Play The Rise Of The Private Equity Managers With Carlyle Group
Fri, Jul. 8, 1:46 PM
- An auction of Verizon's (VZ +0.9%) data centers has moved to a second round, CTFN reports.
- The carrier had launched a sales effort at the beginning of the year with hopes to drawing $2.5B or more.
- Now rumored suitors include Providence Equity, Carlyle Group (NASDAQ:CG) and Blackstone Group (NYSE:BX) among those who might pay $2.5B-$3B, a price that weeds out a lot of strategic buyers.
- The move to sell data centers -- news that was shot down in the fall by CFO Fran Shammo -- would be a reversal of its actions five years ago, when it paid $1.4B for Terremark in a move into hosting and co-location.
Fri, Jun. 24, 3:13 PM
- With London's status as a financial hub, Brexit raises questions over just how firms - including U.S. asset managers - will do business on the Continent from the City (such as selling financial products) under the new regime.
- The good news, says Citi's William Katz, is the poor performance of most of the sector means investors may have already priced in falling NAVs and AUM.
- The worst of the fallout, says Katz, will hit those managers with the largest presence in the U.K., including Invesco (IVZ -13%) and Affiliated Mangers Group (AMG -10.8%). Again, the recent struggles for both these stocks means the blow could be softer than feared.
- While the whole affair could make for good buying opportunities for private-equity funds, that doesn't mean the stock prices of players like Carlyle Group (CG -2.8%), Blackstone (BX -5%), KKR (KKR -6%), Fortress (FIG -3.9%), and Oaktree (OAK -1.7%) couldn't come under a great deal of pressure in the short term.
Thu, Jun. 23, 6:56 PM
- Carlyle-backed (NASDAQ:CG) Philadelphia Energy Solutions, which breathed new life into a "zombie" refinery complex on the U.S. east coast now is seeking to sell the investment in the face of market headwinds, Reuters reports.
- The company reportedly is offering prospective buyers the potential to break up the two plants, which together make up the east coast's largest refinery, with the capacity to convert 330K bbl/day of crude into products such as gasoline, diesel and jet fuel.
- The renewed interest in selling comes after an attempt to take PES public was indefinitely postponed last year and after millions of dollars in public investment; the planned IPO valued the refinery at $1.3B, but buyers who have engaged in talks over the past year have valued the complex at less than half that amount, according to the report.
Thu, Jun. 2, 2:33 PM
- Concordia Healthcare (CXRX -14.2%) was up big earlier today on a rumor Blackstone (NYSE:BX) was near a deal to purchase. Now the WSJ is reporting both Blackstone and The Carlyle Group (NASDAQ:CG) did not submit final bids which were due on Tuesday, leaving Apollo Global (NYSE:APO) as potentially the last P-E suitor standing.
Thu, May 26, 8:51 AM
- The $2.9T industry could lose about 25% of its assets in the next year thanks to continuing underperformance, says Blackstone (NYSE:BX) President Tony James.
- For its part, Blackstone is the world's largest allocator to hedge funds, provides startup money to managers, and takes equity stakes in hedge funds. While performance is a concern within Blackstone, James says results in its hedge fund businesses are topping the industry average.
- Hedge fund underperformance is likely the result of the sustained bull market, says James, as many hedged funds are just that ... hedged.
- As for '2 and 20,' it's "hard to justify these days," he says.
- Interested parties include: OZM, CG, FIG
Mon, May 23, 5:57 PM
- Unilever (NYSE:UL), L'Oreal (OTCPK:LRLCF), Henkel (OTCPK:HENKY) and other companies have submitted first-round bids in an auction for hair care products maker Vogue International, which could value Vogue at $2.5B-$3B, Reuters reports.
- The bids come three years after a lawsuit hurt Vogue's effort to sell itself; buyout firm Carlyle Group (NASDAQ:CG) acquired a 49% stake in the company last year.
- Florida-based Vogue produces OGX shampoo, which has enjoyed strong growth propelled by its colorful packaging which stands out in drugstore aisles.
Fri, May 20, 4:48 PM
- Carlyle Group (CG +2.5%) says Mitch Petrick, its managing director, is stepping down -- the latest in a wave of key departures at the top.
- He'll become a senior adviser, CNBC says. Meanwhile, the firm had already seen its approach to succession pressed over the past couple of years with key departures in Mike Cavanagh (who left to become CFO at Comcast) and Adena Friedman (who left a post as Carlyle CFO to rejoin Nasdaq OMX).
- Petrick will be succeeded by Kewsong Lee, who will also stay deputy CIO for global private equity, Dan Primack says. President and COO Glenn Youngkin will also take on overseeing the energy and natural resources group, as that group's investing chief Kenneth Hersh will become a deputy CIO.
- Now read Following Alpha: Okumus Fund - Q4 2015 »
Mon, May 9, 4:32 PM
Wed, Apr. 27, 8:46 AM
- Q1 distributable earnings of $129M or $0.35 per share vs. $148M and $0.43 one year ago. Distribution this quarter of $0.26 per share vs. $0.33. Economic net income of $89M vs. $273M. Fee-related earnings of $51M flat. Net performance fees of $75M down from $282M.
