Wall Street on Parade stated:
Across Florida, struggling families and senior citizens are opening their homeowners’ insurance renewal notices to learn that their policy will now cost them $800 to $1200 more than it did last year.
Rates are going up by 30 to 40 percent in many cases – during a National Emergency. Making the outrage among residents more palpable is the fact that a hurricane didn’t even touch down in Florida in 2020.
That sounds like the legendary returns of private equity underwriters, also known as the greed and leverage boys. Forbes wrote in 2012:
"People generally don't love investors and people who have made great wealth in every society," says Carlyle Group co-founder David Rubenstein. "In the past no investor ever asked me how many jobs I created; they never cared. But they did say, 'Give me my rate of return.' " Rubenstein adds: "We have made a lot of money for our investors, and most of them, not all, are big public pension funds who seem to like the returns."
Carlyle's private equity funds have averaged 18% annual net internal rates of returns since inception
Carlyle's co-CEO Glenn Youngkin spoke at the Morgan Stanley Virtual Conference in June 2020. He highlighted Carlyle's 97% stake in re-insuror Fortitude Re.
Fortitude Re has $43 billion of total assets and as you will all remember, as part of this transaction, roughly $6 billion of those assets are being rotated into private capital strategies managed by Carlyle. So we're excited about this final step. It solidifies Fortitude as a source of long-term capital for us but on top of that, now, we're well positioned to grow through acquisitions by looking at adding on additional runoff blocks of insurance portfolios.
We do make money here in three ways. We of course have our investment income off of the balance sheet investment that we made in Fortitude. And then as the assets rotate into Carlyle Funds or investment activities, we of course earn management fees from those assets and have the potential to earn performance revenues off of them as well.
Youngkin is currently the Red team nominee for Virginia governor. The Forbes piece noted Carlyle's mining of former government officials
Carlyle also amassed a slew of former government heavyweights--and an accompanying cloak-and-dagger reputation.
"The early success in defense helped us understand that we had a core skill of dealing with businesses that are heavily impacted by government policy and regulation such as transportation, health care, telecommunications, etc.," says Carlyle Group co-founder Daniel D'Aniello.
What could Glenn Youngkin do for Carlyle as Virginia's governor? How will Virginia residents pay for Carlyle to earn profits in multiple ways?
