Caryle group (wikipedia)


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Caryle group (wikipedia)

  1. 1. Carlyle Group - Wikipedia, the free encyclopedia Page 1 of 10Carlyle GroupFrom Wikipedia, the free encyclopediaThe Carlyle Group is an American-based globalasset management firm, specializing in private The Carlyle Group, L.P.equity, based in Washington, D.C. The CarlyleGroup operates in four business areas: corporateprivate equity, real assets, market strategies and fund-of-funds, through its AlpInvest subsidiary. In its Type Public2010 annual report, Carlyle reported assets in excessof $150 billion under management diversified over Traded as NASDAQ: CG84 distinct funds.[2] The firm employs more than 890 (, including 495 investment professionals, Industry Financial Servicesin 20 countries with offices in the Americas, Europe,Asia, and Australia, and its portfolio companies Founded 1987employ more than 415,000 people worldwide. The Headquarters Washington, D.C., United Statesfirm has over 1,300 investment partners in 71countries. Key people William E. Conway, Jr., Founder Daniel A. DAniello, FounderAccording to a 2011 ranking called the PEI 300 David M. Rubenstein, Founderbased on capital raised over the last five years,Carlyle was ranked as the third largest private equity Products Private equity, Managementfirm in the world, after TPG Capital and Goldman buyoutsSachs Principal Investment Area.[3] Carlyle had been Real estateranked first in the 2007 listing.[4] Leveraged financeIn 2010, the Financial Times announced that Carlyle and growth capitalGroup is the private equity firm of the year. Revenue US$ 4.109 billion (June 2011)[1] Net income US$ 2.489 billion (June 2011)[1] AUM US$153.7 bil (June 2011)[1][2] Contents Total assets US$ 17.690 billion (June 2011)[1] ■ 1 Investment focus Employees 1,100 [1] ■ 2 History ■ 2.1 Current portfolio and major Website acquisitions ( ■ 2.2 Carlyle Capital Corporation ■ 3 AlpInvest ■ 4 Carlyle in the Media ■ 4.1 Documentaries ■ 5 Controversial Legislation ■ 6 Notable current and former employees and advisors ■ 6.1 Business ■ 6.2 Political figures ■ 6.2.1 North America ■ 6.2.2 Europe ■ 6.2.3 Asia ■ 6.3 Media 5/23/2012
  2. 2. Carlyle Group - Wikipedia, the free encyclopedia Page 2 of 10 ■ 7 See also ■ 8 References ■ 9 Further reading ■ 10 External linksInvestment focusCarlyle invests primarily in the following industries: aerospace and defense, automotive, consumer andretail, energy and power, health care, real estate, technology and business services, telecommunicationsand media, and transportation. The Carlyle Groups investments are focused on East Asia, Europe andNorth America, with most investment money coming from the United States (65%), Europe (25%), Asia(6%), Latin America, and the Middle East.[citation needed] Defense investments represent about 50% of thegroups current portfolio;[citation needed] for example, Carlyle owns 33.8% of QinetiQ,[citation needed] theprivatized British defense contractor.HistoryCarlyle was founded in 1987 by five Washington executives: William E. Conway, Jr., Stephen L.Norris, David M. Rubenstein, Daniel A. DAniello and Greg Rosenbaum.[5] Rosenbaum left in 1987;[6]Norris left in 1995.[7][8] The three remaining founders are reported to collectively own around a 50%interest in the groups general partnership. The rest of Carlyle is owned by a group of individuals, mostof whom serve as managing directors, and by two institutional investors. In 2001, the California Public Employees Retirement System (CalPERS) acquired a 5.5% holding in Carlyles management company for $175 million. The investment was valued at approximately $1 billion by 2007 at the height of the 2000s buyout boom.[9] Lou Gerstner, former chairman and CEO of IBM and Nabisco, was appointed chairman of Carlyle in January 2003 and served in that position through October 2008. Gerstner remains with Carlyle as a senior advisor. Carlyle Group Historical In September 2007, Mubadala Development Company, an investment Logo vehicle for the government of Abu Dhabi of the United Arab Emirates, purchased a 7.5% stake for $1.35 billion.