The managers extracted their management fee, but that's basically only salaries.
Management fees in this case were $200 million. That's a pretty nice salary!
Management fees in this case were $200 million. That's a pretty nice salary!
"Toys 'R' Us does say in its SEC filings that $47 million in transaction fees that it owed KKR, Bain and Vornado, have been waived. The advisory fees were also voluntarily reduced by the investment firms in recent years" [1].
(Toys 'R' Us did pay the PE consortium "$470 million in fees and interest" [2], but the vast bulk of that goes to the fund, i.e. the people who just lost a billion dollars.)
[1] https://www.forbes.com/sites/nathanvardi/2017/09/19/the-big-...
[2] https://www.bloomberg.com/news/articles/2017-09-19/bain-kkr-...
>Bain, KKR, and Vornado will have to write off their investment, of course. But they did suck around $200 million in fees out of Toys 'R' Us over the course of their ownership.
TL; DR Nobody on the Toys 'R' Us deal teams at these firms is happy about this, and all will find their lives in the industry a little bit harder going forward.