Tuesday, May 4, 2010

PEU's Go on Press Offensive

Private equity underwriters (PEU's) released data showing their impact on employment in the U.S. Trade group talking points are below, with my commentary in italics.

Private equity backed companies employ more than six million people and as many as eleven million. These employees can contribute to corporate political action committees.

There are nearly 9.500 private equity companies in the U.S. They can now buy ads pushing political candidates friendly to their issues.

PEU's invested more than $1 trillion in new capital into nearly 9,500 U.S. companies during the past 10 years. They expect to flip that for at least $2 trillion.

Why the press offensive? At least two reasons. One, the report highlights the importance of private equity as financial reform progresses with a PEU free pass.

Two, the PEU trade group pressed for another year of preferred taxation on carried interest, giving the Obama Deficit Commission time to do their work. It happens that co-chair Erskine Bowles founded Carousel Capital, a private equity firm. Bowles remains a Senior Adviser for the PEU.

I have more information for the PEU Council. It's a partial list of their members who've visited the White House. The Blues and Reds are a courtin' the PEU boys.