The Carlyle Group, with some $157 billion under management, is one of the world's largest private investment firms. Activities include management-led buyouts, minority equity investments, real estate, venture capital, and leveraged finance opportunities in the energy and power, consumer and retail, and technology and business services industries. Other target sectors include financial services, health care, infrastructure, aerospace and defense, automotive, transportation, telecommunications, and media. Since its founding in 1987, Carlyle has made more than 950 investments. It has more than 30 offices across six continents. The company went public in 2012.
The Carlyle Group, which had been closely-held by its founding partners since it was formed in 1987, went public in May 2012. The $671 million in proceeds will be used to pay down debt and for general operating purposes such as growth, acquisitions, and investments.
Although the majority of its money is in North America, Carlyle Group also has investments in Asia and Europe, and has been making inroads in emerging markets in South America, the Middle East, Africa, and Russia. The firm has 33 offices on six continents.
The Carlyle Group (TCG) operates four business segments: Corporate Private Equity, including buyout and growth capital funds, accounts for more than two-thirds of total revenue; Real Assets and Global Market Strategies (15% each); and its newest business segment Fund of Funds Solutions. The Fund of Funds Solutions business was formed in July 2011 upon the completion of TCG's acquisition of a 60% equity stake in AlpInvest. TCG took a majority stake in the Dutch fund investor (with some $44 billion in assets under management) to boost its asset management business. The deal helped Carlyle diversify beyond its traditional leveraged buyout platform.
The Carlyle Group's revenue increased by 2% in 2011 vs. 2010, while net income fell 11% over the same period. The modest uptick in revenue was due to an increase in interest and other income of consolidated funds and fund management fees.
Carlyle has traditionally been known for turning small acquisitions into big companies, but during the past few years it has been making larger deals. It has stakes in more than 200 firms, including Dunkin' Brands, Hertz, BankUnited, and SS&C Technologies.
In December 2012 Carlyle and international private equity firm BC Partners acquired Hamilton Sundstrand from United Technologies in a deal valued at about $3.5 billion. The newly independent company subsequently became Neodyne Industries, a manufacturer of industrial pumps and compressors with three global industrial businesses: Milton Roy, Sundyne, and Sullair. In October 2012 Carlyle completed a $3.3 billion acquisition of Seattle-based Getty Images, which had been taken private by Hellman & Friedman fours year earlier.
Carlyle previously teamed with Hellman & Friedman in late 2011 to acquire contract research organization PPD for approximately $3.9 billion. Also in 2011 Carlyle bought 42% of Alamar Foods, a Saudi company that operates the Domino's Pizza and Wendy's fast food chains in the Middle East.
With cable and mobile Internet usage showing no signs of slowing down, Carlyle completed a couple of large telecommunications deals in early 2011. It bought CommScope, which makes coaxial and fiber-optic cables, for some $3.36 billion, and Syniverse Technologies, a provider of roaming, messaging, and related services for mobile operators and Internet providers, for approximately $2.6 billion. – less