[9]In November 2008, The Carlyle Group was named Private Equity firm of the year in the U.S. at theFinancial Times-Mergermarket 2008 M&A Awards.[10]In 2000, Carlyle entered into a joint venture with Riverstone Holdings, an energy and power focusedprivate equity firm founded by former Goldman Sachs investment bankers. In March 2009, New YorkState and federal authorities began an investigation into payments made by Carlyle and Riverstone toplacement agents allegedly made in exchange for investments from the New York State CommonRetirement System, the states pension fund. It was alleged that these payments were in fact bribes orkickbacks, made to pension officials who have been under investigation by New York State AttorneyGeneral, Andrew Cuomo.[11] In May 2009, Carlyle agreed to pay $20 million in a settlement withCuomo and accepted changes to its fundraising practices.[12] 5/23/2012
  3. 3. Carlyle Group - Wikipedia, the free encyclopedia Page 3 of 10Current portfolio and major acquisitionsCarlyle has investments spread out over several different industries, with about 22% of their investmentsin energy and power, 19% in real estate, 15% in technology and business services, 8% in consumer andretail, 8% in industrial, 6% in telecommunications and media, 6% in transportation, 6% in healthcare,5% in aerospace, and 4% devoted to other industries, according to their 2008 annual report.[citation needed]Noted current and former portfolio companies include Dex Media, the former directories business ofQwest Communications; Willcom, a Japanese wireless company; Casema, a Dutch cable company; andInsight Communications, the ninth largest cable company in the U.S. The Carlyle Group was once amajor investor in US Investigations Services, which is the privatized arm of the United States Office ofPersonnel Managements Office of Federal Investigations, but has since divested itself, selling its staketo Providence Equity Partners in 2007.[citation needed]Brand-name consumer companies that Carlyle owns include: Dunkin Brands, which owns DunkinDonuts and Baskin-Robbins, as well as oral hygiene company Water Pik Technologies.In March 2006, Carlyle acquired UC4 Software and became a majority shareholder in the company.In 2006 Carlyle acquired 68 percent interest in Oriental Trading Company which declared bankruptcy inAugust 2010.[13]In October 1997 Carlyle acquired United Defense Industries, bringing in over 60% of Carlyles defensebusiness. United Defense went public on the New York Stock Exchange in December 2001 with Carlyleretaining a stock ownership position. Carlyle completed the sale of all of its United Defense stock andexited the investment in April 2004.[14] (One major United Defense program was the XM2001 Crusaderself-propelled howitzer which was canceled by Defense Secretary Donald Rumsfeld in early 2002causing United Defense stock prices to fall 27 percent.[15]) Since then, The Carlyle Group has divestedthe majority of its interest from the defense industry.In July 2004, Carlyle formed DHS Technologies LLC, when it became a major investor in DHSSystems, the manufacturer of Deployable Rapid Assembly Shelter, or DRASH, military shelters andsupport equipment, and Reeves EMS emergency medical supplies.[16]In September 2006, Carlyle acquired Forba Dental Management, the owner of Small Smiles DentalCenters, the largest US chain of dental clinics for children.[17]On January 29, 2007, Carlyle announced that it would acquire Synagro Technologies, Inc, whichaccording to Synagros website is "the largest recycler of biosolids and other organic residuals in theUnited States". The total enterprise value of the transaction, including the assumption of debt, is $772million.[18]On June 28, 2007, Carlyle announced that it would partner with Onex Corporation to buy the AllisonTransmission unit from General Motors for $5.6 billion.[19]In June 2007, Carlyle agrees to acquire HD Supply for $10.3 billion, along with Bain Capital andClayton, Dubilier & Rice (with each agreeing to buy a one-third stake in the division). Home Depot soldtheir wholesale construction supply business to fund a stock repurchase estimated at $40 billion 5/23/2012
