Carlyle Group co-founder David Rubenstein spoke with Fox Business News Liz Claman regarding Russia's attack on Ukraine. Joining him was daughter Elle of Mannatree, a private equity underwriter (PEU) focused on healthy food and living.
Rubenstein called Vladimir Putin's invasion of Ukraine the most senseless war of his lifetime. He believes Western financial pressure will cause a demotivated Russian army to seize up. As a result Putin will need to blink giving the opportunity for negotiation.
Clayman did not ask either PEU about their plans to profit from the current situation. Consider this news:
Goldman Sachs and JPMorgan have been purchasing beaten-down corporate bonds tied to Russia in recent days, as hedge funds that specialize in buying cheap credit look to load up on the assets.
Carlyle has a credit arm that targets distressed assets. They have acquired a number of affiliates using debt as a back door.
Rubenstein and Carlyle have a sense of what is happening throughout the globe. Claman did not ask David about his extensive knowledge of China's leadership and how they might react going forward.
Former IMF Chief Ken Rogoff has an eye on China. David was married to Alice Rogoff and they have two daughters, Ellie of Mannatree and Alice of Declaration Partners, Rubenstein's family office.
Asia Times reported:
China is looking for alternatives to the US dollar as a reserve currency after Western nations froze the foreign assets of Russia’s central bank last week, former IMF chief economist Kenneth Rogoff told media on March 1.
The seizure of Russian sovereign assets has no precedent in postwar history, and sets a precedent for similar action against China in the event of hostilities over Taiwan.
“It's an absolutely radical measure to try to freeze assets at a major central bank. It's a break-the-glass moment,” said Rogoff, now a professor at Harvard University.
“It's a major thing,” Rogoff added. “I mean, if you want to look at the long-run picture of dollar dominance in the global economy, believe me, China's looking at this. They have, I don't know, US$3 trillion in dollar reserves.
Rest assured David Rubenstein, daughter Ellie of Mannatree and daughter Alice of Rubenstein's family office Declaration Partners are scrambling to make big money from a world economy headed towards shock. Did either daughter call Uncle Ken to discuss the changing order and how to best position their respective PEUs to profit from disruption? Did David Rubenstein call his former brother-in-law to find opportunity in crisis?
Reading tea leaves and building enabling political systems are key factors in PEU profits. Access to Uncle Sam's wallet and preferred taxation also helps.
CEO Dan Price of Seattle wrote on Twitter:
Can anyone explain why a billionaire who takes advantage of the system to exploit other people is called an "oligarch" in Russia and a "job creator" in America?
Can anyone explain why private equity continues to have preferred carried interest taxation or why elected officials ignore the will of the people to pander to the obscenely wealthy?
Putin may blink or he may do something more deranged. In the meantime the greed and leverage boys plus their daughters have serious money to make from all this disruption.
