Thursday, September 16, 2010

Carlyle Group's New Wave: Hedge Funds

The Carlyle Group is exploring hedge funds. It's Blue Wave Partners hedge fund failed in 2008 prior to the financial implosion. A former Blue Wave employee was on the Democratic primary ballot in New York.

Bloomberg reported:

The renewed push into hedge funds and more liquid investments may help Carlyle should it decide to sell shares in an initial public offering, said Daniel Fannon, a San Francisco- based analyst at Jefferies & Co.
I don't know where Bloomberg's writers find a "buyout slump." Private equity underwriters, like Carlyle, are monetizing affiliates left and right. Using hedge funds to monetize Carlyle is no surprise, not given Carlyle co-founder David Rubenstein's McKinsey interview. The three co-founders, also known as DBD investors, will try to cash in at the apex, like Blackstone's Pete Peterson.

Guess who's ready to roll the dice in hedge funds? Public pensions in California and New Jersey. Carlyle's David Rubenstein can read the leaves, when he's not growing them.