For a writer about skin in the game, here’s someone who seems not to like Tim Geithner putting more of his skin in the game of private equity investing.
The Obama era is one of crony capitalism: Geithner blocked the punishment of JP Morgan, now paid for it. No! https://t.co/W8B7Q9jHcv
— NassimNicholasTaleb (@nntaleb) February 8, 2016
That’s after this Bloomberg story about the former US Treasury Secretary, now president of Warburg Pincus:
Geithner, 54, secured a credit line with JPMorgan, one of the largest banks he oversaw during the financial crisis, to finance personal investments in funds started by his current employer, Warburg Pincus, according to a filing with the New York Department of State. He is borrowing money to invest in a $12 billion private equity fund that the firm raised in November, its first main fund since he joined almost two years ago, a person familiar with the situation said.
Here’s the filing incidentally.
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It’s good of Bloomberg to highlight this feature of private equity fundraising by illustrating it with a well-known name in finance.
It highlights a point potentially lost on critics here.
This happens all over the private equity industry. And presumably, we want it to.
There was a period before the financial crisis when buyout funds got bigger and bigger.