Kenneth B. Mehlman has helped guide the investment giant into becoming more open as the firm transformed from a secretive partnership to a publicly traded company. Now he is assuming a top role at the private equity industry’s lobbying group.Mehlman's first task may involve settling a longstanding collusion case involving major private equity underwriters (PEU's).
Eight firms stand accused of agreeing from 2004 through 2008 not to “jump” deals signed by the others, Kosman writes, which collusion is claimed to have depressed buyout prices. The PE firms have repeatedly tried to get the 2007 suit thrown out.
The eight firms are a who's who of PEU's:
The PE firms in the suit making its way through federal court in Boston include KKR & Co. (KKR), Blackstone Group (BX), Bain Capital, Carlyle Group (CG), and Goldman Sachs Capital Partners (GS).
Mehlman has the skills and connections to deliver a settlement where over $1 billion changes hands and no PEU's go to jail. Ken served both sides of the Government-Corporate Monstrosity, Eisenhower's Military-Industrial Complex on trillions in federal steroids.