Carlyle Group
Encyclopedia
The Carlyle Group is an American-based global asset management firm, specializing in private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....

, based in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....

  The Carlyle Group operates in four business areas: corporate private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....

, real assets
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...

, market strategies
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...

 and fund-of-funds, through its AlpInvest
AlpInvest Partners
AlpInvest Partners is a private equity investment manager and at the end of 2009 globally managed over €42 billion ....

 subsidiary. In its 2010 annual report, Carlyle reported assets in excess of $150 billion under management diversified over 84 distinct funds. The firm employs more than 890 employees, including 495 investment professionals, in 20 countries with offices in the Americas
Americas
The Americas, or America , are lands in the Western hemisphere, also known as the New World. In English, the plural form the Americas is often used to refer to the landmasses of North America and South America with their associated islands and regions, while the singular form America is primarily...

, Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

, Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...

, and Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

, and its portfolio companies employ more than 415,000 people worldwide. The firm has over 1,300 investment partners in 71 countries.

According to a 2011 ranking called the PEI 300 based on capital raised over the last five years, Carlyle was ranked as the third largest private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....

 firm in the world, after TPG Capital and Goldman Sachs Principal Investment Area. Carlyle had been ranked first in the 2007 listing.

In 2010, the Financial Times announced that Carlyle Group is the private equity firm of the year.

Investment focus

Carlyle invests primarily in the following industries: aerospace
Aerospace engineering
Aerospace engineering is the primary branch of engineering concerned with the design, construction and science of aircraft and spacecraft. It is divided into two major and overlapping branches: aeronautical engineering and astronautical engineering...

 and defense
Defense contractor
A defense contractor is a business organization or individual that provides products or services to a military department of a government. Products typically include military aircraft, ships, vehicles, weaponry, and electronic systems...

, automotive
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...

, consumer and retail, energy and power
Electric power
Electric power is the rate at which electric energy is transferred by an electric circuit. The SI unit of power is the watt.-Circuits:Electric power, like mechanical power, is represented by the letter P in electrical equations...

, health care, real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...

, technology and business services
Quaternary sector of industry
The quaternary sector of the economy is a way to describe a knowledge-based part of the economy which typically includes services such as information generation and sharing, information technology, consultation, education, research and development, financial planning, and other knowledge-based...

, telecommunications and media
Mass media
Mass media refers collectively to all media technologies which are intended to reach a large audience via mass communication. Broadcast media transmit their information electronically and comprise of television, film and radio, movies, CDs, DVDs and some other gadgets like cameras or video consoles...

, and transport
Transport
Transport or transportation is the movement of people, cattle, animals and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline, and space. The field can be divided into infrastructure, vehicles, and operations...

ation. The Carlyle Group's investments are focused on East Asia
East Asia
East Asia or Eastern Asia is a subregion of Asia that can be defined in either geographical or cultural terms...

, Europe and North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...

, with most investment money coming from the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 (65%), Europe (25%), Asia (6%), Latin America
Latin America
Latin America is a region of the Americas where Romance languages  – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...

, and the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

. Defense investments represent about 1% of the group's current portfolio; for example, Carlyle owns 33.8% of QinetiQ
QinetiQ
Qinetiq is a British global defence technology company, formed from the greater part of the former UK government agency, Defence Evaluation and Research Agency , when it was split up in June 2001...

, the privatized British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 defense contractor
Defense contractor
A defense contractor is a business organization or individual that provides products or services to a military department of a government. Products typically include military aircraft, ships, vehicles, weaponry, and electronic systems...

.

History

Carlyle was founded in 1987 by five Washington executives: William E. Conway, Jr.
William E. Conway, Jr.
William E. Conway, Jr. or Bill Conway is one of the three co-founders of The Carlyle Group.-Biography:William Conway received his undergraduate degree from Dartmouth College and an MBA from the University of Chicago Booth School of Business.He started his career by serving in a variety of...

, Stephen L. Norris
Stephen L. Norris
Stephen L. Norris is one of the co-founders of The Carlyle Group, an American private equity firm and currently the Chairman of Stephen Norris Capital Partners, LLC. He is a former member of the Federal Retirement Thrift Investment Board, who was appointed by President George H. W. Bush in...

, David M. Rubenstein, Daniel A. D'Aniello
Daniel A. D'Aniello
Daniel A. D’Aniello, along with William E. Conway, Jr., and David Rubenstein, is a co-founder of The Carlyle Group, an American private equity firm. He is currently a Managing Director at Carlyle....

 and Greg Rosenbaum
Greg Rosenbaum
Greg Rosenbaum is an American merchant banker based in Bethesda, Maryland. He is currently the CEO of Empire Kosher Poultry, Inc., the largest producer of kosher poultry in the United States.-Education:...

