|(Left) Marvin with brother George W. Bush
Calcutta, May 6: There’s a Bush among the hedge financiers behind Purnendu Chatterjee’s Basell deal.
Marvin P. Bush ' the youngest brother of President George W. Bush ' is reported to be one of the financiers who helped Chatterjee’s TCG pull off the audacious $5.7-billion deal for the Dutch petrochemicals giant.
Marvin (49) is an investment banker with strong credentials, having cut his teeth in large firms where he worked for over 12 years.
The younger Bush sibling has preferred to live in the shadows of his illustrious father George Bush Sr and brothers George ‘Dubya’ and John ‘Jeb’, who is the governor of Florida.
Away from public gaze, Marvin has built a formidable reputation as an investment banker and is the founder of Winston Partners, a private investment firm based in Virginia. He is also the managing general partner of Winston Growth Fund, Winston International Growth Fund and Winston Small Cap Growth Fund.
Winston Partners has been closely associated with TCG (The Chatterjee Group) headed by Chatterjee.
'Winston Partners is a private equity fund whose money we manage. TCG manages a host of other funds as well,' John Flanagan, chief financial officer of TCG told The Telegraph over the phone from New York.
Flanagan, however, refused to confirm that cash from Marvin’s investment firm had been used to finance the Basell deal.
Sources in the financial market, however, said Marvin was behind the purchase. They say the upcycle in the petrochemicals business, which is expected to continue till 2008, has attracted Marvin to invest in Basell.
Purnendu and Marvin have one thing in common ' both have closely worked in the financial markets as investment advisers. While the former worked with McKinsey & Co before joining George Soros, the latter worked with Lehman Brothers before floating his own private equity fund.
The Soros connection also binds Marvin and Purnendu. TCG is an affiliate of the New York-based Soros Fund Management. Soros was reportedly a major investor in Harken Energy, which bought into Marvin’s ailing oil venture despite Soros being a strong critic of President Bush.
Chatterjee never speaks about the private equity funds he manages.
Foreign media report that Merrill Lynch has arranged 3-3.3 billion euros of high-yield debt for the acquisition, leaving the partners to pump in about 1-1.3 billion euros as equity. The debt will be serviced by cash flows from Basell.
Chatterjee has also used his clout as an investment banker to funnel cash from American private equity investors into Haldia Petrochemicals in which he holds 43 per cent of the Rs 1,410-crore equity.
Winstar, which comprises a clutch of US-based investors, has already pumped Rs 150 crore into Haldia. 'Purnendu has been instrumental in bringing Winstar into Haldia Petrochem,' said sources.
It’s not clear if Winstar and Marvin-owned Winston Partners are linked.