...It is Monday afternoon, (click here) and Bob Grady – the national Republican power-broker behind
Chris Christie’s prospective presidential campaign – is angrily
lecturing me on the murky world of investments. As one of Christie’s
closest advisers and as the governor’s hand-picked chairman of the New
Jersey Investment Council, Grady is specifically lecturing me about a decision by the council to hand $300 million of state pension money to private equity firm the Carlyle Group.
As I explained to him, I was calling about the deal because a Pando investigation has found that Grady also happens to be a former longtime executive at Carlyle whose financial disclosure forms (embedded below) show he still receives income from Carlyle investments, still owns a stake in Carlyle Group entities and now works at another fund that has investments with – you guessed it – Carlyle....
Carlyle likes to own government, even if it means corruption of government officials.
...In 2011, the global investment firm The Carlyle Group (click here) acquired Mountain Water Co. and its parent company, Park Water in California. Missoula remains the only major city in the state of Montana that does not own its water utility.
As part of its complaint, the city argues that Mountain Water ratepayers under private ownership are lining the pocketbooks of faraway investors. In the 2013 fiscal year, the Carlyle Group’s three founders earned $750 million, or roughly more than $133,000 each per hour, and they had use of a private airplane valued at $1.1 million.
“As a result of its focus on creating value for its investors rather than creating value for its customers and ratepayers, Carlyle Infrastructure is incentivized to operate the Water System in a manner that will achieve the maximum short-term economic return rather than to operate it for the long-term stability and security of the people of Missoula,” reads the eminent domain complaint.
Win or lose, the city will pick up legal fees, estimated to run anywhere from $800,000 to more than $1 million for Carlyle alone. Carlyle earlier warned the city against taking action in court, and spokesman Christopher Ullman said Wednesday the firm intends to maintain ownership of Mountain Water....
I knew there was something else about Carlyle and New Jersey. Just had to think about it for a minute.
As I explained to him, I was calling about the deal because a Pando investigation has found that Grady also happens to be a former longtime executive at Carlyle whose financial disclosure forms (embedded below) show he still receives income from Carlyle investments, still owns a stake in Carlyle Group entities and now works at another fund that has investments with – you guessed it – Carlyle....
Carlyle likes to own government, even if it means corruption of government officials.
...In 2011, the global investment firm The Carlyle Group (click here) acquired Mountain Water Co. and its parent company, Park Water in California. Missoula remains the only major city in the state of Montana that does not own its water utility.
As part of its complaint, the city argues that Mountain Water ratepayers under private ownership are lining the pocketbooks of faraway investors. In the 2013 fiscal year, the Carlyle Group’s three founders earned $750 million, or roughly more than $133,000 each per hour, and they had use of a private airplane valued at $1.1 million.
“As a result of its focus on creating value for its investors rather than creating value for its customers and ratepayers, Carlyle Infrastructure is incentivized to operate the Water System in a manner that will achieve the maximum short-term economic return rather than to operate it for the long-term stability and security of the people of Missoula,” reads the eminent domain complaint.
Win or lose, the city will pick up legal fees, estimated to run anywhere from $800,000 to more than $1 million for Carlyle alone. Carlyle earlier warned the city against taking action in court, and spokesman Christopher Ullman said Wednesday the firm intends to maintain ownership of Mountain Water....
I knew there was something else about Carlyle and New Jersey. Just had to think about it for a minute.
NEW BRUNSWICK, N.J.
March 31, 2014
PRNewswire
Johnson & Johnson (click here)
JNJ
+0.04%
today announced that it has accepted the binding offer from The Carlyle
Group, which was received and announced on January 16, 2014, to acquire
its Ortho-Clinical Diagnostics business for approximately $4 Billion,
subject to customary adjustments. This acceptance was made after
consultation with the relevant works councils and trade unions. The
transaction is expected to close toward the middle of the year, upon
satisfaction of customary closing conditions.
Johnson & Johnson will discuss any updates during its scheduled quarterly earnings call on April 15, 2014....
Interestingly, Carlyle has been a large investor in the Middle East. Perhaps it's interest in the USA has to do with 'uncertainty' of political stability. What happens to Ortho when Carlyle decides it no longer wants the security of an American company? Does anyone realize how long Ortho has been an employer in Somerset County, New Jersey?
Mar 24, 2014
The private-equity company is scrambling (click here) to close the sale of its stake in a health-care provider in Turkey, proposing discounts to keep the buyer on board.
Interestingly, Carlyle has been a large investor in the Middle East. Perhaps it's interest in the USA has to do with 'uncertainty' of political stability. What happens to Ortho when Carlyle decides it no longer wants the security of an American company? Does anyone realize how long Ortho has been an employer in Somerset County, New Jersey?
Mar 24, 2014
The private-equity company is scrambling (click here) to close the sale of its stake in a health-care provider in Turkey, proposing discounts to keep the buyer on board.
