Condi Rice PEU Strategist

Face the Nation interviewed former Secretary of State Condi Rice this past weekend.  I wondered if she had any private equity underwriter (PEU) ties. 

In 2012 WaPo questioned if Rice would be the new face of venture capital after her deal with Khosla Ventures.  Private Equity News reported on that same development.  Vinod Khosla is the billionaire who refuses to allow access to a public beach.

In 2016 Rice struck a deal with RWC Partners.  RWC rebranded to Redwheel in 2022.

Politicians Red and Blue love PEU and increasingly, more are one.

PEU Pendulum's Second Fund

Pendulum Holdings is offering its second private equity fund according to SEC filings.  Pendulum Opportunities Program Vehicle II hopes to raise $350 million with a minimum $10 million investment.  

Related parties include:

Founder Elbert (Robbie) Robinson, financial advisor to former President Barack Obama.

Pendulum Opportunities PV II GP LLC

Pendulum Opportunities LLC

D'Rita Robinson (of same address as Founder Robbie)

Sales compensation will go to:

Pendulum Securities, LLC (same address as Founder Robbie)

BDT & Company, LLC (Chicago)

Pendulum offered their first private equity fund in 2021.  That $250 million fund required a minimum $1 million investment.

The pendulum stuck in favor of the greed and leverage boys since 2000.  President Obama did his part to keep the profit spigot wide open for Blackstone, Carlyle and their PEU brethren.  There are few signs that the pendulum will swing back in favor of the common person.  

Politicians Red and Blue love PEU and increasingly, more are one.

Peter Clare Taps Out at Carlyle

The Carlyle Group's Peter Clare announced his retirement effective April 30th.  The 57 year old Clare recently was mentioned as a possible CEO candidate for the politically connected private equity underwriter (PEU).

Carlyle hired "streetfighter" Harvey Schwartz for the CEO position.  Schwartz has been in that role for twelve days.

Clare will stop serving as an executive officer and will step down from the board effective immediately.

How did Schwartz get Clare to tap out so quickly?  

Mr. Clare formerly was the Chief Investment Officer of Corporate Private Equity, Chairman of the Americas and Chair of the US Buyout and Growth Investment committees. Mr. Clare also previously served as the Co-Head of the US Buyout and Growth team and as Deputy Chief Investment Officer of the Company’s CPE segment and previously was a member of Carlyle’s Board of Directors from January 2018-February 2023.

It's still February.  Who's next on the list?  

Power disruption and consolidation...it's the PEU way.

Update:  FT's piece on Clare's retirement echoes some of the same themes:

On a call the firm hosted a day after Schwartz’s hiring, Clare ... assured investors in Carlyle funds that they would support the new CEO.

Schwarzman's $1.26 Billion Pay from Blackstone

Reuters reported Blackstone Group co-founder Stephen Schwarzman received over $1 billion in pay and dividends in 2022.

Forbes pegged Schwarzman's wealth at $2.5 billion in 2006.  They cited his wealth at $28.1 billion in 2023.  Forbes didn't say how the Trump tax cuts helped boost his wealth over 11x. 

That thumb's up is a bipartisan one for the Red and Blue political teams keeping private equity's preferred taxation in place over that period.  Elected officials did so in direct opposition to public opinion.

Update 3-1-23:   For more on how Schwarzman shafts the little people.  He can do it directly by increasing rents nearly double the national average, evicting renters or indirectly through pension investment fees.

Fellow PEUs Support Banga for World Bank

The club for greed is rallying on behalf of President Biden's World Bank nominee Ajay Banga.  Former Carlyle Group managing director Afsaneh Beschloss expressed her support for fellow private equity underwriter (PEU) Banga.  At the time of her hiring at Carlyle Beschloss was treasurer and chief investment officer of the World Bank.  Beschloss left Carlyle to start Rock Creek Group in 2003.  

The firm is a leading global investment and advisory firm, active in emerging markets, alternatives, private equity and impact investing. 

