Despite building a massive firm, David Rubenstein lives with the constant fear that something will go wrong. This suggests that entrepreneurial anxiety doesn't disappear with success; it's an inherent part of the founder's mindset that persists indefinitely.
Instead of seeing Washington D.C. as a disadvantage for a finance firm, David Rubenstein pitched it as a unique strength. He claimed Carlyle had superior insight into government-regulated industries, creating a compelling narrative that attracted early investors.
David Rubenstein learned a harsh lesson: your network is often tied to your current position, not your personal value. When the Carter administration lost the election, powerful people who had promised him jobs stopped returning his calls.
As an unknown firm, Carlyle recruited famous political figures like Frank Carlucci and Jim Baker. These 'big shots' provided instant credibility and access to global networks that the founders couldn't reach on their own, accelerating their fundraising efforts.
David Rubenstein felt compelled to start Carlyle at 37, influenced by his reading that most first-time founders start between 28 and 37. He believed that if he hadn't done it by then, he likely never would have.
David Rubenstein's initial role in the White House was to catalogue every campaign promise President Carter made. This unique knowledge made him the go-to expert on the President's commitments, earning him a seat in high-level meetings he otherwise wouldn't have attended.
An early Jeff Bezos offered a Carlyle-owned company 20% of Amazon for access to a book bibliography. The company chose a $100k/year cash deal instead, fearing the illiquidity of startup equity—a decision that cost them a stake now worth billions.
David Rubenstein argues that legendary founders don't start with world-changing ambitions. He notes that Jeff Bezos's early goal was just $100 million in revenue and Facebook was just a dating site for Harvard. The grand vision emerges after achieving initial traction.
Lacking a track record for a blind-pool fund, Carlyle's initial model was to source a specific investment, then approach investors for capital for that single transaction. This built trust and a performance history, enabling them to later raise a $100M fund.