The Carlyle Group

  • Overview

THE SCOOP

Staying atop

The Carlyle Group took Private Equity International's No. 3 spot on its annual list of the largest P.E. firms in 2009 with $47.73 billion of capital raised since 2004.  The firm is still 50 percent owned by three of its original founding partners, Dan D'Aniello, William Conway and Greg Rosenbaum.  Two other entities factor into the firm's ownership-CalPERS, or the California Public Employees Retirement System, has a 5.5 percent holding purchased in 2001, and Mubadala Development, an investment vehicle for Abu Dhabi, has owned 7.5 percent of the company since 2007.

The Carlyle Group has 64 funds across its four major investment disciplines: buyouts, venture and growth capital, real estate, and leveraged finance.  The firm's global reach would impress even the most well-seasoned travelers-Carlyle has more than 30 offices in North America, Europe, Asia, Australia, the Middle East and North Africa, and Latin America.  Carlyle operates across a wide diversity of industries including aerospace and defense, automotive and transportation, consumer and retail, energy and power, financial services, health care, industrial, infrastructure, real estate, technology and business services and telecommunications and media.  This massive private equity company's portfolio history includes investments in at least 600 different companies.  A few notable names include Dunkin' Brands, the owner of Dunkin' Donuts and Baskin-Robbins, Japanese wireless company Willcom, the oral hygiene company Water Pik, and the Hertz Corporation.

Washington insiders

This Washington D.C.-based private equity company has connections in high places.  With a high profile roster of former employees and affiliates that includes former President George H.W. Bush, former Secretary of State James Baker III, former British Prime Minister John Major and international financier George Soros, the Carlyle Group has earned a reputation for being a virtual who's who of Washington.  Wherever politics goes, controversy usually follows, and The Carlyle Group has suffered its fair share of bad press over the past few years.  Because of the firm's investment in the defense industry and the ties to George H.W. Bush, many conspiracists have accused George H. W. Bush of having a hidden agenda for the War on Terror-making the Carlyle Group rich.  The Carlyle Group has shrugged off this criticism as off-balance, especially since only 7 percent of its total portfolio is invested in defense.

Carlyle around the globe

The Carlyle Group's investments are broken up geographically as follows: 60 percent in North America, 26 percent Europe and 14 percent in Asia.  There is evidence, however, that the firm's future includes a larger presence in the Asia Pacific region.  In a July 2008 press release, Carlyle announced that it would be expanding its Asian Leveraged Finance Group, based out of Sydney, Hong Kong and Tokyo.  The leveraged finance group in Asia manages approximately $14 billion in 24 funds.  The firm also made an $87 million investment in Sinorgchem Group, a chemical company in China which produces rubber products, in July 2008.  The Carlyle Group invested for the first time in Turkey in 2008, acquiring a 50 percent stake in TVK Shipyard, a shipbuilding specializing in chemical tankers.  Details of the deal were undisclosed.

Taking the challenges

The Carlyle Group waded through the uncertainty of the economic crisis that took its toll on several of its portfolio businesses and endeavors in 2008.  One significant downturn was the closure of its affiliate Carlyle Capital Corporation, after it failed to meet agreements with lenders in March 2008.  Carlyle Blue Wave, the hedge fund venture of the company, was also liquidated and shut down in July 2008.  Several portfolio companies also filed bankruptcy protection such as Edscha, SemGroup and Hawaiian Telcom.  By the last quarter of 2008, the company trimmed its workforce to as much as 10 percent firmwide and closed its Menlo Park office.  Yet despite these losses, Carlyle still managed to hold onto, and even increase, its private equity fund to as much as $19.9 billion in new capital deploy.  While trying to avoid big deals that competitors are making, the company managed to increase deploying capital in choice buyout, growth capital, real estate and leveraged finance opportunities.



The Carlyle Group


1001 Pennsylvania Ave. NW
Suite 220 South
Washington, DC 20004-2505
Phone: (202) 729-5626
Fax: (202) 347-1818
www.carlyle.com

STATS


  • Employer Type: Private
  • Chairman: Louis V. Gerstner Jr.
  • 2009 Employees: 415,000

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