed. Nevertheless, banks report junior corporate finance staff are still as keen as ever to leave for private equity funds.

Separately, Les Echos reiterated today just how hard it is to get accepted for voluntary redundancy at SocGen. 2,200 people have reportedly requested voluntary redundancy at SocGen’s corporate and investment bank, only 638 have been accepted. There are therefore 1,562 very frustrated people at SocGen’s CIB.


Credit Suisse planning to make 125 redundancies in Manhattan by August. (Bloomberg)

Alison Carnwath, head of remuneration committee at Barclays, argued Diamond didn't deserve his bonus. (Wall Street Journal) 

Who is Alison Carnwath? (Forbes) 

95% of Morgan Stanley investors liked James Gorman’s 25% pay cut and zero cash bonus. (Bloomberg) 

92% of JPMorgan shareholders still want to pay Jamie Dimon $23m. (Bloomberg) 

Maybe you don’t want to work at BCG Partners now. (IanFraser)

Redundancies probably coming to ICAP. (Bloomberg) 

The CIO unit also had a lower cost of capital than other parts of the bank, an artificial advantage that gave it an incentive to take more risk and behave in a less disciplined way, people familiar with the unit said. (IFRE) 

92% of JPMorgan shareholders still want to pay Jamie Dimon $23m. (Bloomberg) 

Boaz Weinstein was on the other side of Bruno Iksil’s trade. (New York Post) 

Bruno Iksil was selling Grade Series 9 10-Year Index CDS, and JPMorgan Asset Management was buying them (for clients). (DealBook) 

RBS investors say Stephen Hester isn’t being paid enough for the work he’s doing. They did not mention the rest of the staff at RBS Markets and International Banking. (Telegraph)

Michel Barnier wants bank investors to have a binding say on pay AND to be able to set a bonus cap. (Financial Times) 

Hollande and Merkel agree on one thing – a financial transaction tax. (Guardian)  

Natixis has hired someone fromUnicredit for hedge fund sales. (FinAlternatives) 

David Long, JPMorgan’s head of cash equities, is off on sabbatical and will come back in a different context. (Financial News)

How I totally underestimated the MBA admissions process. (Poets and quants)

Bank of America Merrill Lynch  is looking for returning mothers on Mumsnet. Coaching is on offer. (Mumsnet)