Wednesday, August 28, 2013

Engler & Carlyle Exec Join Blackford Capital's Michigan PEU

CBS Detroit reported:

Former Michigan Gov. John Engler and three business leaders have formed an advisory board with the Grand Rapids-based private equity firm Blackford Capital to target Michigan-based investments.
Engler's Business Roundtable played nice with the Obama administration on health reform.  Obama White House officials deferred to the Business Roundtable in ways surprising to those who believed Barak Obama's campaign rhetoric in 2008.  BR and the White House are teaming up on immigration reform and lowering corporate taxes, possibly to levels enjoyed by private equity underwriters (PEU's).

2013 finds Detroit defaulting on its municipal debt.  PEU's like economic turmoil.  It provides opportunities to buy companies on the cheap.  The Carlyle Group took advantage of Uncle Sam's wallet under Bush/Obama.  Carlyle milked direct taxpayer subsidies and preferred taxation to grow from $3.3 billion in assets to over $180 billion.

Blackford Capital tagged Mary Petrovich, Carlyle Group Senior Advisor, for their advisory board.  Carlyle is seeding a number of targeted PEU firms from homeland security to Michigan-based investments.   PEU's are ubiquitous and beloved by politicians Red and Blue.