The departure of former Sen. Thomas Daschle (D-S.D.) from the board of Apollo Management is something of an anomaly, as private equity firms have been the choice destination of former politicians. In the past decade, at least a dozen have made themselves at home at some of the top firms, including former Secretary of State Colin Powell at Kleiner Perkins Caufield & Byers and former Secretary of Treasury Secretary Paul O’Neill at The Blackstone Group. The Carlyle Group boasts of a roster including former President George H. Bush and former Secretary of State James Baker, among others. So, what’s the draw? According to LBO Wire, some, like O’Neill, bring business background with them that precedes their time in public office, but many others carry something just as valuable: a treasure chest of political connections, and even more important, name recognition. “They have real impact with investors and can certainly open a lot of doors,” Jack Marco of Chicago’s Marco Consulting Group told LBO Wire. Others suggest the former politicos have valuable cachet as “de facto lobbyists,” reports LBO Wire, but p.e. firms deny using their big-name staffers in that capacity. On the other hand, former potato-misspelling V.P. Dan Quayle, who now sits as chairman of Cerberus Capital Management, doesn’t hide the fact on his official Web site that he holds court on a regular basis with “American politicians and regulators with respect to issues affecting Cerberus’ investments.”
