Saturday, February 14, 2015

Another Cheating Carlyle Affiliate

Undercurrent News reported::

Pacific Andes' flagship factory trawler Damanzaihao, formerly known as Lafayette, is on the final list of vessels marked as engaged in illegal, unreported and unregulated (IUU) fishing drafted by the South Pacific Regional Fisheries Management Organization's technical and compliance committee.
FinanceAsia reported in July 2010:

Dennis Chan looked excited. The financial controller of Pacific Andes International Holdings, a Hong Kong-listed global seafood conglomerate, had just closed a $190 million private placement with The Carlyle Group to fund expansion – the latest in the company’s plans to grow.

“The investment will allow the entire group to expand,” he said. “We are targeting expanding our fishing rights in Peru and in Africa – all over really.”

Another Carlyle affiliate caught cheating again?   Pac Andes/China Fisheries joins Semgroup, Synagro Oriental Trading, China Forestry and Carlyle itself in ethically dubious behavior.   So why might Pac Andes cheat?

The Carlyle Group brags of 30% annual returns on equity.  The ever shrinking blue line must be putting pressure on Pac Andes/China Fisheries management, which gets passed down to subordinates.  Obsession with outcomes produces a wide range of responses, roughly 30% involve lying, cheating or stealing. 

Carlyle funneled the investment through China Fisheries, a subsidiary of Pac Andes.  That's why there's no mention of a Pac Andes investment on Carlyle's website.

A Carlyle Group affiliate was charged with illegal, unreported and unregulated fishing.  I'd venture there's much more to find in Carlyle's global net of PEU holdings, many of them well offshore.  Somehow PEU and fishy go together.

Update 5-12-15:  Pac Andes and China Fishery Group saw revenues and net income plummet due to reduced fishing access off Peru.