Wednesday, November 24, 2021

Youngkin Cannot Disparge Carlyle Group until September 2025

Virginia's Governor Elect for the Red Team Glenn Youngkin will be sworn into office on January 15, 2022.  The former Co-CEO for The Carlyle Group, a politically connected private equity underwriter (PEU), left Carlyle in September 2020.  His employment agreement with Carlyle has a Non-Disparagement Clause that runs for five years after separation.  It states:

Employer and Employee covenant and agree that, both during Employee’s employment with Employer and for a period of five years after the Termination Date, (i) Employee shall not disparage Carlyle, the Founders and Carlyle’s employees, directors or businesses or members of Carlyle’s Executive and Management Committees and (ii) Carlyle shall not authorize, and the Founders and Carlyle’s directors and members of Carlyle’s Executive and Management Committees shall not make, disparaging remarks about Employee. The previous sentence shall not apply, however, in the case of any statement that is made (x) in testimony pursuant to a court order, subpoena or legal process or (y) to a court, mediator, government agency or arbitrator in connection with any litigation or dispute between Employer and Employee.

As Carlyle Co-CEO Youngkin headed the firm's infrastructure efforts.  The Carlyle Group abandoned its lead developer role for deep-water oil terminal expansion for the Port of Corpus Christi, known as Harbor Island.  Glenn Youngkin's abdication left a roughly $400 million hole in that public-private partnership.  

Texas officials long looked the other way regarding Carlyle.  In 2004 Texas Governor Rick Perry provided $35 million to Carlyle affiliate Vought Aircraft Aviation for 3,000 jobs.  Come 2010 Carlyle cut 35 positions in the Dallas-Fort Worth area, garnering $1 million per job eliminated.

Youngkin and Carlyle's executive team chose not to pay back Texas taxpayers when they flipped Vought. for $1.44 billion

The Carlyle Group bid on Virginia Ports operations in 2012.   It later withdrew their proposal. 

The firm told officials it's no longer interested in pursuing a long-term lease of the Virginia Port Authority's terminals.
That ended prior to Carlyle inking a lead developer role.  Youngkin has been on the abandonment side of at least one public-private partnership and faced no public scrutiny. 

Virginia voters have a right to expect Glenn Youngkin not to have any restrictive clauses impeding his job as Virginia's Governor.   That his loyalty to Carlyle could stand above his oath to Virginians is cause for concern.

Update 11-26-21:  The head of Youngkin's transition team is a PEU.  Jeff Goettman founded CameronBlue Capital, a private equity firm in 2006. Previously, Mr. Goettman was a Managing Member at Thayer Capital Partners, a Washington, D.C. based private equity firm.  

The man who helped Youngkin avoid his actual record got hired by Narrative Strategies.  He once worked for Trump's disastrous Coronavirus Task Force.

Also, a Youngkin spokesperson confirmed transition officials have been asked to sign nondisclosure agreements.  Is there also a non-disparagement clause?