Abu Dhabi govt to buy 7.5% in Carlyle for $1.4 bn
Carlyle follows New York-based Blackstone, which sold a $3 billion stake to China’s state-owned investment company in May. A month later the New York-based firm sold shares in an IPO valu-ing it at $33.5 billion.
By Agencies |
LONDON: Carlyle Group, the second-biggest buyout firm, plans to sell a stake to the government of Abu Dhabi for $1.35 billion as it considers an initial public offering. Mubadala Development, an investment company owned by the government of Abu Dhabi, will buy a 7.5% non-voting stake, Carlyle said in a statement on Thursday. Mubadala also pledged an additional $500 million to a Carlyle investment fund. In all, the purchase values Washington-based Carlyle at $20 billion.
“Carlyle’s outstanding returns, broad portfolio and global presence are a tremendous fit,” Mubadala CEO Khaldoon Al Mubarak said in the statement.
Carlyle follows New York-based Blackstone, which sold a $3 billion stake to China’s state-owned investment company in May. A month later the New York-based firm sold shares in an IPO valuing it at $33.5 billion. Blackstone’s shares have tumbled 17% since the IPO as rising borrowing costs led to a drop in takeovers by leveraged buyout firms. Carlyle has put its own IPO plans on hold.
“We’ve always said we’d take a look at that, but we are taking a pause,” David Rubenstein, 58, said in an interview in New York on Wednesday. He founded Carlyle with Daniel D’Aniello and William Conway in 1987.
The firm’s other shareholders include the California Public Employees’ Retirement System, the biggest US pension fund. Calpers bought a 5% stake for $175 million in 2000. That deal valued Carlyle at $3.5 billion.
Mubadala’s investment “will add to Carlyle’s capital base, strategically expand our business and be used for additional investments,” Rubenstein said on Thursday’s statement.
Mubadala will buy the stake at a 10% discount and get some protection against any drop in the value of its holding, Carlyle said, without giving further details.
Carlyle was one of the firms that agreed to buy Home Depot’s contractor-supply unit in June. That deal almost ran aground when the banks threatened to walk away from providing financing. Atlanta-based Home Depot eventually agreed to reduce the price by 18% and the buyers each increased the amount of cash they paid.
Carlyle oversees about $76 billion in buyout and venture capital funds, second only to Blackstone’s $88 billion of assets under management. Carlyle owns companies that generate more than $87 billion in revenue and employ more than 286,000 people, according to the firm’s web site.
Abu Dhabi is the capital of the United Arab Emirates and owner of almost 10% of the world’s oil reserves. Like neighbouring Qatar, which today said it bought 20% of London Stock Exchange Group, it’s using energy earnings to buy stakes in overseas companies to diversify its income.
Owned by Abu Dhabi’s ruling al-Nahyan family, Mubadala’s investments include stakes in Ferrari and Swiss aircraft maintenance company SR Technics. The Abu Dhabi Investment Authority has invested in Carlyle’s buyout funds. Goldman Sachs advised Mubadala, while Carlyle was advised by Citigroup.
“Carlyle’s outstanding returns, broad portfolio and global presence are a tremendous fit,” Mubadala CEO Khaldoon Al Mubarak said in the statement.
Carlyle follows New York-based Blackstone, which sold a $3 billion stake to China’s state-owned investment company in May. A month later the New York-based firm sold shares in an IPO valuing it at $33.5 billion. Blackstone’s shares have tumbled 17% since the IPO as rising borrowing costs led to a drop in takeovers by leveraged buyout firms. Carlyle has put its own IPO plans on hold.
“We’ve always said we’d take a look at that, but we are taking a pause,” David Rubenstein, 58, said in an interview in New York on Wednesday. He founded Carlyle with Daniel D’Aniello and William Conway in 1987.
The firm’s other shareholders include the California Public Employees’ Retirement System, the biggest US pension fund. Calpers bought a 5% stake for $175 million in 2000. That deal valued Carlyle at $3.5 billion.
Mubadala’s investment “will add to Carlyle’s capital base, strategically expand our business and be used for additional investments,” Rubenstein said on Thursday’s statement.
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Mubadala will buy the stake at a 10% discount and get some protection against any drop in the value of its holding, Carlyle said, without giving further details.
Carlyle was one of the firms that agreed to buy Home Depot’s contractor-supply unit in June. That deal almost ran aground when the banks threatened to walk away from providing financing. Atlanta-based Home Depot eventually agreed to reduce the price by 18% and the buyers each increased the amount of cash they paid.
Carlyle oversees about $76 billion in buyout and venture capital funds, second only to Blackstone’s $88 billion of assets under management. Carlyle owns companies that generate more than $87 billion in revenue and employ more than 286,000 people, according to the firm’s web site.
Abu Dhabi is the capital of the United Arab Emirates and owner of almost 10% of the world’s oil reserves. Like neighbouring Qatar, which today said it bought 20% of London Stock Exchange Group, it’s using energy earnings to buy stakes in overseas companies to diversify its income.
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Owned by Abu Dhabi’s ruling al-Nahyan family, Mubadala’s investments include stakes in Ferrari and Swiss aircraft maintenance company SR Technics. The Abu Dhabi Investment Authority has invested in Carlyle’s buyout funds. Goldman Sachs advised Mubadala, while Carlyle was advised by Citigroup.
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