Friday, October 14, 2011

Carlyle Group Fundraising: Top Ten Tips

Carlyle Group co-founder and front man David Rubenstein spoke at the British private equity underwriter (PEU) gathering.  Amidst the greedy, stiff upper lips Rubenstein shared his top 10 fundraising tips:

1) Believe in what you are doing
2) Know what you are talking about
3) Make sure you enjoy what you are doing
4) Listen to potential investors
5) Make sure your materials back up what you are saying
That's why the following don't make Carlyle's materials, Carlyle Capital Corporation, Blue Wave Partners, Semgroup, Oriental Trading, Stallion Oilfield Service, IMO Carwash, Hawaiian Telecom, Edscha, and Verari.  All went bankrupt under Carlyle ownership.  Other blemishes include China Forestry and China Argitech with accounting scandals and LifeCare Hospitals, which has the highest patient death toll after Hurricane Katrina.  Here's the rest of David's Top Ten.

6) Follow up
7) Know how to ask for money
8) Make sure you say thank you when you get it
9) Accept what you are given
10) Accept “no” for an answer gracefully.
Meanwhile, other PEU leaders waxed on and off regarding mega deals returning.  And Carlyle's Charles Rossotti recommended it's "smarter to damn the torpedoes" and "grow the federal business faster." 

Even though Carlyle loves federal business, it hates paying taxes.  The Carlyle Group is a virtual nonprofit, paying a mere 1% of profits in taxes.  Add the nonprofit nature of most of Carlyle's debt securitizations and things become more distorted.