Saturday, January 22, 2011

Evan Bayh jons private equity firm

The New York Times reported yesterday that former Senator Evan Bayh has joined a private equity firm.
Evan Bayh, the former senator from Indiana, has joined Apollo Global Management, the New York private equity firm.[...]

Now, he has joined Apollo as a senior adviser with responsibility for public policy, according to a short statement from the firm. An Apollo spokesman declined to comment beyond its news release.

His move to Apollo follows a steady stream of high-ranking political officials who have joined private equity firms over the last several years.[...]

The politicos give the private-equity firms a presence in Washington at a time when financial-services firms are increasingly coming under regulatory scrutiny. Private-equity firms also own an array of businesses, including energy and health care companies, whose operations are greatly affected by government policy. In recent years, the private-equity industry has sharply increased its lobbying expenditures.

For a lifelong public servant like Mr. Bayh, a private-equity shop holds great appeal. U.S. senators earn a salary of $174,000 per year. Private-equity deal makers are among the most highly compensated executives on Wall Street.[...]

The firm, which currently trades on a private exchange as a result of a complex transaction several years ago, is expected to begin trading on the New York Stock Exchange in the coming months.

Apollo, run by billionaire dealmaker Leon Black, owns a portfolio of businesses, including casino giant Harrah’s Entertainment and Claire’s Stores, the preteen accessories retailer.

The firm, which has $57.8 billion in assets under management, has been aggressively beefing up its management ranks. Late last year it hired Marc Spilker, a former Goldman Sachs executive, as its president. In 2009 it brought on Henry Silverman, the well-known New York financier, as chief operating officer.

Apollo’s hiring of Mr. Bayh fills a hole at the firm, which has lagged its competitors in establishing a base in Washington.
Best of luck with the new job, Senator!

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