Examples of PE firms using lobbyist to unlock value?
I was curious if there are any notable examples of private equity companies buying firms in unregulated industries and then lobbying congress to increase the value of the assets. For example, purchasing steel-producing companies and then lobbying congress for tariffs. I would be interested to read up, thanks!
George Bush, Carlyle Group
--start a war to improve your IRR
I'm sure there are examples of PE companies anticipating this type of move and using it as a way to hedge or take a position (i.e. buying a US steel company in anticipation of loading up UK tariffs a while back) but PE firms really do not have enough weight to meaningfully push Congress on these types of things. There is a lot more at play in these types of decisions, especially in politically loaded areas like tariffs.
Carlyle I'd say is a good example of a firm that is highly involved in the defense industry and other regulated industries, with a prominent DC office, but they aren't out there aggressively pushing legislation based on their portcos. At least in the past, they've stated they do not lobby the federal government at all (excluding corporate issues, like the carried interest loophole that popped up recently)
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