. Rosenbaum left in 1987; Norris left in 1995. The three remaining founders are reported to collectively own around a 50% interest in the group's general partnership. The rest of Carlyle is owned by a group of individuals, most of whom serve as managing directors, and by two institutional investors.
In 2001, the California Public Employees' Retirement System (CalPERS
CalPERS
The California Public Employees' Retirement System or CalPERS is an agency in the California executive branch that "manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families"...

) acquired a 5.5% holding in Carlyle's management company for $175 million. The investment was valued at approximately $1 billion by 2007 at the height of the 2000s buyout boom.

Lou Gerstner, former chairman and CEO of IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...

 and Nabisco
Nabisco
Nabisco is an American brand of cookies and snacks. Headquartered in East Hanover, New Jersey, the company is a subsidiary of Illinois-based Kraft Foods. Nabisco's plant in Chicago, a production facility at 7300 S...

, was appointed chairman of Carlyle in January 2003 and served in that position through October 2008. Gerstner remains with Carlyle as a senior advisor.

In September 2007, Mubadala Development Company
Mubadala Development Company
Mubadala Development Company PJSC was established in October 2002 as a Public Joint Stock Company and is a wholly owned investment vehicle of the Government of Abu Dhabi, in the United Arab Emirates....

, an investment vehicle for the government of Abu Dhabi
Abu Dhabi (emirate)
Abu Dhabi, officially the Emirate of Abu Dhabi, , is one of seven emirates that constitute the United Arab Emirates . It is the capital of UAE and is the largest emirate by area , and second-largest by population , accounting for approximately 86% of the total land area of the UAE...

 of the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...

, purchased a 7.5% stake for $1.35 billion.

In November 2008, The Carlyle Group was named Private Equity firm of the year in the U.S. at the Financial Times-Mergermarket 2008 M&A Awards.

In 2000, Carlyle entered into a joint venture with Riverstone Holdings
Riverstone Holdings
Riverstone Holdings is a private equity firm focused on leveraged buyout and growth capital investments in the energy and power sectors. The firm focuses on oil and gas exploration, midstream pipeline, electric generation, energy and power services as well as energy and power technology...

, an energy and power focused private equity firm founded by former Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...

 investment bankers. In March 2009, New York State and federal authorities began an investigation into payments made by Carlyle and Riverstone to placement agents allegedly made in exchange for investments from the New York State Common Retirement System, the state's pension fund. It was alleged that these payments were in fact bribes or kickbacks, made to pension officials who have been under investigation by New York State Attorney General
New York State Attorney General
The New York State Attorney General is the chief legal officer of the State of New York. The office has been in existence in some form since 1626, under the Dutch colonial government of New York.The current Attorney General is Eric Schneiderman...

, Andrew Cuomo
Andrew Cuomo
Andrew Mark Cuomo is the 56th and current Governor of New York, having assumed office on January 1, 2011. A member of the Democratic Party, he was the 64th New York State Attorney General, and was the 11th United States Secretary of Housing and Urban Development...

. In May 2009, Carlyle agreed to pay $20 million in a settlement with Cuomo and accepted changes to its fundraising practices.

In September 2011, Carlyle filed with the SEC for an initial public offering that could raise as much as $1 billion.

Current portfolio and major acquisitions

Carlyle has investments spread out over several different industries, with about 22% of their investments in energy
Energy
In physics, energy is an indirectly observed quantity. It is often understood as the ability a physical system has to do work on other physical systems...

 and power
Electric power
Electric power is the rate at which electric energy is transferred by an electric circuit. The SI unit of power is the watt.-Circuits:Electric power, like mechanical power, is represented by the letter P in electrical equations...

, 19% in real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...

, 15% in technology
Technology
Technology is the making, usage, and knowledge of tools, machines, techniques, crafts, systems or methods of organization in order to solve a problem or perform a specific function. It can also refer to the collection of such tools, machinery, and procedures. The word technology comes ;...

 and business services, 8% in consumer and retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...

, 8% in industrial, 6% in telecommunications and media
Mass media
Mass media refers collectively to all media technologies which are intended to reach a large audience via mass communication. Broadcast media transmit their information electronically and comprise of television, film and radio, movies, CDs, DVDs and some other gadgets like cameras or video consoles...

