Monday, February 11, 2013

World Gone Flippy Flopy

In today's nonsensical world private equity underwriters (PEU's) go public, doing so after decades of touting their model of levered, nonpublic capital.  The Carlyle Group did just that last year, going public on NASDAQ.  Fox Business News reported NASDAQ recently held talks with Carlyle about going private.

Think of the benefits for Carlyle, with thousands of affiliates.  It could have its own IPO shop.  What fee generating potential!  Pair a Duff & Phelps consultation with a new NASDAQ listing and Carlyle makes much more than annual affiliate management fees.  Sandler O'Neill could also generate fees for parent Carlyle in an IPO.

Public, private, it matters not amongst the billionaire crowd.  "Sales lines" differ from greed strategy.

Update  2-12-13:  NYPo suggests negotiations are ongoing between Carlyle and NASDAQ.  Gotta love this inspiring quote from a Carlyle insider.

Carlyle adviser and former Securities and Exchange Commission Chairman Arthur Levitt, who said he isn’t privy to any talks, said he looks back fondly on the days when the exchanges weren’t run for profit. “It is an open question as to whether changing self-regulatory bodies to profit-making ones necessarily offers investors the same protection,” he said.
Yes, it's an open question.