Dunkin' Socially Irresponsible

Dunkin' Donuts pulled a blackface advertisement in Thailand for its racial insensitivity.  Dunkin's most recent proxy statement stated:

Dunkin’ Brands strives to be recognized as a company that responsibly serves our guests, franchisees, employees, communities, business partners and the interests of our planet.

Who knew racism was in the best interest of our planet?  The Carlyle Group effectively owned Dunkin' Donuts from 2006 to 2012, when it took its final check for $150 million.  Did six years of Carlyle culture, i.e. greed, lead to this ad campaign?  Dunkin' Board member and Carlyle Group Managing Director Sandra Horbach could shed light on this matter, unless she's the one posing in darkface. 

Obama's PEU Bargain: Lower Affiliate Taxes

President Obama wants to lower corporate taxes, which will help private equity underwriters (PEU's).  This move should get President Obama a number of $200,000 speeches at PEU investors meetings, much like the Presidents Clinton, Past President Bill and Hillary the Hopeful.  Hillary recently spoke at KKR's and The Carlyle Group's annual investor meetings for $200,000 a pop.  Surely, PEU Blackstone will ensure an Obama payday.

Blackstone has poured billions of dollars into the market... buying up thousands of homes at dirt-cheap prices, fixing them up, and then selling them for a profit.

Obama is setting himself up for a PEU life. Which PEU town will he choose for retirement?

PEU Investment Fees Rebound

Financial News reported on PEU fees earned by investment banks:

Figures to August 28 show investment banks have reaped income of $10.2 billion from private equity deals so far this year, the highest level since the same period in 2007 when revenue was $13.4 billion. 

JP Morgan reaped the highest amount of income from these deals, collecting $1.1 billion. Goldman Sachs is ranked second with $982 million, and Credit Suisse received $874 million in fees, according to the data provider.

Fees have been driven by high levels of activity from some of the largest buyout firms in the US. Apollo Global Management is ranked first by fees paid, Carlyle Group second and Bain Capital third. 

The figures include exits, new entry deals, and portfolio company M&A deals, as well as any related equity capital markets and debt capital markets loans, Dealogic said.

Top Ten PEU's are:

1. Apollo Global Management (US) - $607 million

2. Carlyle Group (US) - $485 million

3. Bain Capital (US) - $442 million

4. Blackstone Group (US) - $370 million

5. TPG Capital (US) - $342 million

6. 3G Capital Partners (Brazil) - $331 million

7. CVC Capital Partners (UK) - $318 million

8. Kohlberg Kravis Roberts (US) - $280 million

9. Advent International (US) - $248 million

10. Clayton Dubilier & Rice (US) - $219 million 

Best year since 2007, which had many frothy PEU deals.  What does that portend for 2014?

Engler & Carlyle Exec Join Blackford Capital's Michigan PEU

CBS Detroit reported:

Former Michigan Gov. John Engler and three business leaders have formed an advisory board with the Grand Rapids-based private equity firm Blackford Capital to target Michigan-based investments.

Engler's Business Roundtable played nice with the Obama administration on health reform.  Obama White House officials deferred to the Business Roundtable in ways surprising to those who believed Barak Obama's campaign rhetoric in 2008.  BR and the White House are teaming up on immigration reform and lowering corporate taxes, possibly to levels enjoyed by private equity underwriters (PEU's).

2013 finds Detroit defaulting on its municipal debt.  PEU's like economic turmoil.  It provides opportunities to buy companies on the cheap.  The Carlyle Group took advantage of Uncle Sam's wallet under Bush/Obama.  Carlyle milked direct taxpayer subsidies and preferred taxation to grow from $3.3 billion in assets to over $180 billion.

Blackford Capital tagged Mary Petrovich, Carlyle Group Senior Advisor, for their advisory board.  Carlyle is seeding a number of targeted PEU firms from homeland security to Michigan-based investments.   PEU's are ubiquitous and beloved by politicians Red and Blue.

Professional PEU Sports

Private equity underwriters (PEU's) may not only own your rental home, they could be the owners of your favorite professional sports team.  The New Jersey Devils' new PEU owners come from Apollo Global Management and Blackstone.  Dealbook reported on other PEU professional teams:

A group of private equity moguls, including Bain Capital’s Steve Pagliuca, already owns the Boston Celtics. And Tom Gores of Platinum Equity controls the Detroit Pistons alongside his firm. Since 2002, the principal owner of the Boston Red Sox has been John W. Henry, who took over Liverpool Football Club in the fall of 2010.

How might you be supporting a billionaire's trophy properties in our PEU world?   

Update 4-19-22:  A Russian oligarch put Chelsea FC up for sale and one bidder is U.S. oligarch Bain Capital's Steve Pagliuca.  Carlyle's David Rubenstein may team up and bid for the Washington Nationals MLB team.

Hillary's PEU Cred Strengthens with Carlyle Group Speech

Hillary Clinton will be a featured speaker at The Carlyle Group's investor conference in September.  This follows Clinton's talk at KKR's investor conference.  These $200,000 speaking events speak to Hillary's PEU cred.

Hillary follows Madeline Albright as a Carlyle Group headliner.  Some days it's hard to tell the difference between the CGI's, the Carlyle Group Investor and the Clinton Global Initiative meetings.  Red and Blue love PEU

PEU Rental Country

FT reported a crack in The Carlyle Group's 30% annual return meme from untimely real estate investing:

Carlyle told investors a few months ago that they should expect to receive no more than 40 cents on the dollar on its second €763m real estate fund focused on Europe. 

I expect journalist Henny Sender to pay the price for publishing anything negative about The Carlyle Group.

Consider the bizarre world Sender reveals, where PEU's invest in rental real estate:

Blackstone is moving on to apartment complexes, and in mid-August it bought a $2.7bn portfolio of them from a unit of General Electric.

To further lower Blackstone’s own cost of funds, it is looking at securitising the cash flows it receives from renting out the $6bn of single family homes it has bought, repaired and leased out. 

Next up, PEU towns and regions.  Will you live in Blackstone or Carlyle country?

Update 10-24-13:  Carlyle recently announced investing in trailer parks and up to $1 million housing in Atlanta's north side.    

Update 6-9-22: