Tuesday, November 10, 2009

Carlyle Owns Two of FinTech100, Complete with Fed Links

The Carlyle Group has two portfolio companies ready to help global financial firms. Belgium based FRSGlobal and OpenLink Financial are listed in the FinTech 100, an annual listing of the top financial technology vendors around the world.

FRSGlobal provides risk and regulatory solutions, a sweet spot as G-20 nations pursue financial regulatory reform.

OpenLink Financial provides cross-asset trading, risk management, and related portfolio management software solutions for the commodity, energy, and financial services markets globally. The BostonGlobe reported:

OpenLink’s blue chip client base of more than 150 customers worldwide includes 12 of the top 25 largest commodity and energy companies by market capitalization, eight of the largest financial institutions and 11 of the largest central banks, as well as major hedge funds and public utilities.

Does that mean a Carlyle affiliate could tap the databases of 11 of the largest central banks? The giant private equity underwriter (PEU) has more than one link to central banks, as Carlyle owns Talaris. It's cash automation equipment can send checks directly to the Federal Reserve.

The Carlyle Group also has affiliate Dunkin' Donuts and Hertz, which lobbied the Federal Reserve. Dunkin' lender CIT looked increasingly shaky. Hertz wanted relaxed terms for refinancing rental car fleets. Rather than tap their PEU owner for capital, Dunkin' & Hertz lobbied for public assistance. CIT imploded in a prepackaged bankruptcy. Watch Dunkin', Hertz and Carlyle closely. They didn't invest in lobbyists for naught.

Carlyle Group co-founder William Conway hates a level playing field. How can FRS Global, OpenLink Financial, Talaris, Hertz and Dunkin' tip the Fed board in his firm's financial favor? That would be some serious risk management.