Carlyle Group aims for financial services firms
It's fair to say that Carlyle Group has been among the most active private equity firms this year.
The firm has said that for the first six months of the year it has made 122 investments worth $2.91 billion; 82 of the investments were in the second quarter. Since then, the deals have kept on coming.
"As of one week ago, when Carlyle announced its second-quarter results, the company said it had reached six more deals with a value of $1.6 billion. There was the joint-venture deal to keep open Sunoco's Philadelphia Refinery, a move that was expected to save hundreds of jobs and earned the praise of politicians...There were investments in hotels in China and Texas, an industry Carlyle particularly likes, and a deal to acquire auto-body repair-shop chain King Collision Repair Centers," notes Deal Journal.
One of the more interesting recent investments: Two Carlyle funds--the Carlyle Global Financial Services Partners and the Carlyle Partners V--took a 60 percent stake in TCW, the money management firm. The deal calls for TCW's management and key employees' ownership to rise to 40 percent from 17 percent and all portfolio managers are expected to stay with the firms. The financial terms were not disclosed.
The industry's take on this deal has been positive, and some wonder if private equity firms are poised to boost their activity in the financial service industry. The TCW deal was 2th made by Carlyle's financial services group and its first majority stake in an institutional money manager, notes P&I. It likely has its eyes on more gems.