Mon, Mar. 2, 11:52 AM
- The soon-to-be new owners of Canadian rater DBRS, Carlyle Group (CG +0.2%) and Warburg Pincus hope to double or triple the company's market share over the next five to ten years. DBRS currently has 2% of the lucrative ratings market dominated by Standard & Poor's (MHFI +0.4%), Moody's (MCO -0.2%), and Fitch - the three combine for 95% market share, about the same as prior to the financial crisis.
- A group led by Carlyle and Warburg hope expect to close on their more than $500M purchase of DBRS early this week.
- Despite calls from regulators, investors, and critics in general, upstarts in ratings have struggled to make any headway against the Big Three. One notable obstacle: Many investors have bylaws requiring paper they buy to be rated by either S&P or Moody's.
- Instead of challenging the group on its strongest turf - municipal and U.S. corporate debt - DBRS will look to for opportunity in Europe and emerging markets.
Sun, Feb. 22, 8:34 PM
- Count Carlyle Group's (NASDAQ:CG) Claren Road Asset Management among those who had checked into the hedge fund hotels otherwise known as Fannie Mae and Freddie Mac. An unfavorable court ruling sent their stock prices plunging in October, and Claren Road - which had put more than 10% of its assets into the GSEs - lost 9.7% that month. For all 2014, the fund lost 9.9%.
- Investors pulled about $2.5B from the fund in Q4, reports MarketWatch, and AUM stood at $5.2B at year-end vs. $8.5B three months earlier. Claren Road has trimmed its holdings of Frannie, and instituted a policy limiting to 5% trades in noninvestment grade securities.
- Hedge funds have mostly been a nice new line of work at P-E firms as they allow the companies to add billions in assets subject to management and performance fees. The deals market can be a bumpy one, and the hedge funds theoretically help smooth quarterly earnings for the firms.
Wed, Feb. 18, 8:12 AM
Wed, Feb. 11, 8:06 AM
- Q4 economic net income of $181M down from $562M a year ago. Distributable earnings of $311M down from $400M. Net performance fees of $138M vs. $578M. Realized performance fees of $264M vs. $355M.
- Total AUM of $194.5B vs. $188.8B a year ago. Fee-earning AUM of $135.6M vs. $139.9M.
- Carry fund valuations up 1% during Q4, up 15% for the year. The public portfolio rose 7% during the Q, the private fell 1%. Excluding the impact of energy-related funds, public would have been higher by 6%, private by 19%.
- Conference call at 8:30 ET
- Previously: Carlyle beats by $0.12, beats on revenue (Feb. 11)
- CG flat premarket
Wed, Feb. 11, 7:19 AM
Wed, Feb. 11, 6:34 AM
Tue, Jan. 27, 10:35 AM
- “Challenges in energy and credit are likely to damp results,” says BofA's Mike Carrier, who expects the strongest quarter at Blackstone (BX -0.8%) and the weakest at Carlyle Group (CG -0.8%).
- A Bloomberg survey of analysts finds them seeing a 73% Y/Y profit decline at Carlyle, 63% at Apollo Global (APO +0.2%), 60% at KKR (KKR -1.4%), and Blackstone - the most diversified - at just 32%.
- The P-E industry is entering the later stages of a selling cycle which began in 2012 and has made investors a fortune, but now is under pressure to put a whopping $1.2T to work. It should find ample opportunity in the energy sector.
- ETFs: PSP, PEX
Fri, Jan. 9, 12:03 PM
- Carlyle Group's (CG -1.4%) carry fund valuations rose 1% in Q4 and 15% over the lagging twelve month period, not bad, considering a drop of 17% and 12%, respectively in its energy funds. In addition, natural resources funds fell 8% for the quarter and 13% for twelve months.
- Corporate private equity funds rose 7% for the quarter and 23% over the lagging twelve months.
- Source: Press Release
Tue, Jan. 6, 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. 24, 2014, 7:09 AM| Comment!
Dec. 22, 2014, 9:49 AM
- More than a dozen buyout firms - Blackstone (NYSE:BX), Apollo Global (NYSE:APO), and Carlyle Group (NASDAQ:CG) among them - have lost a combined $11.7B in 27 publicly traded oil producers since June, according to Bloomberg.
- Apollo - the largest investor in EP Energy, for instance - has $5B invested in energy debt and equity. Carlyle has 10% of its $203B in assets in the industry, and Blackstone is the 2nd-largest shareholder in Kosmos Energy, and backs drilling projects off Ghana's coast and the Gulf of Mexico.
- "It could be worse from here," said Greg Beard, who oversees Apollo's energy investments, at his firm's investor day on Dec. 11. "When the market has been in excess like it is now, you see price declines. With a change in the stance of OPEC from one of price protection to the protecting of market share, we're in excess for at least the next 12 months."
- Previously: Blackstone's Schwarzman licking his chops over energy (Dec. 12, 2014)
Dec. 22, 2014, 7:24 AM
- Walter Schroeder, DBRS' founder and controllig shareholder will remain an important investor in the company, and he says Canada will remain the core of DBRS' operations, but the P-E firms' investment will be a boon to expansion efforts in the U.S. and Europe.
- Terms of Carlyle's (NASDAQ:CG) investment were not disclosed.
- Source: Press Release
Dec. 15, 2014, 10:56 AM
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.
Nov. 24, 2014, 8:07 AM
- Joining some of its P-E brethren in seeking more permanent capital, Carlyle Group (NASDAQ:CG) is raising up to $5B for a fund which could hold stakes in companies for as long as 20 years, reports Bloomberg.
- Previously: Blackstone reportedly pitching "core" private equity fund
- As with the Blackstone offering, this fund will also charge lower fees than the typical Carlyle vehicle. David Rubenstein: “After the great recession, a lot of investors said we want to bargain with you and said we would like to change the fee structure. We have changed.”
- This new fund is targeting a 1% management fee and15% of the profits vs. 1.5% and 20% for a recent Carlyle offering.
Nov. 12, 2014, 4:38 AM
- Axalta Coating Systems (NYSE:AXTA), which debuts today on the NYSE under the symbol "AXTA", has raised about $975M for its IPO after its enlarged offering was priced at $19.50 per share (the midpoint of its expected price range).
- At the IPO price, the company is valued at $4.5B, based on outstanding common stock of about 229M.
- Axalta, which was bought by Carlyle (NASDAQ:CG) in February 2013 for $4.9B, makes liquid and powder coatings for the automotive and transportation industries.
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