Monday, December 11, 2017

Carlyle Hopes to Profit from PEU Bankruptcies

The Carlyle Group invested in Prime Clerk, a four year old company that helps bankrupt corporations with needed legal services.  PE Hub reported:

The company’s services include: pre-bankruptcy filing preparation, noticing solutions, claims administration, balloting and tabulation, secure disbursements, strategic communications and call center support, case specific websites and virtual data rooms.

"By leveraging Carlyle’s global network and providing the Company with growth capital, we will help take Prime Clerk to the next level of success. We are proud to partner with this management team."
Over one third of Prime Clerk's customers went bankrupt under private equity ownership.  

What does Carlyle see that leads them to believe their will be growth in the bankruptcy services sector?  How much of that might come from Carlyle's global network?

Sunday, December 10, 2017

PEUs Accelerate Future Scrooge Recruitment

Bloomberg reported:

The private equity recruitment cycle is starting earlier than ever, forcing firms and candidates into the frenzied process before Christmas.

While extending formal offers in recent years has started earlier and earlier in January, never has it come before Christmas.

Access to the best talent can go quickly, so the process works like a levy breach: Once one firm starts, the others flood in to follow suit.  

As the timeline moves earlier, the decisions get quicker. So-called exploding offers, which give candidates a day or even just hours to decide, have in some cases been replaced by a nuclear option: accept on the spot or pass it up.
 It's race to the top for future greed and leverage boys, also known as private equity underwriters (PEU).  The rise of PEUs corresponds to the death of America's middle class.  It's causation, not coincidence. 

Friday, December 8, 2017

Carlyle's Rubenstein Now Divorced

Carlyle Group co-founder David Rubenstein and his wife Alice Rogoff are officially divorced, according to today's WaPo

The couple, who married in 1983, was granted a divorce in Montgomery County on Friday morning. All financial and other terms were settled privately and will remain confidential, according to Rubenstein’s lawyer, Sandy Ain, and Rogoff’s lawyer, Linda Ravdin.
The divorce occurred nearly four months after Mrs. Rubenstein put Alaska Dispatch News into bankruptcy.  The article did not address how any divorce proceeds might go to make Alaska Dispatch News creditors whole.

Carlyle recently celebrated its 30 year anniversary as a private equity underwriter (PEU).  Mr. and Mrs. Rubenstein separated in 2005, when Carlyle was 18, a mere teen. 

The couple has three grown children and reports have David Rubenstein opening a family office with a daughter. 

Sunday, December 3, 2017

Billionaire Saudi Prince Detained 28 Days, Abandoned by Western "Friends"

Saudi Prince Alwaleed bin Talal hit four weeks in detention without word of his situation.  The billionaire prince, a frequent CNBC contributor, had few friends speak on his behalf since he was taken on November 4, 2017.  Prince Alwaleed bin Talal is being held at the Riyadh Ritz Carlton.

Fellow billionaires should know it could happen to them.   Like many of them Alwaleed bin Talal signed the giving pledge.  His Giving Pledge page states:

“It is our duty as philanthropists to harness the very best of human nature — generosity, innovation, creativity — to make the biggest possible difference in people's lives.” 
The prince's detention occurred right after Carlyle Group co-founder David Rubenstein suggested Saudi Arabia was safe for billionaire investment.

What value is there in being friends with the West?  We can ask Prince bin Talal if  he ever resurfaces.  Saif Gadhafi recently went public in Libya.  He may have advice for the world about his and his father's experience with the Western billionaire class.

Is it safe?  FT offered:

The Gulf state’s regulator has asked local and foreign banks to disclose if they have credit facilities and safety deposit boxes in the names of those arrested, including billionaire Prince Alwaleed bin Talal.

Update 12-5-17:  Forbes shared the most substantive information to date on the plight of the billionaire prince. " the settlement offered to Alwaleed bin Talal requested that he hand over a large portion of his assets and agree to lifetime house arrest with no phone and no media interviews. Alwaleed has refused the offer, according to the source, and wants to go to court. The specific allegations against Prince Alwaleed have not been made public."  The story said some of quiet Western friends are worried about him.

