Investing in War - The Carlyle Group profits from government and conflict

The Carlyle Group, a Washington, D.C.-based private equity firm that employs numerous former high-ranking government officials with ties to both political parties, was the ninth largest Pentagon contractor between 1998 and 2003, an ongoing Center for Public Integrity investigation into Department of Defense contracts found. A dozen companies in which Carlyle had a controlling interest netted more than $9.3 billion in contracts. Overall, six private investment firms, including Carlyle, received nearly $14 billion in Pentagon deals between 1998 and 2003. (See related report, "The Sincerest Form of Flattery.") From its founding in 1987, the Carlyle Group has pioneered investing in the defense and national security markets, and through its takeover of companies with billions of dollars in defense contracts became one of the U.S. military's top vendors, ranking among better known defense firms like Lockheed Martin, Boeing Co., Raytheon Co., Northrop Grumman and General Dynamics. Unlike those firms, however, the Carlyle Group itself is not a manufacturer. It offers no services directly to the Pentagon, and has no defense contracts. Rather, it manages investments--some $18.4 billion from 600 individuals and entities in 55 countries, according to its Web site. The firm's business is making money for these investors, the vast majority of whose identities are not disclosed to the Securities and Exchange Commission or other government bodies. [more]

• Pictured above: Former President George H. Bush, Carlyle Senior Advisor and Managing Director [more] and [more]
  
• US: Carlyle Stands to Profit from War in Iraq [more]
  
• Meet the Carlyle Group [more] and [more]