Where Have All the Political Figures Gone? Private Equity.

Is private equity the next career step for politicians and govt' officials?
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When politically active individuals leave the politics game, where do they go? Apparently, they join private equity firms. At least, that’s what Tim Geithner, David Petraeus, and Kenneth Mehlman have done. Why? Part of the reason is that a career in the government doesn’t exactly make for a wealthy bank account. Politicians also often have a good grasp of foreign relations and trends, a valuable insight when it comes to private equity.

Former U.S. Secretary of the Treasury Timothy Geithner served under President Obama from 2009 until 2013. He left the treasury earlier this year to write a book on the financial crisis from his perspective and increase his personal income. The book is due to be published in 2014, and recently Geithner announced that he’d be joining Warburg Pincus, a private equity firm headquartered in New York.

General David Petraeus joined KKR earlier this year as the head of the KKR Global Institute. Petraeus, a four-star general and the former head of the Central Intelligence Unit (CIA) now heads up the new KKR unit, which focuses on public policy, economic research, and emerging market due diligence.

Kenneth Mehlman, former RNC Chairman, campaign manager for President Bush, and gay-rights advocate, also joined KKR in 2008 as its Global Head of Public Affairs. His position makes good use of his political career, as he is responsible for ensuring that the public does not harbor misconceptions about the private equity firm.

Having a strategic business model and understanding emerging markets trends is essential in a private equity firm, so perhaps it’s not so surprising to see former politicians and government representatives joining up with firms like KKR and Warburg Pincus.  

Which government official do you think will partner up with private equity next?