Update 12-9-17:  NPR ran a piece on the missing prince and how it is making investors nervous.  It stated "detaining a key international financial player of Alwaleed's stature could harm potential investment in Saudi Arabia, some analysts say."  No word from Carlyle co-founder David Rubenstein if Saudi remains an attractive place to invest, a comment he made one week before bin Talal got taken.  Rubenstein has been busy ending a different relationship.  He divorced wife Alice Rogoff.

Update 12-10-17:  Saudi princes are moving money to Europe in the aftermath of the purge.

American Soul by PEU Bono

Blessed are the arrogant for theirs is the kingdom of their own company
Blessed are the superstars for the magnificence in their light we understand better our own insignificance
Blessed are the filthy rich for you can only truly own what you give away,  like your pain (pain)
Blessed are the bullies for one day they will have to stand up to themselves  Standup
Blessed are the liars for the truth can be awkward
Under Bono's superstar light can we understand our insignificance?  Paul Hewson is a private equity underwriter (PEU) for Elevation Partners and a special partner with TPG Growth'a RISE Fund.

Paul/Bono sits on the RISE board with TPG founders David Bonderman and James Coulter. 

David Bonderman:  "Europeans don’t care about growth, no matter what they say… Europeans only care about social stability. They care about the social compact."
Private equity is all about growth.  As for any implied social compact billionaire founders grew wealthier while worker pay stagnated the last two decades.

TPG's James Coulter spoke at a Delivering Alpha conference in September.

The meeting delivered over $2.2 trillion of investable assets represented by over 100 influential institutional investors.
A CNBC article on Coulter's talk mentioned the following:

Law firm Covington-Burling delivered a report to Uber with 47 recommendations to improve its culture, which has been plagued by criticisms of widespread sexism

TPG partner David Bonderman quit Uber's board in July after taking heat for a sexist remark. The ride-hailing company has been under investigation for its workplace culture. 
Bono's PEU peers are the self-serving, politically connected greed and leverage boys.  Their world is private and they run the board.  Any of their bad behavior will need a snitch, who can be bought off.

Bono intends to do good and make big money off the RISE fund, just as he did with a $43 million profit from Facebook.  Facebook has come under fire from insiders over its addictive design:

“It literally changes your relationship with society, with each other … It probably interferes with productivity in weird ways. God only knows what it’s doing to our children’s brains.”
Four years ago David Bonderman said:

The real problem with Africa is that the markets are small… The only two countries that really have markets of any size are Nigeria which has a whole set of problems and South Africa which has a whole set of problems. What is attractive with Africa is that it’s starting from a very low base.

A lot of these countries are moving the most and improving the most because they are the worst.
So TPG wants to help the worst rise while making bank

The Rise Fund is committed to achieving social and environmental impact alongside competitive financial returns.  
Competitive PEU returns is a definable metric.  The transparent RISE team refused to share their target figure.  Is that arrogant for filthy rich PEU superstars to not share their desired multiple of money?  Or does it make them liars and/or bullies?

Bono shows us those with the gold, platinum and double platinum can rule.  

Thursday, November 30, 2017

Carlyle's Newest NYC Retailer

Business of Fashion reported:

Carlyle-Backed Twinset Plots Expansion
The Italian fashion brand will open its first US store in New York, with plans to take on London in 2018.

Other Carlyle retailers in the Big Apple include Supreme:

Golden Goose Deluxe Brand:

And former holding Moncler:

Most are European imports.  American based Supreme went the other way to London, Paris and Japan.  Carlyle's dream is to expand affiliates, mine them for cash and flip them for a multiple of their original equity investment.  It's the PEU way. 

Wednesday, November 29, 2017

Double Digit PEU Raises

Bloomberg reported:

The most junior PE professionals saw base salaries increase by 14 percent to $125,000.
Private equity is now an employer of choice for former politicians, however they don't enter at the junior level.

As for the PEU pay survey, Bloomberg included a caveat:

And that doesn’t include bonuses and carried interest, or their cut of deal profits.
Private equity underwriters (PEU) fare well in tax reform, keeping their preferred carried interest taxation under both the House and Senate bills.   Are they looking after their supporters, their future income or both?

Politicians Red and Blue love PEU.

Update 12-9-17:  Jacobin reported:  "The Obama presidency was a disaster for middle-class wealth in the United States. Between 2007 and 2016, the average wealth of the bottom 99 percent dropped by $4,500. Over the same period, the average wealth of the top 1 percent rose by $4.9 million."