CNBC reported on a federal labor initiative in the midst of a coronavirus pandemic:
Savers using 401(k) plans may soon be able to invest their retirement money in private equity, long considered strictly the province of the well-to-do.Labor Secretary Eugene Scalia's former law firm has a private equity practice. Their website states:
The U.S. Labor Department issued guidance Wednesday stipulating that business owners with 401(k) plans can more safely offer certain funds with a private equity component to their employees.
Gibson, Dunn, Crutcher’s Private Equity Practice represents many of the largest and most active financial sponsors, sovereign wealth funds and other investor groups around the world.
We provide a full-service solution to our private equity clients. We handle deals ranging from venture and growth capital transactions through multibillion-dollar club deals. In close coordination with lawyers in other Gibson Dunn practice areas, we provide a comprehensive service including:
Post-acquisition, we work with client portfolio companies on a wide range of matters, including business and financial restructurings, add-on acquisitions and leveraged recaps. We handle private equity exit transactions, including trade sales and initial public offerings. Because of our international reach, we are involved in some of the most complex multijurisdictional deals.
- Due diligence and compliance
- Deal negotiation, documentation and execution
- Tax structuring
- Acquisition finance
- Corporate governance
- Management equity
We also work closely with the fund formation teams of our Investment Funds Practice Group, providing cutting-edge sophistication in the organization of private investment funds and fund management companies, as well as other fund-related matters.Scalia was sworn in as Labor Secretary on September 19, 2019. That's fast work on behalf of the greed and leverage boys, major clients of his former law firm. Secretary Scalia spoke on behalf of the change in a press release.
“This Information Letter will help Americans saving for retirement gain access to alternative investments that often provide strong returns,” U.S. Secretary of Labor Eugene Scalia said. “The Letter helps level the playing field for ordinary investors and is another step by the Department to ensure that ordinary people investing for retirement have the opportunities they need for a secure retirement.”More like PEU founders will gain access to a new, massive pot of money, courtesy once again of Uncle Sam.
Two former Carlyle Group executives head up the Federal Reserve Bank. Fed Chief Jay Powell and Vice Chair Randall Quarles turned Carlyle's fortunes around. The Carlyle Group's stock price is up from $17 on March 18th to $30 today, a 76% increase.
Who knew a global pandemic would be good for the PEU boys? In America politicians Red and Blue love PEU.
Time will reveal where Scalia ends up after his public service. Will he go back to Gibson Dunn or officially become a PEU boy?
Footnote: Gibson Dunn helped Carlyle buy Synagro Technologies, the firm that bribed the wife of U.S. Congressman John Conyers.
Update 6-5-20: Stocks are set to roar due to a surprise add in jobs from Labor Department statistics.
...the Labor Department noted inconsistent classifications of workers due to pandemic-related effects meant the unemployment rate would have been about 3 percentage points higher than was actually reported.Carlyle Group stock is up $1.50 to $31.25 a share.
