Tue, Jun. 9, 11:31 AM
- Carlyle Group (NASDAQ:CG) is pitching clients about interest in a "core-plus" U.S. real estate strategy targeting returns of 9-11%, says co-founder David Rubenstein.
- Competitor Blackstone manages more than $5B in core-plus real estate after starting its offering in 2013, and believes the strategy could have $100B in AUM in a decade.
- Carlyle currently manages about $15B in real estate, with an "opportunistic strategy" targeting returns of 15-20%.
- Source: Bloomberg
Mon, Jun. 8, 8:04 AM
- A list of external managers used by the $305B retirement system includes giants like KKR, Carlyle Group (NASDAQ:CG), and Blackstone (NYSE:BX).
- The industry bellwether today will make public plans to reduce to 100 from 212, the direct relationships it has with private-equity, real estate, and other external funds, reports the WSJ.
- The move - coming under the leadership of CIO Ted Eliopoulos who took the reins last year - won't necessarily change Calpers' investment strategy nor the amount of assets managed internally vs. externally. The 100 left will just get a bigger pool of funds to manage, though they likely will be pushed to lower fees.
- As recently as 2007, Calpers had about 300 external managers.
Mon, Jun. 1, 4:56 PM
- Carlyle Group (NASDAQ:CG) announces a 7M unit secondary offering, with proceeds to be used to buy an equivalent number of outstanding Carlyle Holdings partnership units from existing unit holders, including certain of its directors and executives.
- Carlyle will retain no proceeds from the offering.
- Source: Press Release
Tue, May 26, 8:23 AM| Tue, May 26, 8:23 AM | Comment!
Mon, May 11, 10:45 AM
- "We have a deep bench of talent," says a Carlyle Group (CG +0.1%) spokesman, after Mike Cavanqgh's quick exit as the company's co-president to become CFO at Comcast.
- Cavanagh only a little more than a year ago, reminds Dan Primack, stunned Wall Street by exiting JPMorgan (where he was considered the heir apparent to Jamie Dimon) to take the newly-created role at Carlyle. For now, it appears Carlyle has no plans to replace him, and Glenn Youngkin will move forward as the sole president.
- With Cavanagh's exit, says Primack, two of the group of five expected to be the next generation of Carlyle's leadership - and for whom Carlyle created an entire financial structure to retain them - have now left (CFO Adena Friedman exited in May to join Nasdaq).
- It's more likely than not these are one-offs - Friedman returning to Nasdaq and Cavanagh maybe preferring life at a giant company - rather than structural issues at the P-E firm, says Primack, but nevertheless, things aren't going as planned for Carlyle's co-founders.
- Previously: Comcast names Cavanagh to CFO post (May 11)
Wed, Apr. 29, 7:52 AM
- Q1 economic net income of $273M down 13% from a year ago. Distributable earnings of $148M down 19%. A French tax judgement negatively impacted ENI by $34M and distributable earnings by $80M. The judgement is being appealed.
- Q1 funds raised of $4.4B. Total AUM of $192.7B. Fee-earning AUM of $129.4B. Equity invested during quarter of $1.5B.
- Realized proceeds during quarter of $4.6B. Carry fund returns of 6% for quarter, 15% over trailing 12 months.
- Conference call at 8:30 ET
- Previously: Carlyle beats by $0.21, beats on revenue (April 29)
- CG flat premarket
Wed, Apr. 29, 6:37 AM
Mon, Apr. 27, 4:49 PM
- Upon completion of the offering, Carlyle (NASDAQ:CG) will continue to hold 20.775M partnership units in CoreSite's (NYSE:COR) operating partnership - translating into a stake of 43.9% of the common stock (or 42.5% if the underwriters exercise their 675K share greenshoe).
- CoreSite will receive no proceeds from the offering.
- Source: Press Release
- CoreSite is higher by 28% YTD, 63% Y/Y, and 200% since the IPO 4+ years ago. Bravo Carlyle.
