Friday, June 4, 2010

Carlyle Group Steers Government Pocketbook

The Carlyle Group's corporate office is 1101 Pennsylvania Avenue, blocks down from the White House. It grew from $12 billion to $91 billion in managed funds during the Bush II Presidency. In 2008 Carlyle purchased huge government consulting firm, Booz, Allen, Hamilton (BAH), for $2.54 billion.

Booz Allen Hamilton, Inc. is a leading provider of consulting services to government agencies including the military and intelligence communities.

FT reported that Booz is in talks with AT Kearney, another huge consulting firm.

AT Kearney is a leading management consulting firm focused on providing strategic and operational advisory to the world's largest corporations.
Marrying corporate capabilities with Uncle Sam's checkbook via public private partnerships? That would be a winner, at least for Carlyle affiliates.

Carlyle co-founder William Conway hates a level playing field. A Booz-Kearney marriage could further tilt the table in Carlyle's favor.

If this seems a bit over the top, consider who's in charge of the BP oil catastrophe. Those with capabilities make the rules. For the most part, that's not Uncle Sam.

Booz knows his fat wallet pays. In 2009 BAH returned $550 million to investors.

Update: Talks between Booz & Co. and AT Kearney are off. Booz & Co. is different than Booz Allen Hamilton and not owned by the Carlyle Group. My apology for the error.