, 6% in transportation, 6% in healthcare, 5% in aerospace
Aerospace
Aerospace comprises the atmosphere of Earth and surrounding space. Typically the term is used to refer to the industry that researches, designs, manufactures, operates, and maintains vehicles moving through air and space...

, and 4% devoted to other industries, according to their 2008 annual report.

Noted current and former portfolio companies include Dex Media
Dex Media
Dex Media, Inc. was a print and interactive marketing company. It was acquired by R.H. Donnelley, which became Dex One Corporation in February 2010...

, the former directories business of Qwest Communications; Willcom
Willcom
is a Japanese PHS operator, offering flat-rate wireless network data transmission and flat-rate voice calls for its subscribers.The company was formerly known as DDI Pocket, a subsidiary of KDDI. In 2004, the Carlyle Group acquired a majority stake from KDDI and changed the name of the company in...

, a Japanese wireless company; Casema
Casema
Casema was a major Dutch provider of cable television, internet and telephone services until the merger with Multikabel and @Home to Ziggo on May 16, 2008...

, a Dutch cable company; and Insight Communications
Insight Communications
Insight Communications is the 13th largest multiple system operator in the United States with approximately 692,000 customers in the three contiguous states of Kentucky, Indiana and Ohio...

, the ninth largest cable company in the U.S. The Carlyle Group was once a major investor in US Investigations Services, which is the privatized arm of the United States Office of Personnel Management
Office of Personnel Management
The United States Office of Personnel Management is an independent agency of the United States government that manages the civil service of the federal government. The current Director is John Berry.-History:...

's Office of Federal Investigations, but has since divested itself, selling its stake to Providence Equity Partners
Providence Equity Partners
Providence Equity Partners is a global private equity investment firm focused on media, entertainment, communications and information investments...

 in 2007.

Brand-name consumer companies that Carlyle owns include: Dunkin' Brands, which owns Dunkin' Donuts
Dunkin' Donuts
Dunkin' Donuts is an international doughnut and coffee retailer founded in 1950 by William Rosenberg in Quincy, Massachusetts; it is now headquartered in Canton...

 and Baskin-Robbins
Baskin-Robbins
Baskin-Robbins is a global chain of ice cream parlors founded by Burt Baskin and Irvine Robbins in 1953, from the merging of their respective ice cream parlors, in Glendale, California. It claims to be the world's largest ice cream franchise, with more than 5,800 locations, 2,800 of which are...

, as well as oral hygiene
Oral hygiene
Teeth cleaning is part of oral hygiene and involves the removal of dental plaque from teeth with the intention of preventing cavities , gingivitis, and periodontal disease. People routinely clean their own teeth by brushing and interdental cleaning, and dental hygienists can remove hardened...

 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
Oriental Trading Company
The Oriental Trading Company is a direct marketing company for novelties, small toys, and party items. It was founded in 1932 as one of the United States' first wholesale companies. It is based in Omaha, Nebraska, and its majority owner is the Carlyle Group...

 which declared bankruptcy in August 2010.

In October 1997 Carlyle acquired United Defense Industries
United Defense
United Defense Industries was a United States defense contractor which is now part of BAE Systems Land and Armaments. This company produces combat vehicles, artillery, naval guns, missile launchers and precision munitions.-History:...

 , bringing in over 60% of Carlyle's defense business. United Defense went public on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...

 in December 2001 with Carlyle retaining a stock ownership position. Carlyle completed the sale of all of its United Defense stock and exited the investment in April 2004. (One major United Defense program was the XM2001 Crusader
XM2001 Crusader
The XM2001 Crusader was to be the United States Army's next-generation self-propelled howitzer , designed to improve survivability, lethality, mobility, and effectiveness and planned to be introduced by 2008. United Defense was the prime contractor; General Dynamics the major subcontractor...

 self-propelled howitzer which was canceled by Defense Secretary Donald Rumsfeld in early 2002 causing United Defense stock prices to fall 27 percent.) Since then, The Carlyle Group has divested the majority of its interest from the defense industry.

In July 2004, Carlyle formed DHS Technologies LLC, when it became a major investor in DHS Systems, the manufacturer of Deployable Rapid Assembly Shelter
Deployable rapid assembly shelter
DRASH is a portable, geodesic shelter that can be set up within minutes of arriving on site with no special tools. The structure is supported by composite struts. DHS Systems LLC handles all the manufacturing, maintenance, training and sales for these shelters.- Design :DRASH shelters have...