  4. 4. Carlyle Group - Wikipedia, the free encyclopedia Page 4 of 10On July 28, 2007, Carlyle announced the acquisition of Applus+ from its shareholders Agbar, UniónFenosa and Caja Madrid for an enterprise value of €1,480 million.[20]On December 18, 2007, David Rubenstein, representing the Carlyle Group, purchased the Magna Carta(one of seventeen copies) at Sothebys Auction House in New York City. He paid the Perot Foundation$21.3 million. Mr. Rubenstein expressed his intent for it to be returned to the National Archives fordisplay.On May 16, 2008, Booz Allen Hamilton announced that it would sell a majority stake in the USgovernment business to The Carlyle Group for $2.54 billion. The transaction was expected to becomplete July 31, 2008.[21]On August 2008, Carlyle Group bought IRIS Unified Ag through FRS Global.On October 16, 2009, Carlyle Group bought Metaldyne - a global automotive components supplier.[22]On September 4, 2011, the carpet manufacturer Brintons announced that it had been acquired by theCarlyle Group.[23]On October 3, 2011, the pharmaceutical contract research organisation PPD announced that it had beenacquired by the Carlyle Group.[24]Carlyle Capital CorporationIn March 2008, Carlyle Capital Corporation, established in August 2006[25] for the purpose of makinginvestments in U.S. mortgage-backed securities, defaulted on about US$ 16.6 billion of debt as theglobal credit crunch brought about by the subprime mortgage crisis worsened for leveraged investors.The Guernsey-based affiliate of Carlyle was very heavily leveraged, up to 32 times by some accounts,and it expects its creditors to seize its remaining assets.[26] Tremors in the mortgage markets inducedseveral of Carlyles 13 lenders to make margin calls or to declare Carlyle in default on its loans.[27] Inresponse to the forced liquidation of mortgage-backed assets caused by the Carlyle margin calls andother similar developments in credit markets, on March 11, 2008, the Federal Reserve gave Wall Streetsprimary dealers the right to post mortgaged-back securities as collateral for loans of up to $200 billion inhigher-grade, U.S. government-backed securities.[28] On March 12, 2008, BBC News Online reportedthat "instead of underpinning the mortgage-backed securities market, it seems to have had the oppositeeffect, giving lenders an opportunity to dump the risky asset" and that Carlyle Capital Corp. "willcollapse if, as expected, its lenders seize its remaining assets."[29] On March 16, 2008, Carlyle Capitalannounced that its Class A Shareholders had voted unanimously in favor of the Corporation filing apetition under Part XVI, Sec. 96, of the Companies Law (1994) of Guernsey[30] for a "compulsorywinding up proceeding" to permit all its remaining assets to be liquidated by a court appointedliquidator.[31]The losses to the Carlyle Group due to the collapse of Carlyle Capital are reported to be "minimal from afinancial standpoint".[32]AlpInvest Main article: AlpInvest Partners 5/23/2012
  5. 5. Carlyle Group - Wikipedia, the free encyclopedia Page 5 of 10AlpInvest Partners is one of the largest privateequity investment managers globally with over €42 AlpInvest Partnersbillion (approximately $55 billion) undermanagement at the end of 2009, invested alongsidemore than 250 private equity firms. Founded in 1999,AlpInvest has historically been the exclusive managerof private equity investments for the investmentmanagers of two of the worlds largest pension fundsStichting Pensioenfonds ABP (ABP) and Stichting Type PrivatePensioenfonds Zorg en Welzijn (PFZW), both basedin the Netherlands. In January 2011, Carlyle Industry Private Equityannounced the acquisition