A tale of two Carlyles.

AuthorUllman, Chris
PositionBusiness & Finance - The Carlyle Group

SECRETIVE: POWERFUL: politically well-connected: ex-president's club--these are words critics and the media use to describe The Carlyle Group. Successful: conservative: building value: integrity--these are words we use to describe ourselves. There are two stories about Carlyle: the one about a respected global institution that has gained the confidence of the world's major public pension funds and another concerning a superficial, unsubstantiated image portrayed by the likes of moviemaker Michael Moore.

Why has Carlyle supplanted the Trilateral Commission as conspiracy theorists' object of affection? Why are websites dedicated to "outing" Carlyle, imploring the world to beware the influence-peddling war profiteers? Why are books written about us? Why are anti-war protests conducted outside our offices? Why did Moore set his sights on us in "Fahrenheit 9-11?"

Simply put, Carlyle is an easy target. Our newfound infamy can be traced to a fascinating confluence of events that culminated on 9-11. First, we have had a handful of former senior government officials affiliated with us, including former Pres. George H.W. Bush, whose son was, and still is, president. Second, we are experts in defense investing. Third, we already were considered mysterious because we rarely spoke to the media. Finally, a half brother of terrorist Osama bin Laden was in attendance at our annual Washington, D.C., investor conference on Sept. 11, 2001.

Individually, each factor is interesting--and easily explained. Taken together, however, they are irresistible to the media, public, anti-America block, anti-Bush crowd, and, of course, the ever-growing chorus of conspiracy theorists.

What particularly is curious about how this story, has played out over the past three-plus years is that no legitimate news organization ever has accused us of wrongdoing: they typically just reference the crazy websites and put in obligatory quotes of condemnation from self-appointed "good government" advocates. Even the conspiracy websites rely mostly on innuendo rather than evidence of wrongdoing.

In fact, Carlyle never has been accused of, charged with, or sanctioned by any government agency for any wrongdoing. Meanwhile, every major Wall Street firm has paid significant fines for securities law infractions.

Media conspiracy theories

I started at The Carlyle Group as vice president for corporate communications in November, 2001. By then, the media and conspiracy storm was well under way. I joked with my wile that I could add value on my first days on the job just by returning media calls and saying something other than "No comment." I was the first in-house public relations person hired by Carlyle to handle its global communications activities. By today's media-centric business standards, such a low profile for a large organization is unusual. Critics call it secrecy, but it actually is a relentless focus on making money for our investors.

Carlyle is a private company and under no obligation to open its ledgers to the public. Nonetheless, we have embarked upon a campaign of "glasnost." recalling former Soviet leader Mikhail Gorbachev's...

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