, or DRASH, military shelters and support equipment, and Reeves EMS emergency medical supplies.

In September 2006, Carlyle acquired Forba Dental Management, the owner of Small Smiles Dental Centers
Small Smiles Dental Centers
Small Smiles Dental Centers is a privately owned US chain of dental clinics focused on serving children from low-income families. Small Smiles has 70 centers located in 22 states and Washington, D.C., and says that it serves hundreds of thousands of children annually.In January 2010, it gained...

, the largest US chain of dental clinics for children.

On January 29, 2007, Carlyle announced that it would acquire Synagro Technologies, Inc, which according to Synagro's website is "the largest recycler of biosolids and other organic residuals in the United States". The total enterprise value of the transaction, including the assumption of debt, is $772 million.

On June 28, 2007, Carlyle announced that it would partner with Onex Corporation to buy the Allison Transmission
Allison Transmission
Allison Transmission is an American manufacturer of commercial duty automatic transmissions and hybrid propulsion systems. Allison products are specified by over 250 of the world’s leading vehicle manufacturers and are used in many market sectors including bus, refuse, fire, construction,...

 unit from General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...

 for $5.6 billion.

In June 2007, Carlyle agrees to acquire HD Supply
HD Supply
HD Supply is a leading wholesale distribution company, providing a broad range of products and services to professional customers in the infrastructure & energy, maintenance, repair & improvement and specialty construction markets. With a diverse portfolio of industry-leading businesses, HD Supply...

 for $10.3 billion, along with Bain Capital
Bain Capital
Bain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as an early-stage, growth-oriented investment fund, Bain Capital today manages approximately $65 billion in assets, and its strategies include private...

 and Clayton, Dubilier & Rice (with each agreeing to buy a one-third stake in the division). Home Depot sold their wholesale construction supply business to fund a stock repurchase estimated at $40 billion

On July 28, 2007, Carlyle announced the acquisition of Applus+ from its shareholders Agbar, Unión Fenosa
Unión Fenosa
Unión Fenosa, S.A., is a large Spanish company dedicated to the production and distribution to end users of gas and electricity. It has installed capacity of 11,120 megawatts of power and 8.9 million customers. The headquarters are in Madrid and the chairman is Pedro López Jiménez...

 and Caja Madrid for an enterprise value of €1,480 million.

On December 18, 2007, David Rubenstein
David Rubenstein
David M. Rubenstein is the co-founder of The Carlyle Group, a global private equity firm. In the 2011 Forbes ranking of the wealthiest Americans, Rubenstein was ranked 148th with a net worth of $2.6 billion.-Early life and career:...

, representing the Carlyle Group, purchased the Magna Carta
Magna Carta
Magna Carta is an English charter, originally issued in the year 1215 and reissued later in the 13th century in modified versions, which included the most direct challenges to the monarch's authority to date. The charter first passed into law in 1225...

 (one of seventeen copies) at Sotheby's 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 for display.

On May 16, 2008, Booz Allen Hamilton
Booz Allen Hamilton
Booz Allen Hamilton Inc. , or more commonly Booz Allen, is an American public consulting firm headquartered in McLean, Fairfax County, Virginia, with 80 other offices throughout the United States. Ralph Shrader is its Chairman and Chief Executive Officer. The firm was founded by Edwin Booz in...

 announced that it would sell a majority stake in the US government business to The Carlyle Group for $2.54 billion. The transaction was expected to be complete July 31, 2008.

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.

On September 4th, 2011, the carpet manufacturer Brintons
Brintons
Brintons is a British manufacturer of carpets. It was founded in 1783 by William Brinton at Hill Pool in Chaddesley, Kidderminster to manufacture spun yarns....

 announced that it had been acquired by the Carlyle Group.

On October 3rd, 2011, the pharmaceutical contract research organisation PPD
Pharmaceutical Product Development
Pharmaceutical Product Development is a leading global contract research organization providing discovery, development and post-approval services as well as compound partnering programs. The company’s clients and partners include pharmaceutical, biotechnology, medical device, academic and...

 announced that it had been acquired by the Carlyle Group.

Carlyle Capital Corporation

In March 2008, Carlyle Capital Corporation, established in August 2006 for the purpose of making investments in U.S. mortgage-backed securities, defaulted on about US$ 16.6 billion of debt as the global credit crunch brought about by the subprime mortgage crisis
Subprime mortgage crisis
The U.S. subprime mortgage crisis was one of the first indicators of the late-2000s financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages....

 worsened for leveraged investors. The Guernsey
Guernsey
Guernsey, officially the Bailiwick of Guernsey is a British Crown dependency in the English Channel off the coast of Normandy.The Bailiwick, as a governing entity, embraces not only all 10 parishes on the Island of Guernsey, but also the islands of Herm, Jethou, Burhou, and Lihou and their islet...

