Saturday, April 23, 2011

PEU Benefits: Girth or Dearth?

The PECKER Council commissioned a study by Price Waterhouse Coopers on the impact of private equity underwriters.  The PriceWaterhouse study begins on page 7 of the linked report.  Peruse it closely for how PEU's operate ethically.  It details how The Carlyle Group shot their load on Carlyle Capital Corporation, the canary for the 2008 financial crisis.  Pay attention to Carlyle Capital Cayman, short term repo financing of long term assets, Bear Stearns/Lehman Brothers' role in financing CCC and credit derivatives.

The world has seen at least six financial crises that arose largely because companies and banks were financing illiquid assets with short-term debt--McKinseyQuarterly. 

No systemic risk here, just peckers screwing somebody.  It's a never ending cycle.

Update 4-28-11:  Not surprisingly the biggest PECKERS come from politics.  Don your flak jacket, PECKERS are coming.

Update 4-30-11:  The Economist followed up with a "size matters" sexual innuendo piece on Carlyle.  For some reason Economist found only five Carlyle failures, when there were twice that many.  They did note the powerful impact of the DBD's, but failed to cite their Cayman connections or citizen supplied corporate welfare.  Posing for an IPO, Carlyle shows lots of skin.  Not a pretty sight for fat men.

Update 6-23-11:  Carlyle seeks to penetrate Africa's lower region. Recall how Carlyle's Rubenstein compared the PEU buyout boom to sex?