Sunday, August 29, 2010
Carlyle's DBD Investors Could Refund Texas
The Carlyle Group's Vought Aircraft Industries promised 3,000 new jobs in return for $35 million in state assistance. They cut 35. Governor Rick Perry collected $900,000 before revising the Texas Enterprise Fund contract. While the new agreement remains a secret, Carlyle's founders have the ability to make Texans whole.
Daniel D'Aniello, William (Bill) Conway and David Rubenstein's initials form DBD. DBD Investors V owns 5 million shares of Vought's new owner, Triumph Group. DBD's shares are worth $353 million, roughly ten times what is owed to Texans (without interest).
Will DBD investors make good on their prior agreement? Given DBD's Cayman Islands tax dodging, it's doubtful. I hope David Rubenstein's commitment to give away half is fortune is better than Vought's commitment to Texas taxpayers.
Update 9-16-10 Citybiz List revealed another Carlyle investment vehicle based in the Cayman Islands.
Update 6-1-11: The Texas legislature supposedly fixed the holes in the Texas Enterprise Fund, ones that allowed Carlyle to skate on their Vought employment promises. The problem in the narrative: the 2004 agreement had all the required parameters. Gov. Perry refused to enforce them.
Update 8-14-11: Presidential candidate Perry's absurd claim that Vought provided Texans over 29,000 jobs per the TEF agreement remains unchallenged in the media.
Posted by PEU Report/State of the Division at 10:01 PM