This morning I appeared on CNBC's Squawk Box program, to discuss my recent column about how President Obama may be doing private equity an unintentional favor by proposing to reduce the deduction that companies can claim for interest payments. Basically that it's a "short-term pain for long-term gain" sort of situation, by discouraging the use of dividend recaps.
Here's the video:
Carlyle's owners extracted some value from their firm. So what?
As regular readers are aware, I loathe dividend recaps. They usually are greedy, parasitic transactions that give the rest of private equity a bad reputation.
So it wasn't surprising to see the following tweet from @The_Buyside: I have a hunch @danprimack will slam Carlyle in today's Term Sheet for news of the pre-IPO dividend recap. He was referring to a Bloomberg story about how Carlyle borrowed $500 MOREDan Primack - Mar 14, 2012 11:48 AM ET
|GM raising Corvette prices|
|2 million students missing out on college aid|
|Everything must go: There's a flood of store closings|
|Boeing reports wing cracks on Dreamliners|
|China to fight pollution with drones|