Tuesday, September 21, 2021

Mnuchin Goes PEU with Saudi Money

Former Treasury Secretary Steve Mnuchin formed Liberty Strategic Partners, a $2.5 billion private equity underwriter (PEU)  The fund's initial investment came in Cybereason.  Like every good PEU Liberty has a retired general on board.

Mnuchin will join the Cybereason Board of Directors, and Liberty’s Senior Advisor General Joseph F. Dunford (Ret.), who served as the 19th Chairman of the Joint Chief of Staff (2015-2019), will join the Cybereason Advisory Board.

General Dunford also serves on the board of Lockheed Martin Corporation.  

The Saudi Public Investment Fund provided a significant portion of Liberty's initial cash raise.  Mnuchin should ask Carlyle Group co-founder David Rubenstein about losing Middle East investor money.  Rubenstein had to mollify angry Kuwait investors after his "safe", 36 times levered mortgage backed securities fund, Carlyle Capital Corporation, imploded in spring 2008.  Mnuchin could also look at how the Saudi's treated journalist Jamal Khashoggi for insight into possible repercussions.

Founder Mnuchin hired a retired diplomat at Liberty Strategic Global, former U.S. Ambassador to Israel David Friedman.   President Biden's Cabinet is chock full of PEUs.  Biden's Defense and State Department chiefs worked for PEU Pine Island Capital.

Should Mnuchin become President he has a diplomat and general to draft back into public service, which for the last few decades turned into self service.