Ringing the Alarm on PEUnnuities

Bloomberg wrote about Leon Black before he stepped down as head of Apollo due to his long term relationship with Jeffrey Epstein.  Their story included:

Apollo was busy building Athene, the insurer that would become its main source of cash. Apollo helped fuel its own growth by funneling Athene’s money into Apollo funds and collecting management fees on the investments. The arrangement drew the two companies even closer together. As Athene assets swelled at the end of 2013, it became clear to Apollo executives they were sitting on a gold mine. Rowan pushed a measure through the insurer’s board to double the fees it paid Apollo, raising them to more than triple what a typical manager would get, according to people familiar with the matter. (Apollo says it has delivered significant value to Athene and that the insurer benefits from its support, including tax, legal, and financial services.) The insurer has made Apollo the envy of Wall Street. Athene now generates a quarter of Apollo’s fee-related income, but it’s also drawn scrutiny from officials. The relationship between the companies is so intricate, says one former employee, that it would take regulators a year to understand it.

Private equity underwriters (PEU) cut their teeth packaging funds for endowments, pension funds, sovereign wealth funds and family offices.  It's much easier when the PEU owns the capital pool, as is the case with insurance companies.  

Many corporate pension funds have outsourced their pension liabilities to PEU owned life insurance companies via the purchase of annuities.  This shifts the liability for guaranteeing that pension from the employer to the state regulated life insurance company (PEU owned).  

Government regulators at the state and federal level are OK with the switch and apparently have no concerns about the quality of investments backstopping those contracts.  

Many financial experts have become concerned about PEU firms loading up their insurance affiliates with their own offerings.  Owner sells to owned insurance company its packaged investment offerings.  There is only one very strong arm in this deal.  Nothing is arm's length.  

Bond guru Bill Fleckenstein of Fleckenstein Capital noted the size of these conflicting relationships: 

Apollo has placed $227 billion of its deals into Athene US Life, its captive life insurance company; KKR has placed $163 billion of its deals into its Global Atlantic; Blackstone has put $209 billion into its Fidelity & Guaranty, Everlake, and Resolution Life; Brookfield has placed $90 billion into its American National, and so on."--Dan Oliver of Myrmikan Capital

Carlyle has Fortitude: Re "to sell" into.  

Their most recent 10-K states:

Carlyle FRL owns a controlling interest in Fortitude and has the right to appoint a majority of its board of directors. As a result, there may be real or apparent conflicts of interest with respect to matters affecting the Company, Carlyle-managed funds, and their portfolio companies and Fortitude, including with respect to the fiduciary duties that our employees that are board members owe to Fortitude in addition to the duties that they have to the Company. In addition, conflicts of interest could arise with respect to transactions involving business dealings between the Company, Fortitude, and each of their respective affiliates. The foregoing conflicts of interest may also arise with respect to subsidiaries of Fortitude.

Recall that this is what got former Lakers owner Mark Walters in trouble.  Walters loaded up his captive insurers with his affiliates' debt, while misrepresenting the size and scope of those holdings.  

Walters is connected so it will be interesting to see how his situation plays out given that politicians Red & Blue love PEU and their new TechGod brethren.  Increasingly, more are one. 

Coming Soon: Trump II's World Liberty Trust Bank

 CBS News reported:

The Treasury Department's Office of the Comptroller of the Currency (OCC) on Friday granted preliminary approval to World Liberty Trust Company to establish a bank charter, a move that would allow it to issue and manage its own stablecoins without relying on a middleman.

Trump II co-founded World Liberty Financial in fall 2024 as he ran for a second Presidential term.  

"This creates the awkward situation of the OCC needing to police World Liberty, which has an affiliation with the president's family," said Austin Campbell, a professor at New York University's Stern School of Business. "It is pretty unprecedented."

The Guardian noted: 

World Liberty's bank will not be allowed to pay its depositors, the companies and individuals who buy its stablecoins, any interest. 

The bank, however, can earn interest for itself by putting the cash it collects from those depositors into high-quality liquid investments – US government-backed treasury bonds.

So the Treasury is incentivized to approve a future buyer of its bonds.  Right now Treasury Chief Scott Bessent needs help pressing down interest rates.  Eric and Zach to the rescue.

Trump II's family holds 38% of World Liberty.  A UAE sovereign wealth fund owns 49%.

