Wednesday, March 4, 2015

Carlyle Needs Oil Bottom for Backdoor Takeovers

CNBC interviewed Carlyle Grooup co-founder David Rubenstein on oil patch investments.  Yahoo Finance reported:

Carlyle Group's David Rubenstein told CNBC on Tuesday he is not waiting for oil to hit a bottom before investing in beaten-up energy companies.

"The great fortunes are usually made when prices are low. They're not usually made when you buy at the top and think they'll get higher," he said in a "Squawk Box" interview. "Prices are very low in energy, and a lot of people are scrambling, and that's where you make a lot of money."

Rubenstein has called distressed debt the single greatest new energy opportunity to invest," saying investors can by debt cheap and potentially take control of companies
Ask Brinton's founding family how that backdoor takeover went.  If oil companies conduct prepackaged bankruptcies with debt holders Carlyle must be at the table.  That means buying debt before the bottom, the triggering event that gives Carlyle the chance to pounce.