of AlpInvest. The Headquarters Amsterdam, Netherlandsacquisition will add a leading fund-of-funds andsecondary platform, significantly expanding Carlyles Products Fund investments, Secondaries, Coglobal asset management business. -Investments, MezzanineAlpInvest pursues investment opportunities across the Total assets €42 billion ($55 billion)entire spectrum of private equity including: large Parent The Carlyle Groupbuyout, middle-market buyout, venture capital,growth capital, mezzanine, distressed and sustainable Website www.AlpInvest.comenergy investments. ( firm also invests through a range of privateequity investment channels, which include: new fund commitments, secondary market purchases, equityco-investments and mezzanine investments. AlpInvest invests primarily in private equity limitedpartnerships and effectively acts as a fund investor, making commitments to private equity fundsglobally. Between 2000 and 2010, AlpInvest made 389 fund investments managed by 226 differentgeneral partners.[2] AlpInvest will invest with these firms either by making commitments to newinvestment funds or by purchasing funds through the private equity secondary market. AlpInvest is oneof the largest private equity fund investors and is also among the largest and most active andexperienced investors in private equity secondaries. The Secondary Investments team acquires orrestructures portfolios of private equity assets ranging in size from €1 million to more than €1 billion.[2]AlpInvest also invests directly alongside some of the largest private equity investors through an activeco-investment program and will make mezzanine debt investments into companies owned by financialsponsors.[33]AlpInvest has offices in New York, Amsterdam, Hong Kong and London with over 70 investmentprofessionals and over 115 employees.Carlyle in the MediaDocumentariesCarlyle has been profiled in two notable documentaries, Michael Moores Fahrenheit 911 and WilliamKarels The World According to Bush.In the documentary film Fahrenheit 911, Michael Moore makes nine allegations concerning the CarlyleGroup, including: That the Bin Laden and Bush families were both connected to the Group; thatfollowing the attacks on September 11, the bin Laden family’s investments in the Carlyle Group becamean embarrassment to the Carlyle Group and the family was forced to liquidate their assets with the firm; 5/23/2012
  6. 6. Carlyle Group - Wikipedia, the free encyclopedia Page 6 of 10that the Carlyle group was, in essence, the 11th largest defense contractor in the United States.[34] Moorefocused on Carlyles connections with George H. W. Bush and his Secretary of State James A. Baker III,both of whom had at times served as advisors to the firm.A Carlyle spokesman noted in 2003 that its 7% interest in defense industries was far less than severalother Private equity firms.[35] Carlyle also has provided detail on its links with the Bin Laden family,specifically the relatively minor investments by an estranged half brother.[36]In his documentary The World According to Bush (May 2004), William Karel interviewed FrankCarlucci to discuss the presence of Shafiq bin Laden, Osama bin Ladens estranged brother, at Carlylesannual investor conference while the September 11 attacks were occurring.[36][37]Zeitgeist The Movie makes similar claims that The Carlyle Group may have played a part in 9/11.Controversial LegislationIn February 2008, a US Senate bill was introduced that would increase the regulation of nursing homessuch as those run by HCR Manor Care which Carlyle purchased in December 2007.[38]Also in February 2008, a bill was introduced in California that would have barred CalPERS frominvesting money "with private-equity firms that are partly owned by countries with poor records onhuman rights," which would include Carlyle because Mubadala Development is owned by part of theUnited Arab Emirates. The California bill was later withdrawn.