-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. Tremors in the mortgage markets induced several of Carlyle's 13 lenders to make margin call
Margin Call
Margin Call is a 2011 American independent drama film, written and directed by J.C. Chandor. The film has an ensemble cast that includes Kevin Spacey, Demi Moore, Paul Bettany, Jeremy Irons, Zachary Quinto, Stanley Tucci, Simon Baker, and Penn Badgley...

s or to declare Carlyle in default on its loans. In response to the forced liquidation of mortgage-backed assets caused by the Carlyle margin calls and other similar developments in credit markets, on March 11, 2008, the Federal Reserve gave Wall Street's primary dealers
Primary dealers
Primary dealer is a formal designation of a firm as a market maker of government securities. Primary dealer systems are present in many countries including Canada, France, Italy, Spain, the United Kingdom, and the United States...

 the right to post mortgaged-back securities as collateral for loans of up to $200 billion in higher-grade, U.S. government-backed securities. On March 12, 2008, BBC News Online
BBC News Online
BBC News Online is the website of BBC News, the division of the BBC responsible for newsgathering and production. The website is the most popular news website in the United Kingdom and forms a major part of BBC Online ....

 reported that "instead of underpinning the mortgage-backed securities market, it seems to have had the opposite effect, giving lenders an opportunity to dump the risky asset" and that Carlyle Capital Corp. "will collapse if, as expected, its lenders seize its remaining assets." On March 16, 2008, Carlyle Capital announced that its Class A Shareholders had voted unanimously in favor of the Corporation filing a petition under Part XVI, Sec. 96, of the Companies Law (1994) of Guernsey for a "compulsory winding up proceeding" to permit all its remaining assets to be liquidated by a court appointed liquidator.

The losses to the Carlyle Group due to the collapse of Carlyle Capital are reported to be "minimal from a financial standpoint".

AlpInvest

AlpInvest Partners is one of the largest private equity investment managers globally with over €42 billion (approximately $55 billion) under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...

 at the end of 2009, invested alongside more than 250 private equity firms. Founded in 1999, AlpInvest has historically been the exclusive manager of private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....

 investments for the investment managers of two of the world's largest pension funds Stichting Pensioenfonds ABP
Stichting Pensioenfonds ABP
Stichting Pensioenfonds ABP , frequently referred to as ABP, is the pension fund for government and education employees in the Netherlands...

 (ABP) and Stichting Pensioenfonds Zorg en Welzijn
Stichting Pensioenfonds Zorg en Welzijn
Stichting Pensioenfonds Zorg en Welzijn is the second largest pension fund in the Netherlands...

 (PFZW), both based in the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

. In January 2011, Carlyle announced the acquisition of AlpInvest. The acquisition will add a leading fund-of-funds and secondary platform, significantly expanding Carlyle's global asset management business.

AlpInvest pursues investment opportunities across the entire spectrum of private equity including: large buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...

, middle-market buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...

, venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...

, growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...

, mezzanine
Mezzanine capital
Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares...

, distressed
Distressed securities
Distressed securities are securities of companies or government entities that are either already in default, under bankruptcy protection, or in distress and heading toward such a condition. The most common distressed securities are bonds and bank debt...

 and sustainable energy
Sustainable energy
Sustainable energy is the provision of energy that meets the needs of the present without compromising the ability of future generations to meet their needs. Sustainable energy sources include all renewable energy sources, such as hydroelectricity, solar energy, wind energy, wave power, geothermal...

 investments.

The firm also invests through a range of private equity investment channels, which include: new fund commitment
Fund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...

s, secondary market purchases, equity co-investment
Equity co-investment
An equity co-investment is a minority investment, made directly into an operating company, alongside a financial sponsor or other private equity investor, in a leveraged buyout, recapitalization or growth capital transaction. In certain circumstances, venture capital firms may also seek...

s and mezzanine investments
Mezzanine capital
Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares...

. AlpInvest invests primarily in private equity limited partnership
Limited partnership
A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners , there are one or more limited partners . It is a partnership in which only one partner is required to be a general partner.The GPs are, in all major respects,...

s and effectively acts as a fund investor
Fund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...

