Key facts
- KKR sold Integrated Specialty Coverages (ISC) to Onex Partners, delivering a 2.5x return.
- Nearly 400 ISC employees received cash payouts based on their tenure and salary.
- Payouts ranged from $10,000 to over $413,000, with some receiving up to 30 months of salary.
- The initiative is part of KKR's broader program to share private equity profits with employees of its portfolio companies.
- KKR has distributed $2 billion to over 40,000 employees across 15 exited companies through this program.
KKR has distributed significant cash bonuses to employees of Integrated Specialty Coverages (ISC) following the company's sale to Onex Partners. The payouts, part of KKR's initiative to share private equity profits, were based on employee tenure and salary, with some long-term employees receiving up to 30 months of their pay.
ISC employees, including product manager Justin Berk and director of operations Bonnie Stewart, received windfalls ranging from $10,000 to over $413,000. Berk, who had previously received only a "pat on the back" from former employers, was awarded 30 months of his salary. Stewart, who has been with the company for 19 years, also received a substantial payout, expressing that the feeling of winning was comparable to a Super Bowl victory.
In total, nearly 400 ISC employees benefited from the program, which renames "employees" as "owners" to foster a sense of shared success. KKR's initiative has been implemented across 91 companies, with 15 exits resulting in over $2 billion distributed to more than 40,000 employees. These employees do not receive actual shares but rather a portion of equity earmarked for them, with payouts tied to the return KKR achieves on its investment.
For many ISC employees, the money is life-changing. Berk plans to use his bonus for family vacations and to ease the financial burden of his daughters' activities. Trevor Sybert, an underwriter who joined in 2020, intends to use his 15 months' pay as a down payment on a condo. KKR also provided free financial advisors to the employee owners, helping them manage their windfalls and plan for the future.