Tuesday, November 23, 2010

Greedier Carlyle to Cash in on Kinder Affiliate

Kinder Morgan and its 180 subsidiaries will go public in The Carlyle Group's latest profit-gasm, a $1.5 billion IPO.  Yes, Carlyle has to share proceeds with Riverstone Holdings, its joint venture energy partner, and two other private equity underwriters (PEU's).  Together, Carlyle & Riverstone hold 22.4% of the company.

Carlyle and company bled Kinder Morgan of distributions during its ownership. 

What is Carlyle's total profit with IPO proceeds?  They'll tell investors, but the public has no right to know.  It's "non-public information."  For those curious about The Carlyle Group's "great cash in," it continued with Britax and Philosophy sales.  Profits from sales have Carlyle back on rocket track.

What Carlyle won't do with the money?  Pay back Carlyle Capital Corporation investors or Texas taxpayers.  Meanwhile, private equity tax rates remain low.  There's nothing kind about PEU's.