Wednesday, January 7, 2009

PEU's Have $200 Billion to Invest

The Wall Street Journal reported the top ten private equity underwriters (PEU's) have a combined $200 billion to put to work. Some of that is targeted for infrastructure, distressed debt and our flagging financial sector. The article stated:

The private-equity firms -- led by Goldman Sachs Group Inc. with $31.15 billion, TPG with $24.7 billion and Carlyle Group with $23.4 billion -- have $197.1 billion of undrawn capital, according to data provider Preqin.
How much did the taxpayer pump into Goldman recently? $10 billion. Why should the taxpayer invest in Goldman when their private equity division has over $31 billion in cash? As an aside, TARP investments did nothing to increase bank lending.

The Carlyle Group total should increase by $13.7 billion, as they closed their fifth U.S. buyout fund.

Recall as President elect Obama talks about $1 trillion deficits as far as the eye can see. It's time for those with more to pay more. We did it during WWII, during a time of crisis.