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ABSTRACT
Compelling trends in international affairs, such as the rise of private military companies (PMCs) and the increasing fragility of many nation-states, have caused some observers to question whether the state-centric, Westphalian world-order will exist in perpetuity. In this light, epochal change theory posits that world-orders have constantly changed and we are now witnessing a transition to a new one. In this paper, I discuss how small groups of private equity investors now control impressive war-fighting capabilities, and that this acquisition of PMCs by private equity firms is further evidence of epochal change theory.
Disclosure statement
No potential conflict of interest was reported by the author.
Notes
1. McFate, The Modern Mercenary, xv.
2. Bunker and Ligouri Bunker, “The modern state,” 329.
3. Ibid., 330.
4. Nichols, “How America Lost Faith,” 60–62.
5. Bunker & Ligouri Bunker, “The modern state,” 340.
6. McFate, The Modern Mercenary, 13–18.
7. Ibid., 15.
8. Ibid.,16.
9. Walter, “Economic Drivers,” 588–90.
10. See “The Barbarian Establishment,” The Economist.
11. Hoskinson et al., “The Evolution and Strategic Positioning,” 26.
12. Erwin, “Defense Firms Regaining Attention”.
13. Hoskinson et al., “The Evolution and Strategic Positioning,” 26.
14. Barber and Goold, “The Strategic Secret of Private Equity,” 54.
15. Ibid., 55.
16. See “The Barbarian Establishment.”
17. Department of Defense, “Contingency Contracting throughout U.S. History”.
18. The term ‘capital’ here refers to different kinds of assets that private equity investors now hold. According to Preqin, the majority of private capital is still in ‘equity,’ however, private equity firms have diversified into privately held debt, real estate, and even natural resources.
19. See note 16 above.
20. Preqin, “Global Private Equity,” 8.
21. Stanley, Outsourcing Security, 1.
22. Peters, Schwartz and Kapp, “Department of Defense Contractor and Troop Levels,” 1–2.
23. Ibid., 4–6.
24. Data compiled from Preqin and Peters et al.
25. Ibid.
26. Hsu, “Murder conviction in Blackwater case thrown out”.
27. Sorkin and Protess, “Blackwater founder in deal to sell company”.
28. Ibid.
29. See Forté Capital Advisors’ website at http://www.fortecapitaladvisors.com/.
30. See Manhattan Partners’ website at http://manhattan-partners.com/.
31. Kelly, “Trying to Overcome Blackwater”.
32. Scahill, “Obama’s Blackwater?”.
33. Bergner, “The Other Army”.
34. “Constellis Holdings, Inc. Acquires Constellis Group, Inc.”
35. Moody’s Investor Service, “Rating action.”
36. Critchlow, “British security firm Olive plans expansion.”
37. Wilkers, “Apollo Group, Constellis Executives to Buy Out Security Services Contractor.”
38. See Constellis press release, “Constellis announces closing of management-led buyout.”
39. Baum, “This Gun for Hire.”
40. “Computer Sciences Corporation to acquire DynCorp.”
41. Merle, “Computer Sciences sells DynCorp units.”
42. “Military Contractor DynCorp Raises $325 Million in I.P.O.”
43. “Sale of KBR Bolsters Profit at Halliburton.”
44. Clabaugh, “Cerberus completes DynCorp acquisition.”
45. DeCarlo, “The world’s 10 largest employers.”
46. Griffin, “Private Equity Firm Buys G4S Government Solutions.”
47. Austen, “Garda Security Gets $1.1 Billion Buyout Offer.”
48. Kosman, “Apax Stops Sale of $2.3B Armored Car Company.”
49. “Rhone Capital to Acquire a Minority Stake in GardaWorld.”
50. Mazzetti and Hager, “Secret Desert Force Set Up by Blackwater’s Founder.”
51. Ibid.
52. Ingersoll, “Blackwater Founder Erik Prince Is Making a Huge.”
53. Ibid.
54. See DVN Holdings Limited, “Annual Report: 2012,” 10.
55. An Internet search for ‘Frontier Services Limited’ yielded no details regarding its founding.
56. “DVN (Holdings) Limited Announces Appointment of Erik Prince as Chairman.”
57. “Total Solutions for the African Continent,” 4.
58. Scahill and Cole, “Echo Papa Exposed.”
59. Jeremy Scahill is author of Blackwater: The rise of the world’s most powerful mercenary army, which established Scahill as the foremost author following Erik Prince and Blackwater.
60. Scahill and Cole, “Echo Papa Exposed.”
61. Ibid.
62. Ibid.
63. Prince, “Contractors, Not Troops, Will Save Afghanistan.”
64. Demirjian, “Erik Prince tells House investigators”.
65. Bunker and Ligouri Bunker, “The modern state,” 337.
66. Wagstaff and Kaye, “Exclusive: Company behind bitcoin ‘creator’ sold to private investors.”
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Bryan T. Stinchfield
Bryan T. Stinchfield is an Associate Professor of Organizational Studies at Franklin & Marshall College in the United States. Prior to earning his Ph.D., he was an officer in the United States Army, worked for several for-profit corporations, earned and MBA, and worked in the intelligence community.