- Total AUM of $178.1B vs. $192.7B a year ago. Fee-earning AUM of $130.3B vs. $129.4B.
- After redemptions, just $100M of new capital raised during quarter, but $12.1B over LTM. $3.9B put to work in Q1 and $11.3B LTM. Realized proceeds of $3.2B in Q1 and $16.7B LTM. Carry fund return of 1% this quarter and 1% LTM.
- Conference call is underway.
- Previously: Carlyle beats by $0.08, beats on revenue (April 27)
- CG flat premarket
Wed, Apr. 27, 6:35 AM
Tue, Apr. 26, 5:09 AM
- U.K. listed investment vehicle Atlas Mara, which was created by billionaire Ashish Thakkar and former Barclays (NYSE:BCS) CEO Bob Diamond, has confirmed that it is interested in acquiring the U.K. bank's 62% holding in its African operations.
- However, Atlas Mara didn't disclose whether Carlyle (NASDAQ:CG) is involved in the process despite reports saying that the U.S. firm is in talks with Diamond over the deal.
- Barclays Africa Group is listed in Johannesburg with a market capitalisation of 123B rand ($8.5B), putting the value of the 62% stake at $5.27B. (PR)
Mon, Apr. 25, 3:15 AM
- Carlyle (NASDAQ:CG) has joined up with former Barclays (NYSE:BCS) CEO Bob Diamond to bid for the U.K. bank's 62% holding in its African operations, reports say.
- Barclays Africa Group is listed in Johannesburg with a market capitalisation of 122B rand ($8.5B), putting the value of the stake at $5.27B.
- Barclays is selling the unit due to increasing regulatory pressures.
Thu, Apr. 14, 2:57 PM
- P-E firm Carlyle Group (CG -1%) is in serious talks to buy oilfield services assets from Halliburton (HAL -0.4%) and Baker Hughes (BHI +5.2%) that could be valued at more than $7B, Dow Jones reports.
- The talks would mark a shift for HAL and BHI, which have focused on overcoming Justice Department objections to their planned merger by attempting to sell the assets to General Electric (GE +0.1%); GE remains in the mix, but reaching agreement on a price for the assets has been difficult, according to the report.
- The need for HAL and BHI to strike a divestiture deal took on increased urgency last week when the DoJ filed an antitrust lawsuit challenging their proposed $35B merger.
- Now read The Halliburton-Baker Hughes merger is falling apart - what happens next?
Tue, Mar. 15, 11:56 AM
- Private-equity based asset managers have the best businesses model he's seen in thirty years of covering financial stocks, says analyst Chris Kotowski. Yet the shares "languish" at less that 7x 2017 cash distributable earnings estimates.
- Over the last five years, alternative asset managers have grown AUM by an average 14.5% annually, roughly double that of traditional asset managers. On revenue, alternatives have averaged 16.2% growth vs. 5.5% for traditional players.
- Kotowski and team calculate fair value for Blackstone (BX -2.5%) at $32, roughly 20% upside; Carlyle Group (CG -1.7%) at $31, about a double; KKR (KKR -1.3%) at $23, or 70% upside.
- ETFs: PSP, PEX
Mon, Feb. 22, 3:39 PM
- "To be able to keep paying dividends, keep having the money to spend on capital expenditures, but also paying back the banks, people are forced to selll more non-core properties," says Carlyle's (CG +2.5%) head of international energy, Marcel van Poecke, explaining why he and other private-equity dealmakers are excited about the coming months.
- Private-equity firms in total have raised about $20B for energy deals in the past two years, but most has remained as dry powder as oil producers have resisted pressure to sell. That's about to change. "The do-nothing scenario is disappearing very quickly for a lot of companies,” says another P-E player. “With every other source of capital drying up, it’s difficult not to be excited about the opportunities that are coming up.”
- Carlyle has about $20B available to invest in energy; Apollo Global (NYSE:APO) and Blackstone (NYSE:BX) have similar amounts.
Mon, Feb. 22, 8:47 AM
- In another blow to Carlyle Group's (NASDAQ:CG) efforts at expanding its asset management powers beyond private-equity, the company is shutting its Diversified Global Asset Management operation just two years after buying it.
- The business has less than $2B in fee-paying client AUM.
- "A challenging market made the business difficult to grow,” Carlyle COO Glenn Youngkin tells Bloomberg. “We are refocusing our investment solutions segment on areas where we see real momentum.”
- This closing comes on top of other hedge fund hiccups for Carlyle, including poor returns at Claren Road Asset Management, where assets have now dropped to just more than $1B from $8.5B in 2014.
- The closing of DGAM leaves Carlyle with two fund-of-funds managers - AlpInvest and Metropolitan Real Estate Equity Management. Youngkin notes AlpInvest's active funds gained 18% last year and 24% in 2014, and that's the kind of thing Carlyle wants to focus its attention on.
The Carlyle Group LP is a diversified multi-product global alternative asset management firm. It advises investment funds and other investment vehicles that invest across a range of industries, geographies, asset classes and investment strategies and seek to deliver attractive returns for its... More
Industry: Asset Management
Country: United States
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