ISTANBUL—Carlyle
Group LP, the U.S. private-equity powerhouse, is scrambling to close
the sale of its stake in a health-care provider in Turkey, proposing
discounts to keep the buyer on board, according to people familiar with
the talks. The Washington-based firm is offering a discount of 3% to 4%
on the previously agreed price to close [...]
Guess where Ortho is going? Good-bye jobs. What are the chances a Chinese manufacturing company of medical commodities would be widely accepted in the USA, especially with the quality problems the USA has experienced?
Zero, right? Americans much rather American made quality in food and medical products. The USA has FDA standards for these products and they are required to be manufactured well. Why not buy out the competition and marshal in huge profits when the USA has no other alternative besides Chinese commodities?
March 24, 2014 9:52 a.m. ET
By Cynthia Koons
Carlyle Group CG +1.39% co-founder David Rubenstein (click here) expects China to be the biggest destination for dollars from its newest Asia fund, with a focus on deals in the health-care, consumer and food industries.
“The single most attractive market to invest in outside of the U.S. is China,” he said in an interview with The Wall Street Journal. “The things we’re most interested in China are not export businesses but rather consumer-oriented industries like health-care services, financial services and food.”...
This move by Carlyle is actually a huge opportunity for new manufacturing in the USA. J&J once owned a small manufacturing company called "Jelco." It was located in Raritan, New Jersey. I think it now is owned by Smith Medical of the UK. But, that isn't the point.
There is a large brain trust at J&J Ortho. I am sure if they had their choice they would not be moving anywhere. Besides, their salaries are not the trade mark of Chinese manufacturing. There is no reason why local investors could not unearth a small manufacturing plant and begin to manufacture products that are produced by Ortho and/or Jelco, but, with a high quality guarantee Americans demand from intimate products that insure their well being and health. Now, is the time.
I might add, the employees within Ortho's plant are great employees and are an additional asset that I know won't be leaving the area. It just seems to me this is a no brainer when Carlyle begins it's garage sale at Ortho. It's an opportunity to specialize a manufacturing plant on one product or two with high retail return on investment. When an initial investment takes on profit structures investors can enjoy, they can then expand their product line and return quality to the USA.
See, the Ortho product line is paid for by health care insurance, Medicare and Medicaid. Why send those monies to China? It is a guaranteed income from reliable sources.
China is welcome to build it's internal markets and grow a better and larger Middle Class. But, the USA does not need the "Made in China" label on these products.
I have to wonder.
When Carlyle begins it's garage sale at Ortho, will J&J continue to hold the pensions on Ortho retirees? They became retirees while employees of J&J so it might continue with the company. But, not likely.
Guess where Ortho is going? Good-bye jobs. What are the chances a Chinese manufacturing company of medical commodities would be widely accepted in the USA, especially with the quality problems the USA has experienced?
Zero, right? Americans much rather American made quality in food and medical products. The USA has FDA standards for these products and they are required to be manufactured well. Why not buy out the competition and marshal in huge profits when the USA has no other alternative besides Chinese commodities?
March 24, 2014 9:52 a.m. ET
By Cynthia Koons
Carlyle Group CG +1.39% co-founder David Rubenstein (click here) expects China to be the biggest destination for dollars from its newest Asia fund, with a focus on deals in the health-care, consumer and food industries.
“The single most attractive market to invest in outside of the U.S. is China,” he said in an interview with The Wall Street Journal. “The things we’re most interested in China are not export businesses but rather consumer-oriented industries like health-care services, financial services and food.”...
This move by Carlyle is actually a huge opportunity for new manufacturing in the USA. J&J once owned a small manufacturing company called "Jelco." It was located in Raritan, New Jersey. I think it now is owned by Smith Medical of the UK. But, that isn't the point.
There is a large brain trust at J&J Ortho. I am sure if they had their choice they would not be moving anywhere. Besides, their salaries are not the trade mark of Chinese manufacturing. There is no reason why local investors could not unearth a small manufacturing plant and begin to manufacture products that are produced by Ortho and/or Jelco, but, with a high quality guarantee Americans demand from intimate products that insure their well being and health. Now, is the time.
I might add, the employees within Ortho's plant are great employees and are an additional asset that I know won't be leaving the area. It just seems to me this is a no brainer when Carlyle begins it's garage sale at Ortho. It's an opportunity to specialize a manufacturing plant on one product or two with high retail return on investment. When an initial investment takes on profit structures investors can enjoy, they can then expand their product line and return quality to the USA.
See, the Ortho product line is paid for by health care insurance, Medicare and Medicaid. Why send those monies to China? It is a guaranteed income from reliable sources.
China is welcome to build it's internal markets and grow a better and larger Middle Class. But, the USA does not need the "Made in China" label on these products.
I have to wonder.
When Carlyle begins it's garage sale at Ortho, will J&J continue to hold the pensions on Ortho retirees? They became retirees while employees of J&J so it might continue with the company. But, not likely.