Banking Dive reported:

The bank will be governed by a five-member board which will include CEO and Chairman Zach Witkoff; Scott Alper, president and chief investment officer at Witkoff Group; Robert Witkoff, former co-chief investment officer of insurance firm Chubb Co.; Jeffrey Weiner, former CEO of accounting firm Marcum LLP; and Erin Baskett, a member of the Financial Industry Regulatory Authority’s board of governors. 

World Liberty Trust will issue and redeem USD1, manage the reserve backing USD1, and conduct digital asset custody services for institutional customers.

The major users of USD1 are also Middle East sovereign wealth funds.   Reuters reported in May 2025:

A stablecoin launched by Donald Trump's World Liberty Financial crypto venture is being used by an Abu Dhabi investment firm for its $2 billion investment in crypto exchange Binance, one of World Liberty's co-founders said on Thursday.

Fortune added: 

When first launched, the company had no products—except for a cryptocurrency that it sold to investors for $550 million. In March, the company launched its own stablecoin, or cryptocurrency pegged to underlying assets like the U.S. dollar. 

The coin got an immediate bump in market capitalization after MGX, another venture firm tied to the Abu Dhabi royal family, invested $2 billion into the crypto exchange Binance with USD1, the stablecoin.

Maybe they can name it Phoenix Bank as it is rising fast towards the sun.  When that Co-founder Emeritus hairpiece catches fire things may get very ugly.  Until then party like its the late 1920's under the Great Trumpsby.

Update:  Reuters found a concerning use of USD1 as payment currency for Chinese AI models identified by the Trump administration as a threat to national security.  

Their review:

... found that 43 of the 90 models available through WorldClaw’s website, or nearly half, were developed by Alibaba, Baidu, Z.ai and other Chinese technology companies the Trump administration says pose risks to national security and intellectual property.

One could go insane looking for consistency under Trump II.  World Liberty's Head of Growth Ryan Fang is an advisor to WorldClaw.  The insider money funnel is spinning cash to connected individuals.

Trump II's Regulatory Pot Boils for Some, Cool Drink for Others

It's getting harder to know a number of things as the globe fractures into continental alliances.  The U.S. is backtracking on corporate ownership disclosures as it facilitates corporate hacking of global entities.  Trump II refers to such hackers as "cyber privateers" and they are to fight:

"any foreign group that conducts cyber-enabled crime against the United States Government, a United States person, or United States interests, and that is not an institutional part of a foreign government or wholly operated under a foreign government’s direction"

Additionally, the Pentagon plans to crack down on the transfer of technology and intellectual property theft.   Once again, this is not a domestic taking of intellectual property without permission, a foundational practice for most AI models.

The former Defense Department is focusing on foreign appropriators of U.S. technology/intellectual property.  Elected officials have long used the military as our global police force.  For the last few decades it took only the President to start or enter an international conflict.

Private equity underwriters' (PEU) political influence soared over that period as they flipped affiliates doing big business with Uncle Sam, hired former public servants in non-lobbying, lobbying roles and preserved their highly unpopular preferred "carried interest" taxation.

TechGods noted and copied the PEU playbook, albeit a bit more brashly.  

The Pentagon identified "suspect entities" in China, Russia and Iran and published a list.  

Pete Hegseth must have used a Ginshu knife when it came to Tsinghua University in Beijing.  Their Master of Global Affairs is OK while their Center for International Security and Strategy is verboten.

Might Blackstone co-founder Stephen Schwarzman have influenced Trump II's thinking?  Schwarzman is the Founding Trustee of Tsinghua University's Schwarzman Scholars.

Trump II disdains knowledge, thus his propensity to attack universities.  He disdains responsibility, accountability and consistency as they interfere with his ability to launch his signature "savage whims."

Trump II does things in each and every present moment that maximize his image and reflect his greatness.  He wants to protect his crony friends and loyal members of the Red Team.  This creates a Swiss Cheese framework to those paying attention.  It's cheese in this instance and a hole in another.

If he can break their minds then Trump II has them.  

To sum up:

Global affairs, supporter/friend/neighbor/PEU - OK  

International Security and Strategy, lacking political Red Team heavyweight - Not OK

And that's why so many tune him out.  This simply adds to the danger as politicians Red & Blue love PEU and their new TechGod brethren.  Increasingly, more are one in a marriage of dark forces.

Offending "Epstein-Junkermann" Post

Google sent a notice that one of my blog posts violated copyright laws in a specific country.  No country was identified.  

The offending post is titled "Epstein's Junkermann PEU."  I posted it in February 2026. 

The piece dealt with the Epstein files and the child sex predator's relationship with Nicole Junkermann, a European private equity underwriter (PEU).  

