Saturday, December 3, 2016

Dugout Ventures Joins Inkwell as New PEU

Private equity underwriters (PEU) have become ubiquitous.  Proof aqrises from several new boutique private equity firms.  The latest arrival was announced at PEHub:

A group of retired baseball legends, which include Nolan Ryan, David Ortiz and Barry Larkin, have formed Dugout Ventures, a new private equity firm focused on backing baseball-specific companies.

Dugout Ventures is the first of its kind. Where players not only endorse, but also invest and build the brands and products they use. And do so in a business environment being led by some of the most influential players not only on the field, but also in their post-playing business careers.

In addition to the primary group made up of players, Dugout Ventures is also announcing its first $50MM LP fund, where accredited investors can invest alongside the players. The fund is taking advantage of the new 506(c) regulations to announce this investment opportunity publicly through their website and social media.
Dugout joins Inkwell Group, a brand new PEU focused on the proven power of racial and gender diversity.  Who knew greed valued diversity and baseball?

What's next as private equity expands ad infinitum? 

Missing Initials in Stories on Trump & PEU Petraeus

Stories on President elect Donald Trump's consideration of General David Petraeus for Secretary of State have abbreviations like DOD, CIA, ISIS, and FBI.  They don't have the initials KKR, a New York based private equity underwriter (PEU) with $131.1 billion in assets under management. Here's what he does for KKR:

Gen. Petraeus is involved in the KKR investment process and oversees the Institute's thought leadership platform focused on geopolitical and macro-economic trends, as well as environmental, social, and governance issues.
Bloomberg had this to say about KKR in an interview with billionaire founder Henry Kravis:

Private equity holds trillions of dollars in assets, controls brand-name companies, and invests on behalf of pensions, endowments, and government funds around the world. Back in 1976, it barely existed. That’s when Henry Kravis, his cousin George Roberts, and their boss Jerome Kohlberg Jr. quit Bear Stearns and started their eponymous investment company, KKR, which is celebrating its 40th anniversary.

Kravis and Roberts, co-chief executive officers, have transformed not only how companies are bought and sold, but also how they’re run. They’ve also expanded the firm far beyond leveraged buyouts, diversifying into real estate and hedge funds as well as a few businesses once dominated by big banks. Today, through ownership stakes in more than 100 companies with a combined annual revenue of $200 billion, KKR indirectly employs almost a million people.
Politico, Counterpunch, and ABC News are three news organizations who failed to report General Petraeus' current job, Chairman of the KKR Global Institute.  In April 2015 Petraeus wrote in support of the Trans-Pacific Parternship

The consequences for Washington’s getting the TPP right are huge: opening some of the world’s fastest-growing markets to more U.S. exports; improving U.S. competitiveness; growing the global middle class; creating jobs; and fostering the prosperous, open and rules-based Asia that is in everyone’s interest.
I don't believe Trump voters support would be excited about growing the global middle class as U.S. wages have been stagnant for twenty years.  However, billionaires like yes men and Trump knows Henry Kravis well.   Will General Petraeus change from a billionaire PEU boss to a billionaire President?  It's up to Donald Trump, currently changing out the blue PEU team in favor or the Reds.

Friday, December 2, 2016

Trump Appoints PEU Foreclosure King

While WaPo has the nation scurrying around in search of Russian propogandizers President elect Donald Trump appointed yet another PEU for Treasury Chief.  Dune Capital's Donald Mnuchin rode a substantial FDIC subsidy to hundreds of millions in profits on IndyMac Bank, which Dune renamed OneWest Bank.

OneWest foreclosed on more than 36,000 homeowners under Mnuchin. During that time, the FDIC made payments to OneWest totaling more $1 billion.

Dealbook reported

The sale of IndyMac was unusual because it was one of the first transactions involving lightly regulated private equity firms acquiring a bank holding company.

IndyMac collapsed after defaults mounted on mortgages and panicked customers withdrew more than $1.3 billion of deposits over 11 business days.
They later sold OneWest to CIT.  Mnuchin currently holds nearly 2 million shares of CIT and just resigned from the board.  His CIT stock is currently worth over $80 million.

Some Trump voters were foreclosed upon by OneWest Chairman Mnuchin, who got his hand slapped in 2011 for shoddy foreclosure practices.  Trump "change" voters got PEUd.

