Wall Street gets early warning from Veritas LBO

November 17, 2015

Banks are on the hook for $5.6 bln of debt after pulling the refinancing for Carlyle’s buyout of the data-storage unit. It may be a blip, but raises fears of a high-yield market stall. It’s also a reminder of the risk lenders take helping pile leverage on low-rated companies.

Private equity discord is best collusion defense

August 7, 2014

Blackstone, KKR and TPG are paying $325 mln to resolve allegations that they conspired to limit buyout prices. Three other firms previously settled for less. Carlyle is holding out for now. Legally, there’s safety in numbers. Yet they can’t even agree on how to resolve the case.

Rubenstein won’t easily snatch Schwarzman’s crown

September 6, 2011

It won't be easy for David Rubenstein to snatch Steve Schwarzman's private equity crown. Rubenstein's firm, Carlyle Group, manages about $150 billion of assets, roughly the same as Blackstone. But Carlyle reaps considerably less of the steady fee income that comforts investors.

Carlyle’s big payday does private equity no favors

January 12, 2012

David Rubenstein and two partners pocketed $400 mln of profits last year. The 99 pct - pensioners investing in Carlyle funds - did well alongside them. But the lower tax rate paid by the buyout barons cost Uncle Sam some $80 mln. The timing of Carlyle’s disclosure is impeccable.

Private equity may owe Obama a debt of gratitude

May 30, 2012

Mitt Romney has weakly rebutted the president’s attacks on his Bain Capital tenure. But others who see the good side of buyouts are gradually speaking up. Election-year mud-slinging could end up boosting the industry, especially if LBO firms themselves seize the moment.

Dunkin’s financial story still has holes

November 16, 2010

The buyout barons behind Dunkin' Donuts are taking out some dough. Equity holders may get a short-term buzz, but debt investors should beware.

Dimon deputy epitomizes succession of all sorts

March 25, 2014

Mike Cavanagh gave up a shot at following his mentor atop JPMorgan for one helping run Carlyle. Being CEO of a bank holds less appeal thanks to shrinking returns and growing regulation. The move shakes up leadership plans for two firms and underscores a bigger shift in finance.