Core investment group is one of the largest and most successful private equity firms in the world, managing over $150 billion in assets. As a highly secretive private company, its exact net worth is not disclosed publicly. However, we can gain insights into Core’s net worth and valuation through analyzing its assets under management, portfolio companies, fundraising ability, founders’ wealth, and more. Understanding Core’s net worth provides a glimpse into the vast wealth consolidated by elite private equity groups. This article will provide an estimate of Core’s net worth and discuss the sources of its valuation.
Core manages over $150 billion in assets, providing a baseline for its net worth
The most direct starting point for estimating Core’s net worth is its assets under management (AUM). As one of the largest private equity firms, Core manages over $150 billion in capital across its various funds. This AUM provides a baseline reference point for Core’s overall net worth and valuation. Of course, assets under management alone underestimate a private equity firm’s actual net worth, since the firm also owns lucrative management company equity and takes a cut of the substantial profits from its portfolio companies. Still, Core’s $150 billion+ in AUM indicates its net worth likely measures in the hundreds of billions.
Taking 20% carry on lucrative exits suggests tens of billions in net worth
As a private equity firm, Core generates the bulk of its net worth from the ‘carry’ – typically a 20% cut of the profits when a portfolio company is profitably exited via acquisition or IPO. With tens of billions in profitable exits over decades, simple math suggests Core has likely accrued tens of billions in carry as well. For example, if Core exited $100 billion in investments with a 2x return (not uncommon in private equity), its 20% carry would equal $20 billion. While Core reinvests much of this carry, it provides another clue that retained earnings likely place Core’s net worth in the tens of billions at minimum.
Owning valuable management company equity contributes to net worth
In addition to assets under management and carry, Core’s ownership of the lucrative management company itself contributes significantly to its net worth. As one of the largest private equity firms, Core’s management company equity is likely worth tens of billions alone. While this equity is shared among partners, it still accrues substantially to Core’s overall net worth. Management fees from assets under management and accelerated carry upon IPO also flow to management company equity holders, further increasing Core’s net worth from this source.
Core’s founders are billionaires, pointing to firm’s vast wealth
The vast wealth accumulated by Core’s founders also provides clues into the firm’s immense net worth. Core founders Henry Kravis and George Roberts are each estimated to be worth over $10 billion individually. As two of America’s wealthiest financiers, their billionaire status results directly from their Core equity and carry shares over decades. If two individuals accumulated over $20 billion combined, the firm as a whole is likely worth multiples more. Considering all these factors, a conservative estimate of Core’s net worth likely exceeds $100 billion.
In summary, an analysis of Core’s assets under management, carry economics, valuable management equity, and billionaire founders suggests the elite private equity giant likely holds a net worth comfortably in excess of $100 billion. However, as a notoriously secretive private firm, its exact net worth remains unknown outside a small inner circle.