-Caveat Lector-

from march 5, 2001: "The Crusader is a heavy-duty tank made
by a Carlyle portfolio company and other contractors."

more below

Frank C. Carlucci, a Reagan secretary of defense who as
much as anyone is responsible for Carlyle's success, said
he met in February with his old college classmate Donald H.
Rumsfeld, the secretary of defense, and Vice President Dick
Cheney, himself a defense secretary under former President
Bush, to talk about military matters — at a time when
Carlyle has several billion-dollar defense projects under
consideration.

~snip~

"Carlyle is as deeply wired into the current administration
as they can possibly be," said Charles Lewis, executive
director of the Center for Public Integrity, a nonprofit
public interest group based in Washington. "George Bush is
getting money from private interests that have business
before the government, while his son is president. And, in
a really peculiar way, George W. Bush could, some day,
benefit financially from his own administration's
decisions, through his father's investments. The average
American doesn't know that and, to me, that's a
jaw-dropper."

~snip~

The California state pension fund invested $305 million
with Carlyle, and the Texas teachers pension fund — whose
board was appointed when George W. Bush was governor — gave
Carlyle $100 million to invest in November. Carlyle also
works as a financial adviser to the Saudi government.

~snip~

Carlyle has done well for its investors, returning an
average of 34 percent a year over the last decade, in line
with other private equity funds. It has done this by buying
what it knows best — companies that are regulated by the
government. Nearly two-thirds of its investments are in
defense and telecommunications companies, which are
affected by shifts in government spending and policy.

~snip~

And its access extends well beyond American shores. In

Europe, Carlyle has assembled an advisory board that
besides Mr. Major includes Karl Otto Pöhl, former president
of German's Bundesbank, and the past or present chairmen of
B.M.W., Hoffman-LaRoche, Nestlé, LVMH-Moët Hennessy, Louis
Vuitton and Aerospatiale, the French Airbus partner.

~snip~

Carlyle is hoping that financing is provided for the $13.7
billion Crusader program. The Crusader is a heavy-duty tank
made by a Carlyle portfolio company and other contractors.
And Carlyle just lodged a complaint with the government
after another of its portfolio companies lost a $4 billion
contract to build a lightweight combat vehicle.

the rest of the article is below
http://www.nytimes.com/2001/03/05/politics/05CARL.html?pagewanted=all



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