April 24, 2006
Daschle joins Apollo Investment board
By Michael Flaherty
NEW YORK (Reuters) - Former Senator Thomas Daschle has
joined the board of directors of Apollo Investment Corp., the
company said on Monday, entering the growing ranks of
politicians turned private equity advisers.
representing South Dakota, having served four terms as a
Congressman. Daschle lost a reelection bid in 2004.
Daschle is currently a policy advisor for Alston & Bird, a
Washington D.C.-based law firm, specializing in public policy
Apollo Investment Corp. is a publicly traded fund
affiliated with New York private equity firm Apollo Management.
The company, technically known as a business development
company (BDC), went public in 2004.
Private equity funds buy companies or controlling stakes,
restructure the businesses and sell them later, keeping a piece
of the profit on the sale. Private equity fund investors are
typically large pension funds and endowments.
A BDC allows an individual investor access to the private
equity markets and gives the buyout firm access to a permanent
flow of money -- as opposed to fund raising every four or five
The private equity industry is enjoying one of its most
profitable periods to date, fueled by favoring financing
markets, record fund raising and lackluster equity markets.
The industry has attracted a long list of former high-
profile U.S. politicians, including two former presidents.
Former President George H.W. Bush is an adviser to the
Carlyle Group and his vice president Dan Quayle chairs a
division of Cerberus Capital Management. Bill Clinton, who
served two-terms as president after the elder Bush, is on the
board of private equity firm Yucaipa Companies.
Private equity is a mergers and acquisitions business and a
person's political connections domestically and abroad are
often relied upon in the deal-making world.
For the politicians, the private equity appeal often stems
from both the lucrative and exciting nature of the business.