Carlyle Group co-founder David Rubenstein's "view is that private equity is the highest calling of mankind," a sentiment recently echoed by CNBC's Joe Kernen. He shared that in an interview with CalPERS Chief Investment Officer Nicole Musicco. The video is an impressive eight minute commercial for private equity underwriters (PEU)
Consider the PEU "calling":
Flipping companies often at the expense of workers, juicing returns via high levels of leverage, mining cash from affiliates through an assortment of fees/special dividends and paying preferred taxes at lower "carried interest" rates.
Bleeding Uncle Sam's wallet, using "billionaire status" to drive public policy, crafting consummate political insider-ship that enables PEUs to use "non-lobbying" influence to read government tea leaves and ensure both political parties are servants to their willful greed.
Bloomberg interviewer Rubenstein and CalPERS Musicco did not disclose how much money CalPERS has invested in Carlyle's various funds.
In sharing historical background Rubenstein failed to mention CalPERS was an early equity investor in Carlyle. Failure to make the most basic disclosures is common in our PEU world.
Highest calling, God's work? Hardly. It's all about outsized earthly gains.
Update 9-15-23: Musicco will step down as CalPERS CIO at the end of September. She lasted 18 months in the role. Prior to CalPERS Musicco was a PEU with Redbird Capital Partners.