Targeting Russians: Central Theme Post Election

One week ago I wrote:

The Washington Post - Propornot linkup points to group think that emanates from a central source, be it the winning political team, the losing team's techies wanting to massage the ego of their vanquished champion and/or a whittled down corporate media intent on disparaging those doing what they won't, look behind the political public curtain.
What's happened since?  ZeroHedge reported:

On November 30, one week after the Washington Post launched its witch hunt against "Russian propaganda fake news", with 390 votes for, the House quietly passed "H.R. 6393, Intelligence Authorization Act for Fiscal Year 2017", sponsored by California Republican Devin Nunes (whose third largest donor in 2016 is Google parent Alphabet, Inc), a bill which deals with a number of intelligence-related issues, including Russian propaganda, or what the government calls propaganda, and hints at a potential crackdown on "offenders."
Washington's Blog wrote:

US intelligence officials believe Russia helped disseminate fake and propagandized news as part of a broader effort to influence and undermine the presidential election, two US intelligence sources told BuzzFeed News.
Buzzfeed's piece stated:

The congressional Intelligence Authorization Act for this year, which could be passed through Congress as early as next week, mandates the revival of a Cold War-era panel known as the Active Measures Working Group, which would be a White House-appointed panel specifically tasked with unmasking and handling Russian influence efforts. That provision of the bill, initially proposed by Sen. Tom Cotton, has wide support from Democratic and Republican lawmakers on the Hill.
More data points that indicate group think from a central source?  That's my take. Here's what they don't want voters to focus upon:

Especially as the Trump team appoints private equity underwriters (PEU) to key Cabinet posts.

Wednesday, November 30, 2016

Carlyle's Final Screwing of Brintons' Family & Employees

The Carlyle Group is exploring a sale of Brintons', the storied British carpet maker.  Carlyle hired William Blair to auction Brintons' five years after acquiring it for £38 million out of liquidation.  The story did not say how Carlyle put Brintons' in liquidation by buying company debt on the cheap.  The Brintons' family leveled about their unfair treatment by Carlyle. 

Rather than buying the family's equity stake, Carlyle bought the company's debt (at a discount to its face value, no doubt). Once they had acquired the debt Carlyle then used a controversial pre-pack administration to seize control – placing the carpet-maker into administration, then buying it straight back.

By using a pre-pack to acquire the business, Carlyle was able to jettison Brintons' pension fund – complete with its £10.5m deficit. 

I expect the family to be knotted and tufted about Carlyle's plans to get over £200 million from the sale.  The sixty five Brintons' employees laid off in February 2016 might be frosted about Carlyle's huge payday after theirs was eliminated. 

Carlyle dumped Brintons' pension responsibility on the public Pension Protection Fund.  How much will they get from Carlyle's monstrous profits on Brintons' sale?  Nothing, nada, zippo.  Auctioneer William Blair will get more than the Pension Protection Fund.

Carlyle promotes how they are the solution for underfunded pensions.  Just not Brintons', a five year PEU bled affiliate. 

Is Private Equity the New Religion?

Goldman Sachs CEO Lloyd Blankfein's does God's work.  Thus, private equity underwriters (PEU) must have a similar striving.  Seraphim Capital is a UK based private equity firm that recently launched a Space Fund to profit from the heavens.  Seraphim are six winged creatures that praise God on his throne. 

One Seraphim Managing Director also is cofounder and CEO of Angel Capital.  That's a second bit of name data supporting a holy alignment. 

It's hard to be heavenly with agnostic capital.  Dang!  This PEU almost passed the third test and joined the Lloyd Blankfein "I can take it with me" Club.   

Tuesday, November 29, 2016

Tax Cuts Coming: How Big?

WSJ reported:

“Right now in Washington nobody cares about the debt,” Carlyle Group co-founder David Rubenstein said at the SuperInvestor private equity conference in Amsterdam. “We have $20 trillion of debt and people say, ‘OK, $20 trillion, $22 trillion, $23 trillion—what difference does a couple of trillion make?’”
Mr. Rubenstein said he didn’t share concerns voiced by many since the election that Mr. Trump’s economic policies could fuel inflation. He pointed out that the inflation rate has remained near historic lows for years.

“I don’t expect there will be a lot of constraints on private equity going forward,” Mr. Rubenstein said. “I don’t think it’s going to be adversely affected by President Trump or his administration.”
As I've said before "Politicians Red and Blue love PEU."   The billionaire class loves its representative elect. The tax cuts are coming, the tax cuts are coming.