The communication stated an offending URL but provided none below that line:

Affected URL(s): 

 -----------------

A review of the post showed no remaining links.  The communication included the name of the person filing the complaint against PEU Report.  

I searched for a reporter, author or writer by that name and found none.  A photographer had a similar name but differed in the spelling of their first name.  I did find a trainee solicitor with that name at a London law firm.

I wondered if an image was the source of the problem as I used a photo from a Business Magazine (UK) article and added images of Jeffrey Epstein, NJF Capital and NJF Private Equity.

I also included a graphic with an e-mail communication between Nicole Junkerman and Jeffrey Epstein.  This e-mail was at one time included in the DOJ's Epstein files release, which is how I obtained it.

The content of the post is below (all my words):

(introductory image - compliation as described above)

The Epstein Library has curious functionality.  Yesterday I could search the last name Junkermann and see 4,000 results.  Today it shows zero.  

A search on that person's first name, Nicole, produced over 5,000 results.  I'll venture most belong to Junkermann but there is another Nicole that works for Deutsche Bank.  

Nicole Junkermann founded NJF Capital which invests in various transformative tech ventures.  It also has a sister firm, NJF Private Equity.  That makes her a private equity underwriter (PEU).  There aren't many who can pull off a TechGod/PEU combo.

In January 2014 TechGoddess Nicole Junkermann informed Jeffrey Epstein that she had "split up with mario."  

Junkermann experienced the creep in Jeffrey Epstein.  He lorded over her as ungrateful and ungiving, but she gave it right back.

(image of their communication) 

Jeffrey and his wingman, Donald, missed the part about insiders not speaking badly about other insiders.  Either would trash you in a heartbeat. 

The DOJ's Epstein Library is another window into politicians Red & Blue love PEU and their new TechGod brethren where increasingly, more are one.

Google informed me that I could appeal the decision.  I began the "counter notice" form but was quickly stymied as it required a reference number and none was provided in the e-mail. 

I deleted the introductory photo, which is the only thing that included copyright material.  The post remained hidden from public view.

Google has enabled me to share my thoughts on multiple blogs over the years and for that I am grateful.  But I must say their technology enabled, non-customer service is unparalleled in its complexity and near undecipherability.  

One can see how little information Google shared with me (light yellow boxes) relative to what they provide to Lumen. 

I have no idea how to inform Google that I removed the offending picture which included a portion of copyrighted material (potentially considered fair use for an anonymous, no-revenue blog).  

Why would Google or a London law firm be interested in my post on Jeffrey Epstein and Nicole Junkermann?  I have not a clue.  The post had 299 views, so it was not widely read.

Politicians Red & Blue love PEU and their new TechGod brethren.  Increasingly, more are one and the globe rotates around their axis, maximizing their status, enrichment and pleasure.

Update 8-19-26:  FT noted the rise of the PEU/TechGod class:

Batshit TechGods Free Wheeling with Uncle Sam's Backing

The U.S. government once served as a counterbalance to abusive worker treatment.  It now facilitates it.

I watched private equity underwriters (PEU) abuse hospice workers after our takeover by TPG and Welsh Carson Anderson & Stowe.  

Nurses were made salaried and their work hours exploded due to purposeful understaffing, inefficient computer software and hard (unreasonable) productivity targets.  Nurses donated their personal and family time to the corporation in order to complete visit and admission documentation.  

The new "all organization" software (business and clinical) stole mileage reimbursement from workers.  It took hours each week to investigate and correct the shortfall in miles and worked hours. I wrote the Department of Labor in San Antonio.  Crickets.

TechGods took the PEU playbook and ran with it.  They paint a pastoral human future under AI with new free time, everyone having a penthouse and robots doing menial tasks.  

Their present is very different.  Many espouse the Chinese 96 hour workweek and workers are subject to ever changing priorities and irrational management demands.  A Meta worker was recently belittled for asking about the possible return of a former time off benefit called Meta Days.

There is no body of knowledge that they can't ignore or corrupt.  Kalshi's CEO doesn't care about management theory or laws as his gambling site parades around as a "derivatives" play.  

OpenAI's Sam Altman knows "secrets" about all human beings.  All they need to do is "stay busy." This also ignores the tenants of what brings pride in work.  

The model for insane management is Palantir CEO Alex Karp, who has the full throated backing of the U.S. government.  The Pentagon has a $244 million line item simply stating "fund Palantir."

It is a dangerous time with so many powerful people chasing massive returns so cavalierly.  The dangle of an ideal future or the need to beat China is the excuse for them to flout management practices, laws and basic human decency.  