, making commitments to private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....

s globally. Between 2000 and 2010, AlpInvest made 389 fund investments managed by 226 different general partners. AlpInvest will invest with these firms either by making commitments to new investment funds or by purchasing funds through the private equity secondary market
Private equity secondary market
In finance, the private equity secondary market refers to the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds....

. AlpInvest is one of the largest private equity fund
Fund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...

 investors and is also among the largest and most active and experienced investors in private equity secondaries
Private equity secondary market
In finance, the private equity secondary market refers to the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds....

. The Secondary Investments team acquires or restructures portfolios of private equity assets ranging in size from €1 million to more than €1 billion. AlpInvest also invests directly alongside some of the largest private equity investors through an active co-investment program and will make mezzanine debt
Mezzanine capital
Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares...

 investments into companies owned by financial sponsor
Financial sponsor
A financial sponsor is a term commonly used to refer to private equity investment firms, particularly those private equity firms that engage in leveraged buyout or LBO transactions....

s.

AlpInvest has offices in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

, Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...

, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...

 and London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 with over 70 investment professionals and over 115 employees.

Documentaries

Carlyle has been profiled in two notable documentaries, Michael Moore
Michael Moore
Michael Francis Moore is an American filmmaker, author, social critic and activist. He is the director and producer of Fahrenheit 9/11, which is the highest-grossing documentary of all time. His films Bowling for Columbine and Sicko also place in the top ten highest-grossing documentaries...

's Fahrenheit 911 and William Karel
William Karel
William Karel is a French film director and author. He is known for his historical and political documentaries.- Biography :After studying in Paris, Karel emigrated to Israel where he lived for about 10 years in a kibbutz...

's The World According to Bush
The World According to Bush
The World According to Bush is a 2004 French documentary, co-wriiten and directed by William Karel based on the book by Eric Laurent, about the presidency of George W. Bush and the history of the Bush family, including his grandfather Prescott Bush, who was on the board of German-owned companies...

.

In the documentary film Fahrenheit 911, Michael Moore
Michael Moore
Michael Francis Moore is an American filmmaker, author, social critic and activist. He is the director and producer of Fahrenheit 9/11, which is the highest-grossing documentary of all time. His films Bowling for Columbine and Sicko also place in the top ten highest-grossing documentaries...

 makes nine allegations concerning the Carlyle Group, including: That the Bin Laden and Bush families were both connected to the Group; that following the attacks on September 11, the bin Laden family’s investments in the Carlyle Group became an embarrassment to the Carlyle Group and the family was forced to liquidate their assets with the firm; that the Carlyle group was, in essence, the 11th largest defense contractor in the United States. Moore focused on Carlyle's connections with George H. W. Bush
George H. W. Bush
George Herbert Walker Bush is an American politician who served as the 41st President of the United States . He had previously served as the 43rd Vice President of the United States , a congressman, an ambassador, and Director of Central Intelligence.Bush was born in Milton, Massachusetts, to...

 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 several other Private equity firm
Private equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...

s. Carlyle also has provided detail on its links with the Bin Laden family, specifically the relatively minor investments by an estranged half brother.

In his documentary The World According to Bush
The World According to Bush
The World According to Bush is a 2004 French documentary, co-wriiten and directed by William Karel based on the book by Eric Laurent, about the presidency of George W. Bush and the history of the Bush family, including his grandfather Prescott Bush, who was on the board of German-owned companies...

 (May 2004), William Karel
William Karel
William Karel is a French film director and author. He is known for his historical and political documentaries.- Biography :After studying in Paris, Karel emigrated to Israel where he lived for about 10 years in a kibbutz...

 interviewed Frank Carlucci to discuss the presence of Shafiq bin Laden, Osama bin Laden's estranged brother, at Carlyle's annual investor conference while the September 11 attacks were occurring.

Zeitgeist The Movie makes similar claims that The Carlyle Group may have played a part in 9/11.

Controversial Legislation

In February 2008, a US Senate bill was introduced that would increase the regulation of nursing homes such as those run by HCR Manor Care
HCR Manor Care
Manor Care, Inc., through its operating group HCR Manor Care, is a major provider in the United States of both short-term post-acute and long-term care. As of 2007, it had more than 500 skilled nursing and rehabilitation centers, assisted living facilities, outpatient rehabilitation clinics, and...

 which Carlyle purchased in December 2007.

Also in February 2008, a bill was introduced in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

 that would have barred CalPERS from investing money "with private-equity firms that are partly owned by countries with poor records on human rights," which would include Carlyle because Mubadala Development is owned by part of the United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...

