Dan D’Aniello, a co-founder of The Carlyle Group, is scheduled to begin speaking in about 15 minutes. Let’s hope for some talk about Carlyle going public, the firm’s China problems and the Private Equity Council that D’Aniello and company helped spearhead…
Ummm… so much for liveblogging. Seems my wireless access died off at just about the same time that D’Aniello’s speech began. So, instead, let me offer a very brief recap.
The main gist was “Myths of Private Equity” — an umbrella topic that let D’Aneillo knock down most every anti-LBO argument ever offered (and to briefly insult Michael Moore’s Fahrenheit 911). For example, he denied the notion that PE primarily benefits the wealthy, by citing all of the public pensioners invested in the asset class via CalPERS, Oregon, etc. He also insisted that few LBO firms buy/strip/flip companies nowadays, and interestingly used Hertz as his example (earnings growth since LBO, less debt-to-EBITDA, PE firms still own over 70%, etc.).
The topic of Carlyle going public came up during Q&A, but he declined to specificaly answer if/when the firm would file. Instead, he simply said that Carlyle was evaluating the possibility: “Even if we didn’t want to study it, the investment banks would want us to study it,” he quipped. He also sounded a note of caution, about how the public markets could undervalue buyout firms, because of their inherent short-term volatility.