The newly retired Judy Public was one of hundreds of seniors who enjoyed a cheap and friendly atmosphere in Plaza Del Rey, Sunnyvale’s vast trailer park. California Then Carlisle Group acquired the property and the situation has started to change.
Pavlick rents have soared by over 7%. After that, further increases continued. She said an unexpected jump has forced her and her neighbors not to move many on a fixed rate and sometimes forced them to choose between food and medication.
The acquisition and subsequent sale of Pavlick’s RV park in 2015 is a core business for private equity firms like Carlyle. Carlyle may also acquire and restructure private companies to create value for investors while reducing jobs and services.
But the deal, one of hundreds of Carlyles to close in recent years, is now a former Republican candidate for governor of Virginia, a former Carlyle employee who uses his experience of “business building and job creation.” “Stressed. It could be the political responsibility of CEO Glenn Youngkin. .. “
“They don’t know that these are people’s houses. It’s not just the numbers in the table. “74-year-old Pavlick said,” You have no conscience. “
In addition to targeting RVs, Youngkin targets nursing homes, auto parts manufacturers, energy companies, and companies that make “less lethal” weapons used by governments that cracked down on democratic advocates. Helped make money for investors. In recent years, more than 1,000 jobs have been relocated abroad due to corporate restructuring. Hundreds more were laid off after Carlyle took a series of cost-cutting measures in nursing home chains across the country. Complaints about poor service and negligence continued.
While there have been no allegations of illegal or fraudulent activity, Yongkin’s political ambitions have re-examined deals with Washington-based investment firms. It generated an estimated net worth of over $ 300 million before stepping down as co-CEO last summer.
Probably not since former Republican presidential candidate Mitt Romney currently has candidates seeking senior positions with strong ties to the world of private equity. Romney also sold himself as a successful businessman and job creator, but the story of the mega deal that people benefit from on a daily basis undermined his ambitions in the White House.
Yongkin is currently facing another wealthy ex-businessman, a former Democratic governor. Terry McAuliffe in the general election in November, which emerged as the top national political competition in 2021.
Although McCorriff’s relationship with big funders and lobbyists is well established, Yongkin has only just begun to ask difficult questions about his business background. His team refused to look into any specific deals from Carlyle.
“When he was young, Glenn joined a small company and for the next 25 years jumped to the top of the company, turning a good business into great, and growing into a very successful company that produced tens of thousands of companies. “Under Glenn’s leadership, the Carlyle Group hired approximately 2,000 people and managed assets nearly four times the annual budget of Virginia,” said McCawley Porter, a Youngkin spokesman. It was.
Yongkin puts his business experience and political underdog status at the center of marketing to voters. But he often discusses his career in a wide variety of headlines without mentioning his high position or even the name of his previous company.
When he talks about his career, he relies on the phrase “build a business and create jobs”. There is usually no precise description of the type of transaction he is overseeing.
In a February interview with a former MP when asked on social media how he sees the role of private equity funds in the economy, Youngkin replied: And we do this by helping them expand, new products on the market Bringing the market, seeing a new future, and hiring new people. “
While Carlyle’s deals can bring significant benefits to the company’s investors, they can also result in layoffs, outsourced jobs, and complaints from people directly served by the acquired company.
In some cases, the details can be politically damaging to Yongkin, but the situation is complicated by Democratic critics who have tried to brand Yongkin too close to the former president. Donald Trump McCorriff himself invested in Carlyle before and after becoming governor of Virginia in 2014.
The former Democratic governor’s public disclosure doesn’t reveal the current relationship, but records show that McCorriff invested at least $ 690,000 in the Carlyle Fund between December 2007 and late 2016. In some cases, an unlimited investment.
McCorriff spokeswoman Christina Freundrich said McCorriff has not invested in Carlyle since 2014 and is a passive investor who is not involved in business creation. She said there are many large institutions among investors, including the California Civil Service Retirement Program.
“Glen Youngkin’s record is clear. Sending American jobs abroad, hurting the elderly and homeowners, all for their own benefit, “Freundrich said. The first. “
According to the Department of Labor, Carlyle has invested in several companies under Youngkin’s leadership and has moved at least 1,300 American jobs overseas.
These include Metaldyne LLC, a North Carolina auto parts company that posted 176 jobs to South Korea in 2008. Commemorative Brands, a Texan company that made class rings between 2005 and 2013 and sent over 260 jobs to Mexico. Ohio-based auto parts maker Veyance Technologies sent nearly 300 jobs to Mexico between 2009 and 2011.
After the reorganization, all three companies sold hundreds of millions of dollars more than they earned.
Veyance Technologies was one of the larger mutual funds that McAuliffe invested. That is, he would have benefited from the deal.
Carlyle’s agent refused to comment on the story. Management struggled at times to keep some of their decisions.
In 2005, the company acquired a minority stake in Combined Systems Inc., a “non-lethal” ammunition maker that makes tear gas and “super sock bean sacks,” followed by opposition from the governments of Tunisia, Egypt and China. Used to be tough when exercising. Democratic protesters.
At the time, Combined Systems officials said they had no control over the use of their products. However, the U.S. State Department has begun investigations into tear gas abuse after a photo of a CSI branded tear gas canister was posted on social media alleging that it was using excessive force, particularly against protesters in Egypt.
In every way, Carlyle is a leading global private equity giant with 29 offices on five continents and more than 1,800 employees. According to its annual report, the company raised more than $ 27 billion in new capital in 2020. Although Carlyle has been described as a “tough environment” due to the pandemic, Carlyle offered investors a distributable return of $ 762 million last year. This is the highest sum in the last five years.
Yongkin joined the company in 1995 and has grown steadily since then, and was responsible for the industrial sector investment team in 2005. He became Chief Operating Officer in March 2011 and was jointly appointed over a seven-year period. CEO.
Carlyle announced Yongkin’s resignation last summer, with speculation that he would be interested in running for public office. In the announcement, Yongkin said, “It’s been a once-in-a-lifetime professional journey and I am honored to be able to integrate Carlyle into today’s global institutions.”
Youngkin’s annual compensation package for 2019, the company’s final year, was $ 17 million, according to a report released at the time. That same year, Carlyle sold Sunnyvale’s Plaza Del Rey for $ 237 million after buying it for $ 152 million four years ago.
Acquiring a high-end mobile home park now known as a production house was part of Carlyle’s broader strategy, including large properties in Arizona and Florida. Such investments are a new trend among private equity funds, which have recently recognized the potential for investing in RV parks.
Critics, including Senator Elizabeth Warren (D-Mass), accuse companies of exploiting elderly residents with a stable source of income and limited relocation options with rising rents and fees. Have.
Six years after Carlyle entered public life, she is still battling rent and fee increases. This continued to rise after Carlyle sold the community to another foreign investment firm two years ago.
“This park used to be called a hearty park,” said Pavlick. “You have just turned everyone’s happy home.”
___
People reported from New York.
Republican candidate for private equity in Virginia Carlyle Richmond USA Egypt Elizabeth Warren. checked
Source link Virginia Republican Private Equity Candidate Resume Carlyle Richmond USA Egypt Examined Elizabeth Warren War
Recommended Event: Free Estate Planning and Living Trust Workshop Live Q&A Friday 3pm (Bill Wilson)
Featured Event: Sunset Social at Wild Days DC (Eaton Rooftop) (Ty Moore)
