Monday, May 27, 2013

WaPo Pushes Carlyle's ValueCast

WaPo published an excerpt from The Carlyle Group's recent ValueCast by co-founder David Rubenstein (Carter White House) and Chris Ullman (Clinton White House),   Rubenstein is a PEU Oracle (PEU is my acronym for private equity underwriter).

The ValueCast included a confession on how PEU's make money:

...very little equity was put in, and complicated financial structures were used to enhance the returns.
Leverage and easy credit have returned to levels prior to the financial crisis.   Liquidity recapitalizations, affiliate debt-for-dividend financial restructuring, exploded after the financial crisis.  China Daily had this to say on PEU's love Chinese companies 

Taking a company private, he added, is normally a complex business, but the "distance, differences in accounting rules, and unusual corporate structures" involved in privatizing a Chinese company are "likely to lead to bigger disputes over what a company is actually worth".

In the Washington, D.C. world of power and influence, how might WaPo help Carlyle fund raise, given their spreading Rubenstein's "Top Ten" list of PEU changes?