Bill Burnham’s entertainingly shit-disturbing analysis of how Mike Moritz and John Doerr have made out from their firm’s respective Google holdings made it into Barron’s this weekend. The bottom line, as Bill concedes, as that you can only put a floor on the two partners’ Google gains, not a ceiling, given that both are material investors in their firms’ own venture funds and so you can’t know how much of the carry either receives. That said, Moritz and Doerr made at least $306-million and $422-million, respectively, which isn’t exactly scratched parquet, as far as floors go.
The most entertaining part of the story, however, is this. Kleiner went to the trouble of setting up a conference call on the subject with Mark Veverka of Barron’s, one that KP’s John Doerr participated in — sort of:
It is not possible to calculate a general partner’s carried interest without knowing the exact investment made by a partner using his or her own funds. When given the opportunity to disclose actual figures, Denniston declined. He did not reveal Doerr’s carry or returns on the Google deal, saying the information was “confidential.” Doerr, who was on the conference call, declined comment except to wish us a good holiday.