[39]Notable current and former employees and advisorsBusiness ■ G. Allen Andreas - Chairman of the Archer Daniels Midland Company, Carlyle European Advisory Board ■ Daniel Akerson - Board member at 7 companies, Managing director at Carlyle ■ Joaquin Avila - former managing director at Lehman Brothers, Managing director at Carlyle ■ Laurent Beaudoin - CEO of Bombardier (1979-), former member of Carlyle’s Canadian Advisory board ■ Peter Cornelius - Managing Director of Nielsen Australia. ■ Paul Desmarais - Chairman of the Power Corporation of Canada, former member of Carlyle’s Canadian Advisory board ■ David M. Moffett - CEO of Freddie Mac, Former Senior advisor to the Carlyle ■ Karl Otto Pöhl - former President of the Bundesbank, Former Senior advisor to the Carlyle Group ■ Olivier Sarkozy (half-brother of Nicolas Sarkozy, President of France) - co-head and managing director of its recently launched global financial services division, since March 2008.[40] 5/23/2012
  7. 7. Carlyle Group - Wikipedia, the free encyclopedia Page 7 of 10Political figuresNorth America ■ James Baker III, former United States Secretary of State under George H. W. Bush, Staff member under Ronald Reagan and George W. Bush, Carlyle Senior Counselor, served in this capacity from 1993 to 2005. ■ George H. W. Bush, former U.S. President, Senior Advisor to the Carlyle Asia Advisory Board from April 1998 to October 2003. ■ Frank C. Carlucci, former United States Secretary of Defense from 1987 to 1989; Carlyle Chairman and Chairman Emeritus from 1989 to 2005. ■ Arthur Levitt, Chairman of the U.S. Securities and Exchange Commission (SEC) under President Bill Clinton, Carlyle Senior Advisor from 2001 to the present ■ Luis Téllez Kuenzler, Mexican economist, former Secretary of Communications and Transportation under the Felipe Calderón administration and former Secretary of Energy under the Zedillo administration. ■ Frank McKenna, former Premier of New Brunswick, Canadian Ambassador to the United States between 2005 and 2006 and current Deputy Chairman of Toronto-Dominion Bank; served on Carlyles Canadian advisory board. ■ Mack McLarty, Carlyle Group Senior Advisor (from 2003), White House Chief of Staff to President Bill Clinton from 1993 to 1994. ■ Randal K. Quarles, former Under Secretary of the U.S. Treasury under President George W. Bush, now a Carlyle managing directorEurope ■ John Major, former British Prime Minister, Chairman, Carlyle Europe from 2001–2004Asia ■ Anand Panyarachun, former Prime Minister of Thailand (twice), former member of the Carlyle Asia Advisory Board until the board was disbanded in 2004 ■ Fidel V. Ramos, former president of the Philippines, Carlyle Asia Advisor Board Member until the board was disbanded in 2004 ■ Peter Chung, former associate at Carlyle Group Korea, who resigned in 2001 after 2 weeks on the job after his infamous email scandal ■ Thaksin Shinawatra, former Prime Minister of Thailand (twice), former member of the Carlyle Asia Advisory Board until 2001 when he resigned upon being elected Prime Minister.[41]Media ■ Norman Pearlstine - editor-in-chief of Time magazine from (1995–2005), senior advisor telecommunications and media group 2006-See also ■ Carlyle Group companies (category) 5/23/2012
  8. 8. Carlyle Group - Wikipedia, the free encyclopedia Page 8 of 10References 1. ^ a b c d e Carlyle Group Form S-1 Registration Statement ( . 2. ^ a b c d Carlyle Group annual report ( 20Files/2010%20Annual%20Report%20-%20English.pdf) 3. ^ "PEI 300" ( . Private Equity International. May 2011. Retrieved 25 May 2011. 4. ^ "PEI 50" ( (PDF). Private Equity International. May 2007. p. 2. Retrieved 23 July 2010. 5. ^ David A. Vise, "Area Merchant Banking Firm Formed," Washington Post, Oct. 5, 1987, F33 6. ^ Paul Farhi, "Chi-Chis Bid Won D.C. Investment Firm Wall Streets Attention," Washington Post, June 6, 1988, F1 7. ^ John Mintz, "Founder Going Beyond the Carlyle Group," Washington Post, Jan. 9, 1995, F9 8. ^ Thornton, Emily "Carlyle Changes Its Stripes ( ," BusinessWeek, February 12, 2007 9. ^ a b Heath, Thomas. "Government of Abu Dhabi Buys Stake in Carlyle." ( Washington Post, September 21, 2007, page D01. 