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Interesting news about that wonderful venture capital company that screwed up your local phone service so well...now they want to take over the management of airports and other public facilities too. And with capital infusions from the oil-rich Arabs.
Miulang
The Washington buyout firm has raised $1.15 billion for an infrastructure fund that it will use to partner with federal, state and local governments in running vital public projects in the United States, including water and sewer systems, bridges, tunnels, highways and airports.
From the long lines at Dulles International Airport to Capital Beltway traffic, Carlyle and other investment firms see themselves as part of the solution for governments facing declining tax revenues and a troubled municipal bond market that has left them unable to complete or repair billions of dollars in public works projects.
Robert Dove, who is co-managing Carlyle Infrastructure Partners, says his team can run most airports, highways and water systems better than the public authorities and governments now doing the job, and make a profit for investors to boot.
But transportation analysts say they expect opposition to the idea of government handing over key roads, ports and utilities to profit-driven private companies that do not have to disclose much about their businesses. The issue is also raising questions over who would be responsible for the security and safety of such projects.
...Carlyle's new fund allows big foreign investors to purchase America's infrastructure indirectly. Last summer Carlyle sold a 7.5 percent stake to the oil-rich emirate of Abu Dhabi for $1.35 billion. But Abu Dhabi has no say in Carlyle's day-to-day operations or investment decisions, Carlyle officials say.
Carlyle is already under attack from the Service Employees International Union, or SEIU, over its takeover of the Manor Care nursing-home chain, which SEIU has called a relentless pursuit of profit. James Bellessa, a utilities analyst with D.A. Davidson & Co. in Seattle, said Carlyle can expect similar opposition from unions and politicians if it starts buying the nation's infrastructure.
From the long lines at Dulles International Airport to Capital Beltway traffic, Carlyle and other investment firms see themselves as part of the solution for governments facing declining tax revenues and a troubled municipal bond market that has left them unable to complete or repair billions of dollars in public works projects.
Robert Dove, who is co-managing Carlyle Infrastructure Partners, says his team can run most airports, highways and water systems better than the public authorities and governments now doing the job, and make a profit for investors to boot.
But transportation analysts say they expect opposition to the idea of government handing over key roads, ports and utilities to profit-driven private companies that do not have to disclose much about their businesses. The issue is also raising questions over who would be responsible for the security and safety of such projects.
...Carlyle's new fund allows big foreign investors to purchase America's infrastructure indirectly. Last summer Carlyle sold a 7.5 percent stake to the oil-rich emirate of Abu Dhabi for $1.35 billion. But Abu Dhabi has no say in Carlyle's day-to-day operations or investment decisions, Carlyle officials say.
Carlyle is already under attack from the Service Employees International Union, or SEIU, over its takeover of the Manor Care nursing-home chain, which SEIU has called a relentless pursuit of profit. James Bellessa, a utilities analyst with D.A. Davidson & Co. in Seattle, said Carlyle can expect similar opposition from unions and politicians if it starts buying the nation's infrastructure.
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