Abu Dhabi buys share in Carlyle

Source: Exec Digital UK

Date :24/09/2007 12:10:34

Carlyle Group, the US private equity group, has sold a 7.5 percent stake to the Government of Abu Dhabi for $1.35 billion (£670 million).

As part of the deal, Mubadala Development Company, which invests on behalf of the Abu Dhabi Government, has also committed $500 million to an investment fund managed by Carlyle.

Mubadala’s investment in the US buyout group comes after the Chinese Government acquired a 10 percent stake in Blackstone Group for $3 billion this year, alongside the buyout group’s initial public offering.

Investment

This is the second outside investment in Carlyle.

In 2000, CalPERS, the California Public Employees’ Retirement System, acquired a 5.5 percent stake in the US firm.

David Rubenstein, Carlyle’s co-founder said that the deal with Mubadala “will add to Carlyle’s capital base, strategically expand our business and be used for additional investments.”

Carlyle is one of the world’s biggest private equity businesses with more than $58.5 billion invested in more than 500 companies worldwide including brands such as Dunkin Donuts and its Hertz rental car business.

Mubadala's other investments include stakes in Ferrari and the Swiss aircraft maintenance company SR Technics.

Abu Dhabi is the capital of the United Arab Emirates and owner of almost 10 per cent of the world's oil reserves, and is using its earnings from the high oil price to buy stakes overseas in order to diversify its income.

The investment came as Carlyle was rumored to be considering an IPO.

Mr Rubenstein said that he still expected most of the large private equity firms to go public within five years.

He added that in Carlyle’s case they “haven’t decided what to do yet,” but that the investment would give Carlyle some “some new options.”

September 24 2007

Related Links

Carlyle Group

Mubadala Development