Tuesday, June 7, 2011

Carlyle to Monetize the Rest of ManorCare

The Carlyle Group, a private equity underwriter (PEU), will take HCR ManorCare public, according to Reuters.  Carlyle montetized ManorCare's physical assets for $6.1 billion to HCP,  a health care REIT.  The IPO could value the remainder of the firm at $2 billion. Carlyle paid $4.9 billion for the company in 2007.  That equates to a $3.2 billion or 65% profit over four years.

The IPO should happen in September after Labor Day.  That's before Carlyle's expected PEU IPO filing in the third quarter.  Carlyle's founders, the DBD's, continue their "Great Cash In."  Their billions in profits will be taxed at a preferred "carried interest" rate.  Carlyle chief David Rubenstein spent many hours on Capital Hill saving private equity's discount tax schedule.

Carlyle leaders will take their profits and run, likely offshore.  Pay no attention to the Chairman and Co-CEO roles for the DBD's.  These boys aren't hanging around long in a public company.  For twenty four years their plan has been to take the money and run, while subsidized and protected by political leaders, some of them purchased.

Carlyle continues to unwrap their gifts from the Bush White House. The first came after Hurricane Katrina.  Frances Townsend omitted any mention of Carlyle's failure to  25 sick and elderly LifeCare patients who died in Katrina's aftermath.  The second came when the White House and Congress approved the ManorCare deal without raising one concern over Carlyle's past failure.

Carlyle put a number of their horrific stories to bed.  LifeCare remains an open sore.  I imagine a buyer will wait until LifeCare's Katrina lawsuits run their course.

Once upon a time PEU's didn't exist.  Now they run the world, even controlling which stories are told..

Update:  Carlyle sold 45% of Italian clothing maker Moncler SpA instead of a planned IPO.  It will take Qualicorp public on the Brazilian exchange