. The California bill was later withdrawn.

Business

  • G. Allen Andreas - Chairman of the Archer Daniels Midland Company, Carlyle European Advisory Board
  • Daniel Akerson
    Daniel Akerson
    Daniel Francis "Dan" Akerson, is the current Chairman and CEO of General Motors. Akerson succeeded Edward Whitacre as CEO on September 1, 2010, and became Chairman of the Board on January 1, 2011. Akerson was a Managing Director of The Carlyle Group and head of global buyout prior to joining...

     -Board member at 7 companies, Managing director at Carlyle
  • Joaquin Avila
    Joaquin Avila
    Joaquin Avila is Managing Director of the global private equity firm, Carlyle Group, where he is responsible for researching and discovering opportunities in the field of buyout investments.He holds a B.S. from Universidad IberoAmericana, a M.S...

     - former managing director at Lehman Brothers, Managing director at Carlyle
  • Laurent Beaudoin
    Laurent Beaudoin
    Laurent Beaudoin, is a Canadian businessman.-Biography:Born in Laurier Station, Quebec, the son-in-law of Joseph Armand Bombardier, Beaudoin joined Bombardier Limited in 1963. He became Chairman and Chief Executive Officer of Bombardier Inc. in 1979...

     - CEO of Bombardier (1979-), former member of Carlyle’s Canadian Advisory board
  • Peter Cornelius - Managing Director of Nielsen Australia.
  • Paul Desmarais
    Paul Desmarais
    Paul Desmarais, Sr., is a Canadian financier in Montreal. With an estimated net worth of $US 4.5 billion , Desmarais was ranked by Forbes as the 4th wealthiest person in Canada and 235th in the world.Desmarais also owns homes in Palm Beach, Florida and New York.He is CEO of the Power Corporation...

     - Chairman of the Power Corporation of Canada
    Power Corporation of Canada
    Power Corporation of Canada is a Canadian company with assets in North America and Europe in a number of industries. These industries include media, pulp and paper, and financial services....

    , former member of Carlyle’s Canadian Advisory board
  • David M. Moffett
    David M. Moffett
    David McKenzie Moffett is an American businessman and was formerly the CEO of Freddie Mac. He was previously an executive with U.S. Bancorp. He also served as senior advisor to the Carlyle Group, and has been a director at eBay since July 2007...

     - CEO of Freddie Mac, Former Senior advisor to the Carlyle
  • Karl Otto Pöhl
    Karl Otto Pöhl
    Karl Otto Pöhl is a German economist and a President of the Bundesbank and Chairman of its Central Bank Council from 1980 to 1991....

     - former President of the Bundesbank, Former Senior advisor to the Carlyle Group
  • Olivier Sarkozy
    Olivier Sarkozy
    Olivier Sarkozy is a French-American businessman and the half-brother of French President Nicolas Sarkozy.-Early life:Olivier Sarkozy was born to Pal Sarkozy de Nagy-Bocsa and Christine de Ganay. His father was previously married to Andrée Mallah and had three children with her, including Nicolas...

     (half-brother of Nicolas Sarkozy
    Nicolas Sarkozy
    Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....

    , President of France) - co-head and managing director of its recently launched global financial services division, since March 2008.

North America

  • James Baker III
    James Baker
    James Addison Baker, III is an American attorney, politician and political advisor.Baker served as the Chief of Staff in President Ronald Reagan's first administration and in the final year of the administration of President George H. W. Bush...

    , former United States Secretary of State
    United States Secretary of State
    The United States Secretary of State is the head of the United States Department of State, concerned with foreign affairs. The Secretary is a member of the Cabinet and the highest-ranking cabinet secretary both in line of succession and order of precedence...

     under George H. W. Bush, Staff member under Ronald Reagan
    Ronald Reagan
    Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....

     and George W. Bush, Carlyle Senior Counselor, served in this capacity from 1993 to 2005.
  • George H. W. Bush
    George H. W. Bush
    George Herbert Walker Bush is an American politician who served as the 41st President of the United States . He had previously served as the 43rd Vice President of the United States , a congressman, an ambassador, and Director of Central Intelligence.Bush was born in Milton, Massachusetts, to...

