Difference between revisions of "Carlyle Group"

From Wikispooks
Jump to navigation Jump to search
m
Line 109: Line 109:
  
 
[[Category:Commerce and Industry]]
 
[[Category:Commerce and Industry]]
 +
[[Category:WpPages]]

Revision as of 10:58, 15 June 2011

The Carlyle Group, headquartered in Washington D.C., was established in 1987 as a "private global investment firm that originates, structures and acts as lead equity investor in management-led buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings," according to its website. Co-founded by William Conway, Jr. Among its many assets is Synagro, the largest processor of toxic sewage sludge in the USA. In March, 2010, Carlyle Group partnered with the Environmental Defense Fund.

Carlyle states that its "mission is to become the premier global private equity firm and to generate extraordinary returns while maintaining our good name and the good name of our partners. Toward that end, we have established a family of funds in the Carlyle name and a network of offices around the world. We maintain the highest standards of ethical conduct and employ a conservative, proven and disciplined approach to investing."

Background

The collection of influential characters who now work, have worked, or have invested in the group would make the most convinced conspiracy theorists incredulous. They include among others, John Major, former British Prime Minister; Fidel Ramos, former Philippines President; Park Tae Joon, former South Korean Prime Minister; Saudi Prince Al-Walid; Colin Powell, former Secretary of State; James Baker III, former Secretary of State; Caspar Weinberger, former Defense Secretary; Richard Darman, former White House Budget Director; the billionaire George Soros, and even some bin Laden family members. You can add Alice Albright, daughter of Madeleine Albright, former Secretary of State; Arthur Lewitt, former SEC head; William Kennard, former head of the FCC, to this list. Finally, add in the Europeans: Karl Otto Poehl, former Bundesbank president; the now-deceased Henri Martre, who was president of Aerospatiale; and Etienne Davignon, former president of the Belgian Generale Holding Company.


History

In March 2008, "Carlyle Capital, an affiliate of the private equity firm the Carlyle Group, said that its negotiations with lenders had broken down and that it was in default on $16.6 billion in loans. Carlyle had borrowed the money to buy mortgage securities backed by Fannie Mae and Freddie Mac. All appeared well until the prices of those bonds declined and the lenders made a margin call — a demand that Carlyle put up more collateral to cover the loans." [1]

The following is taken from Hoover's Online:

In 1987 T. Rowe Price director Edward Mathias brought together David Rubenstein, a former President Carter aide; Stephen Norris and Daniel D'Aniello, both executives with Marriott Corp.; William Conway, Jr., the CFO of MCI; and Greg Rosenbaum, a VP with a New York investment firm. They pooled their experience along with a load of money from T. Rowe Price Associates, Alex. Brown & Sons (now Deutsche Banc Alex. Brown), First Interstate (now part of Wells Fargo), and Pittsburgh's Mellon family to form a buyout firm.

Named after the Carlyle Hotel in New York, the firm opted to make Washington, DC, its headquarters so it wouldn't get lost in the crowd of New York investment firms. The company spent its first years investing in a mish-mash of companies, using Norris' and D'Aniello's Marriott experience to focus primarily on restaurant and food service companies (including Mexican restaurant chain Chi-Chi's).

In 1989 it wooed the well-connected Frank Carlucci, who had served as President Reagan's secretary of defense, to join the group. Soon thereafter, Carlyle began making more high-profile deals. That year it acquired Coldwell Banker's commercial real estate operations (sold 1996) and Caterair International, Marriott's airline food services (sold 1995).

Carlucci helped redirect the firm's focus to the downsizing defense industry. Among its targets were Harsco Corp. (1990), BDM International (1991), and LTV Corp.'s missile and aircraft units (1992). Carlyle helped overhaul their operations and make them attractive (for the right price) to the industry's elite, including Boeing and Lockheed Martin.

As the company's reputation grew, so did its cast of players. Among its new backers were James Baker and Richard Darman (both Reagan and Bush administration alums) and investor George Soros, who chipped in some $100 million into the Carlyle Partners L.P. buyout fund. With the help of its 'access capitalists' such as Baker and Saudi Prince al-Waleed bin Talal (whom the firm helped add to his fortune in a 1991 Citicorp stock transaction), Carlyle made deals in the Middle East and Western Europe (including a bailout of Euro Disney) in the mid-1990s.

While the firm continued to be a side in the iron triangle, acquiring such defense companies as aircraft castings maker Howmet in 1995, it picked up a grab bag of holdings, such as natural food grocer Fresh Fields Markets (1994; sold 1996); the quick turnaround helped build Carlyle's war chest. The firm also began investing in industrial-cleanup companies, seeing increased government spending as a major opportunity for profit.

As Carlyle's esteem rose, so did the number of its investors. In the late 1990s the firm launched buyout funds targeting Asia (closed 1999), Europe (closed 1998), Russia, and Latin America. At home, it faced a dwindling number of opportunities as the long-running bull market drove up prices and more investors chased fewer deals. Among those was its partnership with Cadbury Schweppes to buy the Dr Pepper Bottling Co. of Texas and merge it with its own American Bottling Co.

Carlyle began the new century by launching Carlyle Asset Management Group, selling its stake in Le Figaro to Socpresse, acquiring Rexnord and a majority stake in CSX Lines. Extending its reach, the company partnered with GMT Communications Partners and acquired Casema in 2003.

Carlyle Funds

The Carlyle Funds include:

  • U.S. Buyout Funds group; U.S. Venture Funds group;
  • U.S. Real Estate Funds group;
  • U.S. High Yield Funds group;
  • Europe Buyout Fund;
  • Europe Venture Fund;
  • Asia Buyout Fund;
  • Asia Venture Fund; and
  • Carlyle/Riverstone Global Energy and Power Funds.

Lobbying

The company spent $480,000 for lobbying in 2006. The lobbying was done through the two lobbying firms Federalist Group and Clark & Weinstock. [2]

Carlyle obviously started a love affair with "Sarkoland" :

  • right after the 2007 Presidential elections in France, the State purchased the Imprimerie Nationale building in Paris back from the fund. Carlyle paid 85 million euros back in 2003 plus about 120 millions in the rehabilitation of this monument. The net gain was over 171 million euros. [3]
  • Nicolas Sarkozy, the French president, honored Paul Desmarais, an eminent Canadian member of the board, with the prestigious Grand' Croix de la Legion d'Honneur on February the 18th, 2008. On March the 3rd, 2008, Pierre-Olivier Sarkozy, half brother of Nicolas, joins the Company [4]...

Founding Partners and Senior Advisors

Contact

1001 Pennsylvania Ave. NW, Ste. 220 South
Washington, DC 20004-2505
Phone: 202-347-2626
Fax: 202-347-1818
Web: http://www.carlyle.com

References

  1. ↑ Vikas Bijaj, "Economy Hammered by Toxic Blend of Ailments," New York Times, March 14, 2008.
  2. ↑ Carlyle Group lobbying expenses, Open Secrets.
  3. ↑ [1], Imprimerie Nationale - speculation.
  4. ↑ [2], The Carlyle Group Names Olivier Sarkozy Co-head of Global Financial Services Group.

Articles and reports

Retrieved from "https://wikispooks.com/w/index.php?title=Carlyle_Group&oldid=10700"