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Carlyle's success illustrates the value of good connections and powerful names when making deals these days. "We certainly don't look at ourselves as a refuge for former government employees," says Carlucci, who joined Carlyle in 1989 and sits on the board of a staggering 32 companies and nonprofit organizations. "But I'd be a fool to deny that having a number of high- profile officeholders does provide Carlyle with certain advantages." Explains Samuel Hayes, a Harvard Business School professor: "The Carlyle Group has gone after former government officials whom top businessmen love to be seen with. Finding potential companies to acquire can be very tough, unless you've got some big names on your staff to help you get through the door."
Prominent former custodians of public trust can also help defuse image problems that threaten to snarl deals. For example, Carlyle became the adviser to Saudi Prince al-Waleed bin Talal in his $590 million investment in Citicorp in 1991. The firm subsequently teamed with France's state-owned Thomson-CSF to outbid U.S. defense giants for the missile and aircraft divisions of LTV last year. Such global connections can be controversial. "The one significant problem for Carlyle is that they've been on the foreign side of controversial transactions," says a Washington lobbyist and rival dealmaker. But Carlyle has the political savvy to play different sides. When the Bush Administration overturned the French deal in order to keep LTV out of the hands of foreign interests, Carlyle teamed with Northrop to acquire LTV's aircraft operations.
For now, Carlyle plans to advance full throttle on both the domestic and foreign fronts. Baker's greatest value could lie in his international connections: while he cannot legally exploit his contacts in official Washington for at least a year, he faces no such restrictions abroad.