Friday, June 3, 2011

Carlyle Group's Sweet Spot

The Carlyle Group's IPO filing is set for the third quarter.  The private equity underwriter (PEU) is in the process of picking investment bankers Fortune projects Carlyle's value at $10 billion.

Carlyle affiliate BankUnited works to acquire New York based Herald Bank with the help of Skadden Arps.  Carlyle & company received a $2.3 billion cash gift from the FDIC for BankUnited.  They've wanted to crack the New York market since buying BankUnited.  First, bedbugs invaded NYC, now it's PEU's.

Where there's distress, bloodsucking PEU's lurk.  Politicians help by intentionally or unintentionally creating conditions for distress, a fertile discount acquisition environment.  Afterward, elected leaders craft favorable regulations, even sending large chunks of government business to PEU affiliates. 

New White House counsel Kathryn Ruemmler had The Carlyle Group and Lehman Brothers as clients while at Latham & Watkins.  Thomson Reuters reported:

White House counsel generally deals with judicial nominations, congressional investigations and defending the president's constitutional powers.
Carlyle remains in the sweet spot of the America's Government-Corporate Monstrosity, Eisenhower's MIC on steroids.

After the IPO Carlyle's co-founders will serve as Chairman and co-CEO's.  One Carlyle Managing Director could use his IPO proceeds to keep a property from foreclosure