Carlyle Group co-founder David Rubenstein is an investor in Paxos, a cryptocurrency service provider, and holds a giant stake in Carlyle despite selling shares recently.
Institutional Risk Analyst reported:
"...the wreckage in the world of private equity is building into a mountain of disappointment that could easily rival the crypto bust. “Over 140 VC-backed companies that went public in the US since 2020 had market capitalizations as of mid-June that are less than the amount of venture funding they raised,” according to PitchBook News. Add some leverage to that analysis and the PE market is yet another surprise waiting to happen."
Noted investment professional George Noble has been hammering private equity for rich affiliate valuations, i.e. not marking them down to reflect current value.
Cryptocurrencies and private equity underwriters (PEU) are the least deserving entities for public bailout, however saving David Rubenstein far outweighs any needs the common citizen might have. Right Chairman Powell?
Update 7-7-22: Carlyle Group COO Christopher Finn plans to retire at the end of the year.
Update 7-10-22: Canadian pension funds are losing big on crypto. How long before PEU markdowns add to those losses?
Wolf Street writes:
Stuff blows up because of leverage and cascades through the crypto space because everything’s interconnected.
Update 7-11-22: CalPERS sold $6 billion of PEU holdings at a 10% discount. CalPERS once owned a stake in Carlyle. It plans to compete with the greed and leverage boys by buying companies directly.
Update 8-2-22: A number of FDIC insured banks ran with the crypto devils and may go under as a result. How this is remotely OK is a question one should ask David Rubenstein and his former employee Jerome Powell.
Update 11-6-22: Nouriel Roubini wrote:
"The bubbles of private equity, property, venture capital and cryptocurrencies will burst now that the era of cheap money is over.
Update 11-8-22: Crypto run at FTX causes sale of FTX's non U.S. business to Binance.
Update 11-10-22: Bloomberg reported FTX with an $8 billion hole is careening toward bankruptcy.
Update 12-3-22: FTX is bankrupt. The head of BlackRock Inc. said most digital-asset firms won’t survive.
Update 12-11-22: Rich young people put their money into crypto, real estate and private equity, the three bubbles.
