The Edward Snowden saga caused headache for his former company, Booz Allen Hamilton Corp. Aside from that, it had caused such issue for the company's 67% owner, Carlyle Group LP. It could turn into a bigger problem for some of Carlyle's private equity firm rivals.
In between 2007 and 2011, a whole host of other private equity companies piled into the defense and intelligence sector including Carlyle Group. This made various contractors and consultants snapped with most of them not having recouped their original investments. Some of these investors would incur bigger losses if they sold their assets today.
According to government officials, the US national security has been badly compromised after Snowden leaked details of the country's secret surveillance programs. The private equity industry has been put under increasing pressing after a series of apparent security issues caused by the Snowden saga.
Meanwhile, despite being the center of the scandal, Snowden's former employer, Booz Allen Hamilton Corp held up better than its rivals. Carlyle was also handsomely rewarded after its invested amount increased three times than its original investment of US$956.5 million in private equity in 2008.
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