10. ^ [1] ( 11. ^ "NY Cuomo: Tainted deals included Carlyle Group" ( Reuters, March 19, 2009 12. ^ Carlyle Pays $20 Million to Resolve Inquiry ( -20-million-to-resolve-cuomo-inquiry/) . New York Times, May 20, 2009 13. ^ McCarty, Dawn (2010-08-25). "Oriental Trading Co. Files for Bankruptcy in Delaware" ( much-as-1-billion-debt.html) . Bloomberg. files-for-bankruptcy-with-as-much-as-1-billion-debt.html. Retrieved 2010-09-28. 14. ^ United Defense Industries. (, July 31, 2005. Retrieved October 22, 2008. 15. ^ Peterson, Laura. Windfalls of War. United Defense Industries, L.P. ( Center for Public Integrity, October 31, 2003. 16. ^ The Carlyle Group: The Big Boys of Private Equity ( Defense Ventures 17. ^ Carlyle Group website, healthcare portfolio, 18. ^ "The Carlyle Group to Acquire Synagro Technologies for $5.76 Per Share" 2007-01-29 ( 19. ^ Reuters/Yahoo! News: "GM selling Allison for $5.6 billion," 2007-06-28 (;_ylt=AkwQPdUq52K03zZMJhbtWKIE1vA 20. ^ "Carlyle Group acquires Applus," 2007-07-28 ( Finance/Carlyle-Group-acquires-Applus-2054) 21. ^ 22. ^ Release.pdf 23. ^ "Brintons carpets acquired in deal of about £40m" ( . BBC News. September 4, 2011. 24. ^ 25. ^ Carlyle Capital Corporation Intends to File for Compulsory Winding up in Guernsey ( 26. ^ Carlyle Capital in default, on brink of collapse - Reuters ( 5/23/2012
  9. 9. Carlyle Group - Wikipedia, the free encyclopedia Page 9 of 10 27. ^ Washington Post "Carlyle Group Holding Crisis Talks in N.Y.," 03-10-08 ( hpid=moreheadlines) 28. ^ Fed Hopes to Ease Strain on Economic Activity 03-11-08 ( 29. ^ "Hedge fund on verge of collapse" ( . BBC News Online. 13 March 2008. 30. ^ Companies Law of Guernsey (1994 ( ) 31. ^ "Carlyle Capital Corporation Intends To File For Compulsory Winding Up In Guernsey" Carlyle Capital Corporation New Release, March 16, 2008 ( 20Releases/2007/item10306.html) 32. ^ Jessica Hall, Dane Hamilton (March 14, 2008). "CCCs Woes Seen as Small Blemish for Carlyle Group" ( . Reuters. 33. ^ LPs Seeking Co-investment Opportunities in Emerging Markets (Emerging Markets Private Equity, Quarterly Review Q4 2006) ( 26_0EMPE_QuarterlyReview_Vol2_Issue4.pdf) . Page 13. 34. ^ Moore, Michael "Factual Back-Up for Fahrenheit 9/11: Section Four" ( 35. ^ Doward, Jamie (2003-05-23). "Ex-presidents club gets fat on conflict". The Observer. 36. ^ a b Glassman, James K. "Big Deals. David Rubenstein and His Partners Have Made Billions With the Carlyle Group, the World’s Hottest Private Equity Firm. How Have They Made All That Money? Why Are They in Washington?" ( Washingtonian, June 2006. 37. ^ The Carlyle Group ( . Economist, Jun 26th 2003 38. ^ Heath, Thomas. "Pair of Proposals Take Aim at Carlyle Group." ( dyn/content/article/2008/02/14/AR2008021403573.html) Washington Post, February 15, 2008. 39. ^ Kasler, Dale. "Bill limiting CalPERS, CalSTRS investments withdrawn." ( Sacramento Bee, April 9, 2008. 40. ^ Nick Clarck, Carlyle poaches Olivier Sarkozy ( poaches-olivier-sarkozy-790939.html) , The Independent, 4 March 2008 (English) 41. ^ [2] ( reading ■ James K. Glassman, "Big Deals ( ," Washingtonian Magazine, June 2006 ■ Geoffrey Colvin & Ram Charan, "Private Lives ( postversion=2006112713) ," Fortune Magazine, November 27, 2006 ■ Private Equity Firms ( , Directory of Private Equity Firms ■ Emily Thornton, "Carlyle Changes Its Stripes ( ," BusinessWeek, February 12, 2007 ■ Dan Briody, The Iron Triangle: Inside the Secret World of the Carlyle Group, John Wiley & Sons, 2003, ISBN 0-471-28108-5. ■ Bin Laden Family Liquidates Holdings With Carlyle Group ( . New York Times: October 26, 2001. ■ Bin Laden Family Could Profit From a Jump In Defense Spending Due to Ties to U.S. Bank ( Wall Street Journal: September 27, 2001. 5/23/2012
  10. 10. Carlyle Group - Wikipedia, the free encyclopedia Page 10 of 10External links ■ The Carlyle Group ( (company website) 5/23/2012