Saturday, March 31, 2018

Carlyle Group's Three News Stories: Disturbing Pattern Emerges

The media caught on to Carlyle's funneling huge amount of affiliate cash to the PEU parent.  It happened with ManorCare via a sale/leaseback of nursing home facilities and with Philadelphia Energy Solutions (PES) via the classic PEU debt for dividend move.  Both ManorCare and PES declared bankruptcy in 2018.

PES owes millions in unpaid taxes, meaning finance people sent millions from PES to parent Carlyle vs. paying accrued taxes.  Carlyle now owns a CFO consulting firm so it can coach other finance people to act in PEU ways.

For this Carlyle co-founder David Rubenstein gets a Legend in Leadership award from Yale.School of Management.  Rubenstein is a "pioneer of modern private equity," one of the original greed and leverage boys.  His former wife said all Rubenstein cares about is money.  If that's the mark of great leadership something is very wrong with management theory/practice.