Tuesday, March 3, 2009

Taxpayer Financing for AIG's ILFC?

Uncle Sam may provide levered debt for the sale of AIG's aircraft leasing division. Will it be on the cheap? Rumored bidders include The Carlyle Group, Greenbriar Equity and Onex Partners.

Funny, Carlyle has over $20 billion in cash and just closed a $533 million Mezzanine fund. They raised $1 billion to acquire financial firms or distressed debt, with a $3 billion target. So why should taxpayers subsidize private equity underwriter (PEU) financing?