Beschloss bio can be found under a number of global tampering organizations that cater to the PEU crowd.  

Banga is Vice Chairman of General Atlantic, a leading global PEU.  Prior to that he served as CEO for MasterCard.  At MasterCard Banga's helped Egypt go cashless as part of his public private partnership experience.

If confirmed Banga will replace David Malpass, who ran macroeconomic research firm Encima Global prior to his appointment by President Trump.  Malpass was Trump's Presidential Campaign manager for the 2016 election.

Carlyle could have used Beschloss' expertise with affiliate ARINC which earned a World Bank ban for "procurement violations" on an Egyptian airport project.

President Biden's cabinet is chock full of PEUs.  Having another greed and leverage boy at the World Bank is par for the course and portends misery for the common person the bank is supposed to help.

Update 3-12-23:  NYPo reported:

As its financial condition declined Silicon Valley Bank reached a deal with investment firm General Atlantic to sell $500 million of common stock, but that deal was dependent on the completion of its initial share sale.

PEU Legend Thomas H. Lee Ends HIs Life

Private equity pioneer Thomas H. Lee died of a self inflicted gunshot wound yesterday morning.  He was 78.  Lee founded the PE firm that bore his name in 1974.  He formed Lee Equity Partners in 2006.

I do not know the burdens Mr. Lee faced but his firm invested in Summit Behavioral Health and Bradford Health Services.

Summit - Provider of residential and outpatient substance use disorder treatment  services and acute psychiatric care.

Bradford - A substance use disorder (“SUD”) treatment provider in the Southeast. Bradford Health is a regional leader in the Southeast with a strong market presence in Alabama, Tennessee, Mississippi, North Carolina, and Arkansas.

Lee's $2 billion will not follow him.  It remains on this earthly plane.  

May his family and friends find solace in their memories of Mr. Lee.  Life is challenging, even for a politically connected private equity underwriter.

World Bank: Biden's Latest PEU Nomination

President Biden nominated yet another private equity underwriter (PEU) to a major position.  Reuters reported:

U.S. President Joe Biden on Thursday nominated business executive Ajay Banga to become president of the World Bank, lauding his experience forging public-private partnerships to address financial inclusion and climate change.

Banga retired from MasterCard in December 2021 and joined General Atlantic, a private equity powerhouse, on January 1, 2022.  

Also with General Atlantic is Managing Director Lord John Browne.  As BP's CEO Lord John Browne cut maintenance budget at its Texas City refinery.  That resulted in an explosion that killed fifteen in injured hundreds.

Browne joined General Atlantic before Banga.  I'm sure Lord John Browne and the General Atlantic team would be happy to consult with Banga should any World Bank projects blow up or get held for ransom.

Update 3-7-23:  Bloomberg reported:

General Atlantic is partnering with Abu Dhabi wealth fund ADQ and International Holding Co., the biggest listed company in the emirate, on a new venture that will invest in alternative assets.

A sovereign wealth fund is under consideration for "saving" Social Security.  Greed. fees and leverage are apparently the solution to all the world's ills.

Update 3-12-23:  NYPo reported:

As its financial condition declined Silicon Valley Bank reached a deal with investment firm General Atlantic to sell $500 million of common stock, but that deal was dependent on the completion of its initial share sale.

Update 4-4-23:  A private panel at this year's World Economic Forum discussed mobilizing private capital for Ukraine.

Participants included US Special Presidential Envoy for Climate John Kerry, Netherlands Prime Minister Mark Rutte, former British prime ministers Boris Johnson and Tony Blair, and Ukrainian President Volodymyr Zelensky attended via teleconference. 

 Three financiers participated, Larry Fink, chairman and CEO of BlackRock, Bill Ford, chairman and CEO of General Atlantic, and David Rubenstein, co-chairman of the Carlyle Group.

Update 12-14-23:  General Atlantic filed for a confidential IPO.