There is no group to hear opposition given politicians Red & Blue love PEU and their new TechGod brethren.  Increasingly, more are one and for that, many suffer.

Lakers Get Quick PEU Flip

ESPN broke the news of Thrive Capital's purchase of Mark Walters' LA Lakers ownership stake.   

SB Nation noted the short time period of Walters' franchise ownership through TWG Global.

Not even 10 full months since Mark Walter officially acquired the franchise, he sold it to Bob Iger and Josh Kushner on Wednesday. If Walter’s purchase of the team was shocking, it’s hard to find a word to describe this transaction. 

 The sale of the team, though, came at the same time as Walter is being investigated by the FBI for loan fraud.

My wise friend had already made this connection:

"What a convenient way to bypass Walters' prosecution by having Bob Iger and Josh Kushner buy a majority stake in the LA Lakers at $12.5 billion valuation. Sometimes you go to jail for violating federal and state regulations, other times you just have to share the bounty.  "JUST - US" is alive and thriving."

Walters may have misrepresented the value of TWG/Guggenheim Partners holdings in a $10 billion investment deal with Mubadala, a Dubai based sovereign wealth fund.

An interesting aside will be the fate of former UVA basketball coach Tony Bennett, known for his ethical principles and squeaky clean image.  The Lakers named Bennett their Draft Advisor. in February 

Walters said he sold because the opportunity came up to flip the team and make a quick $2.5 billion.  Really?  A cash grab outweighed the opportunity to own a rich, storied pro basketball franchise?  

Flashback to his statement in October 2025 at the time of purchase:

The Los Angeles Lakers are one of the most iconic franchises in all of sports, defined by a history of excellence and the relentless pursuit of greatness.  Few teams carry the legacy and global influence of the Lakers, and it’s a privilege to work alongside Jeanie Buss as we maintain that excellence and set the standard for success in this new era, both on and off the court. - Lakers new owner Mark Walter

It was a privilege to briefly and barely work alongside....

This era of greed and the quick flip is brought to you by questionable PEUs and their TechGod brethren.  Both groups' political connections provide regulatory advantage, preferential legal treatment in times of trouble and a tax code all their own.  That deal is not for you.

From "Greatest" to "Greediest"

It was foretold that in the ashes of the greatest generation would rise a class of grifters, conmen and ne'er-do-wells.  Such a time has come to pass, courtesy of elected officials, private equity underwriters (PEU) and TechGods.

A handshake was once one's word, their personal bond.  Entities now have beneficial owners such that the people behind them are unknown.  PEU's can on all sides of a deal, a carnival side show of the multi-armed man in a hall of mirrors, thus giving the impression of being at arm's length in multiple directions simultaneously.

Elections were won by votes based on barnstorming and word of mouth.  The most powerful court in the land negated that practice by awarding money free speech rights.  

Wisdom, knowledge and virtue have been replaced by insolence, sloth and whimsy.  

Christ has been pushed aside for Old Testament Kings.  

Justice turned into "Just Us."

Violence was to be avoided, only a last resort.  Now those in charge look to punch first, seeking an immediate knockout.  

Truth telling was once an obligation of great leaders.  Spin has replaced that, with the greatest fawning aimed at the most powerful.  Mirror, mirror.

Charlatans promise absurd things to divert attention away from their mendacious machinations.  The people are too exhausted trying to get by to challenge any of their nonsense.  The blather floats in the airwaves and bobs around the internet.

Politicians Red & Blue love PEU and their new TechGod brethren.  Increasingly, more are one.  Together they remake the world to fulfill their dark dreams of obscene personal wealth by any means possible.  For that many suffer.

Update 8-13-26:  This post came from these words shared by my wise friend regarding his grandfather.

I think of him and men of his caliber and era often. They believed in the country and sacrificed heavily for it. They were not perfect, of course. But they would never profiteer and betray the principles of the Constitution or their countrymen. 

The current crop of hooligans dishonor their sacrifices and memory. They dismantle what our forefathers defended. Not only do I question their allegiances, but these guys and Trump's crew all dance to the same tune from The Greatest Show on Earth , never enough! 

They do not care what they destroy or who they destroy. Traitorous. I would not be surprised if Palantir CEO Alex Karp Took the playbook from Sheldon Adelson with the news media. Control the data and control the outlets.

Private equity is mankind's "highest calling" according to Carlyle co-founder David Rubenstein.  It is so powerful it has people speaking from the afterlife:

Thus endeth the lesson.