Investing in War - The Carlyle Group profits from government and conflict
Sunday, November 21, 2004 at 03:59AM
TheSpook
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]