Inside the Secret World of the Carlyle Group: Bush & Bin Laden Family, 9/11, Controversy (2003)

Inside the Secret World of the Carlyle Group: Bush & Bin Laden Family, 9/11, Controversy (2003)

The Carlyle Group is an American multinational private equity, alternative asset management and financial services corporation. Read the book: https://amzn.to/3kq07EY

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It specializes in private equity, real assets, and private credit. In 2015, Carlyle was the world's largest private equity firm by capital raised over the previous five years, according to the PEI 300 index, though by 2020 it had slipped into second place.

Founded in 1987 in Washington, D.C., by William E. Conway Jr., Daniel A. D'Aniello, and David Rubenstein, the company today has more than 1,575 employees in 31 offices on six continents. On May 3, 2012, Carlyle completed a $700 million initial public offering and began trading on the NASDAQ stock exchange.

Carlyle's corporate private equity business has been one of the largest investors in leveraged buyout transactions over the decade 2004–2014 (or perhaps 2000–2010),[citation needed] Carlyle has invested in Accolade Wines, Booz Allen Hamilton, PA Consulting, Dex Media, Dunkin' Brands, Supreme, Freescale Semiconductor, Getty Images, HCR ManorCare, Hertz, Kinder Morgan, Nielsen, United Defense, 1E and other companies.

Carlyle has been profiled in two notable documentaries: Michael Moore's Fahrenheit 9/11 and William Karel's The World According to Bush.

In Fahrenheit 9/11, Moore makes nine allegations concerning the Carlyle Group.[85] Moore focused on Carlyle's connections with George H. W. Bush and his Secretary of State James Baker, both of whom had at times served as advisers to the firm. The movie quotes author Dan Briody, who claimed that the Carlyle Group "gained" from the September 11 attacks because it owned military contractor United Defense.[19] A Carlyle spokesman noted in 2003 that its 7% interest in defense industries was far less than several other private equity firms.

In The World According to Bush, William Karel interviewed Frank Carlucci to discuss the presence of Shafiq bin Laden, Osama bin Laden's estranged brother, at Carlyle's annual investor conference while the September 11 attacks were occurring.

Buyouts declined after the collapse of the dot-com bubble in 2000 and 2001. But after the two-stage buyout of Dex Media at the end of 2002 and 2003, large multibillion-dollar U.S. buyouts could once again obtain high-yield debt financing and larger transactions could be completed. Carlyle, together with Welsh, Carson, Anderson & Stowe, led a $7.5 billion buyout of QwestDex,[27] the third-largest corporate buyout since 1989.[28] QwestDex's purchase occurred in two stages: a $2.75 billion acquisition of assets known as Dex Media East in November 2002 and a $4.30 billion acquisition of assets known as Dex Media West in 2003.[29] R. H. Donnelley Corporation acquired Dex Media in 2006.[30] Shortly after Dex Media, other larger buyouts would be completed signaling a resurgence in private equity.

Lou Gerstner, former chairman and CEO of IBM and Nabisco, replaced Frank Carlucci as chairman of Carlyle in January 2003. Gerstner would serve in that position through October 2008. The hiring of Gerstner, was intended to reduce the perception of Carlyle as a politically dominated firm.[36] At the time, Carlyle, which had been founded 15 years earlier had accumulated $13.9 billion of assets under management and had generated annualized returns for investors of 36%.

Carlyle also announced the $1.6 billion acquisition of Hawaiian Telcom from Verizon in May 2004.[37] Carlyle's investment was immediately challenged when Hawaii regulators delayed the closing of the buyout. The company also suffered billing and customer-service issues as it had to recreate its back-office systems. Hawaiian Telcom ultimately filed for bankruptcy in December 2008, costing Carlyle the $425 million it had invested in the company.[38]

As the activity of the large private equity firms increased in the mid-2000s, Carlyle kept pace with such competitors as Kohlberg Kravis Roberts, Blackstone Group, and TPG Capital. In 2005, Carlyle, together with Clayton Dubilier & Rice and Merrill Lynch completed the $15.0 billion leveraged buyout of The Hertz Corporation, the largest car rental agency from Ford.

The following year, in August 2006, Carlyle and its Riverstone Holdings affiliate partnered with Goldman Sachs Capital Partners in the $27.5 billion (including assumed debt) acquisition of Kinder Morgan, one of the largest pipeline operators in the US. The buyout was backed by Richard Kinder, the company's co-founder and a former president of Enron.

https://en.wikipedia.org/wiki/The_Carlyle_Group

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