Play The Rise Of The Private Equity Managers With Carlyle Group
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.
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 »
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?
Wed, Feb. 17, 9:52 AM
- While both stock's are lower by about 45% since mid-April, The Carlyle Group (CG +6.2%) offers compelling long-term value, says analyst Michael Cyprys, while KKR's (KKR -0.2%) balance sheet could be a near-term risk to earnings.
- He upgrades Carlyle to Overweight with $20 price target (49% upside) and downgrades KKR to Equalweight with $14 price target (marginal upside).
- Positive catalysts for Carlyle include a $4B exit portfolio pipeline, a $4B investment deployment pipeline, the just-announced $200M buyback, and management's increased focus on cost control. The market is likely to give more value to the company's future earnings potential as deployment speeds up, says Cyprys.
- "We think the Street is mis-modeling KKR's balance sheet earnings, and we expect 1Q to be far more challenging than 4Q,” he says, expecting the company to report a loss of $1.51 per share vs. consensus of a $0.10 loss. He notes KKR's large public equity position (42% of funds vs. peers in the 11-27% range), along with negative credit and energy marks.
Wed, Feb. 10, 3:15 PM
- These MOUs are paid to take their capital and reap big returns doing deals, not try and support the stock price with share repurchases. “It doesn’t make much sense, obviously,” says UMass economics professor William Lazonick.
- Yet The Carlyle Group (CG +3.3%) today joined Apollo Global (APO -0.9%), KKR (KKR -5.2%), and Fortress Investment (FIG -1.7%) in launching sizable share repurchase programs, with Carlyle CEO David Rubenstein saying (earnings call transcript) none of his company's owners finds the current stock price "satisfactory or acceptable."
- Don't look for Blackstone (BX +1.9%) to join the crowd. “Limited partners believe that if you don’t invest in your own funds, you don’t show confidence or alignment,” said Stephen Schwarzman on his recent earnings call (transcript). "We always want to have a lot of money around." Just to be clear, Schwarzman has also been very vocal about how cheap he believes Blackstone shares are.
- The last word goes to Lazonick: “At least they’re not buying high, but that’s not relevant ... They should be trying to figure out how to invest better.”
- ETFs: PSP, PEX
Wed, Jan. 20, 8:07 AM
- Citing "uncertainties developed regarding the transaction," Symantec (NASDAQ:SYMC) and Carlyle (NASDAQ:CG) have amended the terms of Carlyle's purchase of Symantec's Veritas storage software unit to cut the purchase price from $8B to $7.4B, and double Veritas' offshore cash balance to $400M.
- Symantec will now be paid $6.6B in cash and left with a $400M equity interest in Veritas. After-tax cash proceeds are expected to total $5.3B, down from an original $6.3B.
- The deal is still expected to close on Jan. 29. The sale price cut follows a Nasdaq selloff, as well as November reports indicating banks had postponed marketing the debt Carlyle planned to use to finance the Veritas deal.
- Separately, Symantec now expects FQ3 revenue, op. margin, and EPS to be above the midpoints of the guidance ranges provided in its Nov. 5 FQ2 report. FQ3 results are due on Feb. 4.
- Symantec has dropped to $18.05 premarket, making new 52-week lows in the process.
Mon, Jan. 4, 9:56 AM
- "Given the aging vintage of the current economic cycle, we continue to become more selective/defensive across the asset manager vertical," says analyst Craig Siegenthaler, downgrading The Carlyle Group (CG -3.1%) to Neutral from Outperform with price target of $18.
- Siegenthaler views Carlyle as one of the most "offensive" alternative asset manager names thanks to its 1) large accrued carry balance, 2) high profit composition from performance fees, 3) a business weighing toward P-E and real assets.
- See also: Credit Suisse downgrades more asset managers (Jan. 4)
Dec. 10, 2015, 10:26 AM
- Outliers to the upside in private-equity today are KKR (KKR +3.8%) and Apollo Global (APO +3.9%) as Jefferies initiates coverage on three of the battered sector's names.
