Capital is a commodity, human talent is not. We invest heavily in our people and ensure they participate in the financial profits of our collective success.
Through our Share the Gains program, for example, we as the General Partners dedicate 10% of our total carried interest pool in every investment to the non-management team employees, each of whom is critically important to our continued success. Carried interest is our primary means of compensation as investment managers. This commitment ensures that all employees of a company—not just senior management teams and the private equity owners—share in the benefits of our collaborative efforts.
As we are allocating a portion of our compensation as investment managers, Share the Gains does not detract from the returns of our investors or executive management team members. In fact, it enhances the collective BVG team and has been recognized by a number of our limited partners (i.e., our own investors) and senior management team members who have chosen to also dedicate a portion of their profits to Share the Gains.
Simply put, we believe this is the right thing to do and hope our lead will inspire other business owners to make commonplace what is currently a unique model to BVG.