    , 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
    United States Secretary of Defense
    The Secretary of Defense is the head and chief executive officer of the Department of Defense of the United States of America. This position corresponds to what is generally known as a Defense Minister in other countries...

     from 1987 to 1989; Carlyle Chairman and Chairman Emeritus from 1989 to 2005.
  • Arthur Levitt
    Arthur Levitt
    Arthur Levitt, Jr. was the twenty-fifth and longest-serving Chairman of the United States Securities and Exchange Commission from 1993 to 2001. Widely hailed as a champion of the individual investor, he has been criticized for not pushing for tougher accounting rules. Since May 2001 he has been...

    , 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
    Felipe Calderón
    Felipe de Jesús Calderón Hinojosa is the current President of Mexico. He assumed office on December 1, 2006, and was elected for a single six-year term through 2012...

     administration and former Secretary of Energy under the Zedillo administration.
  • Frank McKenna
    Frank McKenna
    Francis Joseph "Frank" McKenna, PC, OC, ONB, QC is a Canadian businessman and former politician and diplomat. He is currently Deputy Chairman of the Toronto-Dominion Bank. He served as Canadian Ambassador to the United States from 2005 to 2006...

    , former Premier of New Brunswick
    Premier of New Brunswick
    The Premier of New Brunswick is the first minister for the Canadian province of New Brunswick. They are the province's head of government and de facto chief executive....

    , Canadian Ambassador to the United States between 2005 and 2006 and current Deputee Chairman of Toronto-Dominion Bank
    Toronto-Dominion Bank
    The Toronto-Dominion Bank , is the second-largest bank in Canada by market capitalization and based on assets. It is also the sixth largest bank in North America. Commonly known as TD and operating as TD Bank Group, the bank was created in 1955 through the merger of the Bank of Toronto and the...

    ; served on Carlyle's Canadian advisory board.
  • Mack McLarty
    Mack McLarty
    Thomas F. "Mack" McLarty III is a prominent Arkansas business and political leader and former White House Chief of Staff for US President Bill Clinton...

    , Carlyle Group Senior Advisor (from 2003), White House Chief of Staff to President Bill Clinton from 1993 to 1994.
  • Randal K. Quarles
    Randal Quarles
    Randal Keith Quarles is a managing director at The Carlyle Group, one of the world’s largest private equity firms. From August 2001 until October 2006, he held several important financial policy posts in the George W. Bush administration, ultimately serving as Under Secretary of the Treasury for...

    , former Under Secretary of the U.S. Treasury under President George W. Bush, now a Carlyle managing director

Europe

  • John Major
    John Major
    Sir John Major, is a British Conservative politician, who served as Prime Minister of the United Kingdom and Leader of the Conservative Party from 1990–1997...

    , former British
    United Kingdom
    The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

     Prime Minister
    Prime minister
    A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...

    , Chairman, Carlyle Europe from 2001 - 2004

Asia

  • Anand Panyarachun
    Anand Panyarachun
    Anand Panyarachun was Thailand's Prime Minister twice, between 1991–1992 and once again in 1992. He was effective in initiating economic and political reforms, one of which was the drafting of Thailand's "Peoples' Constitution", which was promulgated in 1997 and abrogated in 2006...

    , former Prime Minister of Thailand
    Thailand
    Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...

     (twice), former member of the Carlyle Asia Advisory Board until the board was disbanded in 2004
  • Fidel V. Ramos
    Fidel V. Ramos
    Fidel "Eddie" Valdez Ramos , popularly known as FVR, was the 12th President of the Philippines from 1992 to 1998. During his six years in office, Ramos was widely credited and admired by many for revitalizing and renewing international confidence in the Philippine economy.Prior to his election as...

    , former president of the Philippines
    Philippines
    The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

    , 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
    Thaksin Shinawatra
    Thaksin Shinawatra is a Thai businessman and politician, who was Prime Minister of Thailand from 2001 to 2006, when he was overthrown in a military coup....

    , former Prime Minister of Thailand (twice), former member of the Carlyle Asia Advisory Board until 2001 when he resigned upon being elected Prime Minister.

Media

  • Norman Pearlstine
    Norman Pearlstine
    Norman Pearlstine joined Bloomberg L.P. in June 2008 as chief content officer, a newly-created position. In this role Pearlstine is charged with seeking growth opportunities for Bloomberg’s television, radio, magazine, and online products and to make the most of the company’s news operations.Prior...

     - editor-in-chief of Time
    Time (magazine)
    Time is an American news magazine. A European edition is published from London. Time Europe covers the Middle East, Africa and, since 2003, Latin America. An Asian edition is based in Hong Kong...

    magazine from (1995–2005), senior advisor telecommunications and media group 2006-

Further reading


External links

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