- KKR is started with a Buy and $20 price target - 27% upside to last night's close. Apollo is started with a Buy and $19 PT - 25% upside to last night's close.
- The Carlyle Group (CG +0.7%) is initiated with a Hold and $19 price target.
Dec. 8, 2015, 9:52 AM
- With the stock price charts of all three moving sharply down and to the right for several months, Bank of America pulls Buy ratings on Apollo Global (APO -3%), Blackstone (BX -2.6%), and Carlyle Group (CG -1.5%). All are downgraded to Neutral.
- Not completely giving up on the sector, BofA upgrades the equally beaten-down Ares Management to a Buy.
Nov. 3, 2015, 8:11 PM
Nov. 2, 2015, 3:14 PM
- Leading the way higher for the roughed-up sector are alternative players like Och-Ziff Capital (OZM +10.1%) and KKR (KKR +9.3%). There's also Blackstone (BX +4.3%), Fortress (FIG +3.2%), Oaktree (OAK +4.2%), and Carlyle Group (CG +7.4%).
- Traditional names like Manning and Napier (MN +11.7%), Affiliated (AMG +2.6%), Waddell & Reed (WDR +2.7%), Virtus Investment (VRTS +3.7%), and Legg Mason (LM +2.3%).
- Many of these names have reported Q3 already, and the results have mostly disappointed. On tap for tomorrow is Och-Ziff.
Jul. 7, 2015, 6:41 PM
- Bloomberg reports Symantec (NASDAQ:SYMC) is "nearing a deal" to sell its Veritas storage software unit (currently set to be spun off) to P-E firm Carlyle (NASDAQ:CG) for $7B-$8B. For reference, Symantec closed today with a $15.4B market cap.
- Deal terms are still being negotiated. Symantec hasn't been shy about its willingness to field offers for Veritas, which was acquired for $13B+ in 2005. Reuters reported in April tax concerns had hurt buyout interest.
- Symantec has risen to $23.40 AH. The company's Information Management ops had FY15 (ended in March) revenue of $2.56B (+1% Y/Y).
Mar. 6, 2015, 10:03 AM
Feb. 18, 2015, 8:12 AM
- It's "harvest" time at Carlyle Group (NASDAQ:CG), says Citi, upgrading to Buy from Neutral as the company is set to enter a robust period of cashing in on some investments.
- Shares +2.5% premarket
Jan. 6, 2015, 2:38 PM
- One of today's worst-performing sectors as oil tumbles below $48 per barrel is private-equity. It was late last year Blackstone's Steven Schwarzman told investors he was itching to buy into the dive in energy, a promise he made good on in the first session of this year. In general one would think the plunge is a good thing for the opportunistic types who manage these companies.
- In late December, it was estimated buyout firms had lost a combined $11.7B in 27 publicly traded oil producers since June, and that was with oil nearly $10 higher than it is today.
- ETFs: PSP, PEX
- Other individual names: KKR (KKR -2.1%), Fortress Investment (FIG -2.7%), Apollo Global (APO -3.5%), Oaktree (OAK -3.9%), The Carlyle Group (CG -2.8%), Ares Management (ARES -1.8%).
Dec. 4, 2014, 10:19 AM
- In private-equity, Blackstone (BX +1.4%) and KKR & Co. (KKR +0.9%) post gains after being initiated with Overweight ratings, while Carlyle Group (CG -1%) and Oaktree Capital (OAK -0.5%) are started at Equal Weight.
- Moving onto traditional asset managers, Invesco (IVZ -0.5%) is rated Overweight, while T. Rowe Price (TROW -0.3%), Legg Mason (LM -1.5%), Franklin Resources (BEN -0.9%), and BlackRock (BLK -0.2%) are all started at Equal Weight.
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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