Thursday, April 14, 2016

Carlyle Technologies in Panama Papers

While searching for any Carlyle ties to Mossack Fonseca I found an odd piece in VanguardiaMX:  I used Google translate for the article which was published in Spanish:

In early versions of the information published in national media, Proceso magazine to head , described very generally the relationship of the company Altos Hornos de Mexico ( AHMSA ) with the signing Mossack Fonseca via the company Carlyle Technologies Corporation for " triangulation resources of the Mexican company since 2006, when the steel was bankrupt . "
I found the Proceso piece which translated to

The operation was made ​​through Carlyle Technologies Corp. , a company created in Panama through the office Mossack Fonseca , specializing in the operation in tax havens. AHMSA is so far one of the most important consortia of Mexico that appears in #PanamaPapers , global journalistic investigation that involved the magazine Proceso . 
Apparently Carlyle Technologies funded a $2.6 million luxury oceanfront condo for three executives with AHMSA.

There is no evidence that Carlyle Technologies is an affiliate of The Carlyle Group.  It's not on Carlyle's recent list of subsidiaries filed with the SEC.  However, there is an affiliate known as Carlyle Mexico Partners.

In 2007 Carlyle announced:

Global private equity firm The Carlyle Group today announced that it has raised $134 million for its first fund dedicated to investments in Mexico. Carlyle Mexico Partners (Carlyle Mexico), which is already 29 percent invested, makes control investments in companies primarily in Carlyle’s seven areas of sector expertise. CMP’s five dedicated investment professionals are based in Mexico City. Carlyle Mexico is headed by Managing Director Joaquin Avila. Mr. Avila established Carlyle Mexico Partners in January 2004 and has served as Co-head of the team since that time until becoming Head of the fund in December 2006. Mr. Miguel Valenzuela and Mr. Rodrigo Fonseca have also been part of the team of investment professionals since the group’s inception.
I found it interesting Carlyle had a Fonseca under their employ at Carlyle Mexico Partners.  The International Finance Corp invested $20 million in Carlyle Mexico in 2005  The Carlyle Group was founded on tax avoidance.  It would be interesting to know how Carlyle Mexico fulfilled that prime objective and any role Mossack Fonseca played in making the greed and leverage boys richer.

A 2015 story in Strictly Motor Yachts cited The Carlyle Group's purchase of Lauderdale Marine.  Further down it mentioned one player in Panama Papers story,

It was also recently reported that Dutch yacht builder Moonen Shipyards needed to put two builds on hold due to the financial troubles of one of its major shareholders. Altos Hornos de Mexico, one of that country’s largest steel plants was financing two yacht projects by Moonen, a 36 meter Martinique and 30 meter Matica, both in the builder’s Caribbean series. Altos attributed pulling its funding to the severe drop in steel prices in Mexico, which fell almost 40% in recent months.
AMSHA executives won't have new yachts to go with their oceanfront villa.

Update 5-23-16:  Fox News found a different Carlyle tie to the Panama Papers.