Know ‘the right people,’ get investment contract

The New York Times continues its stellar, contextual reporting on the investment scandal spreading in that state and New Mexico today with an in-depth look at a go-between who helped The Carlyle Group get big contracts.

The article is relevant in New Mexico because of this recount of David M. Leuschen’s involvement in the Land of Enchantment:

“‘We may be slow, we may be old, we may be plodders,’ Mr. Leuschen told New Mexico officials when making a pitch (on behalf of Carlyle) for their business in 2005, ‘but we think we know the right people, and this is very much a relationship business.’

He walked away with a $40 million investment from the New Mexico State Investment Council on that day, according to the minutes of the meeting.”

The Times article comes on the heels of Thursday’s news that Carlyle has agreed to pay $20 million and reform the way it does business to avoid prosecution in the New York investment scandal that has spread to a number of other states, the most prominent being New Mexico.

“We think we know the right people?” And that helped Carlyle win a lucrative investment deal in New Mexico?

Interesting…