Thu, Apr. 16, 4:37 AM
- Carlyle Group (NASDAQ:CG) has enlisted Mike Duke, former Chief Executive of Wal-Mart, to the executive team the asset management firm taps for advice on consumer products and retail deals.
- The position as a so-called operating executive will allow Duke to still continue as a member of Wal-Mart's board, where he has served since his retirement in early 2014 after five years in the top job.
Mon, Apr. 6, 5:39 AM
- Chinese online game developer Shanda Games (NASDAQ:GAME) has agreed to be taken private by Capitalhold in a deal worth $1.9B.
- Capitalhold will pay $3.55 per ordinary share and $7.10 per ADS for Shanda, a premium of 46.5% to Shanda's 30-day average trading price.
- The deal brings to an end a year-long saga during which Shanda Games was courted by its parent Shanda Interactive, backed by Carlyle Group (NASDAQ:CG) and Fountainvest Partners.
- Previously: Shanda M&A consortium gets more members (March 16)
- Previously: Carlyle, Fountainvest and others pull $1.9B bid for Shanda Games (Sept. 3, 2014)
Mon, Mar. 30, 8:09 AM
- David Swenson - the investment manager of the Yale endowment - ushered in the private-equity era nearly three decades ago with his success in allocating part of the portfolio to "alternative" assets, writes Andy Kessler. The so-called Swenson model has been widely copied since, and last year 765 P-E funds raised $266B, up 11% from 2013.
- Private-equity, however, has peaked, argues Kessler, noting a number of reasons, among them the ending of the three-decade-plus decline in interest rates, a slowdown in bank lending for the leveraged deals upon which P-E runs, and the threat of tax reform in which interest rate deductions for debt could be targeted.
- Most importantly though, says Kessler, P-E is an economic growth killer. Buying out a drugstore chain and loading it with debt isn't investing in the productivity of the economy. Instead, it does just the opposite - generating wealth for the endowments and pension funds invested, but destroying it for the economy.
- Kessler throws in one more reason P-E is done: The industry is fresh out of big targets. The bust of Energy Future Future holdings means utilities are out, and what's left in food following the Kraft purchase? Tech? Forget it, as the money required to service debt squeezes out what's needed for R&D.
- Among those reading this morning: BX, KKR, CG, APO, FIG.
- ETFs: PSP, PEX
Fri, Mar. 27, 6:57 AM
- At the prompting of at least one BNY Mellon (NYSE:BK) director, recruiting firm Spencer Stuart firm has come up with a list of potential candidates to replace embattled CEO Gerald Hassell.
- Gregory Fleming, who runs wealth and investment management at Morgan Stanley (NYSE:MS), has been contacted about the position, Reuters reports.
- Other potential candidates include Mary Erdoes, who runs JPMorgan's (NYSE:JPM) asset management business and Michael Cavanagh, a former JPMorgan executive who is now COO at P-E firm Carlyle (NASDAQ:CG).
- Previously: Marcato demands new leadership at BNY Mellon (Mar. 10 2015)
Thu, Mar. 26, 11:37 AM
- Private-equity buyouts of $17.14B YTD are at their lowest level since 2012 as banks - with regulators looking over their shoulders - cut back on the amount of debt they'll extend for takeovers. Leveraged loan volume this year of $26.5B is 82% less than the same time frame in 2014, and the lowest since 2009.
- Fewer and smaller deals, along with less leverage means less risk, but also means lower returns for buyout firms. It also means lower prices for sellers.
- “The limitation on leverage has taken away some buying power and in some cases, created a gap between sellers’ expectations and the price that private-equity firms can justify paying,” says Carlyle Group's (CG -1%) Pete Clare.
- According to S&P Capital IQ, 21% of P-E deals this year have been financed with leverage at or above levels deemed risky by regulators; that's down from 35% in Q4 and 60% in Q3.
- Along with Carlyle, Blackstone (BX -0.9%) in its annual report warned leverage restrictions could hurt its business. Apollo Global (APO -1.7%) and KKR (KKR -1.2%) included similar language in both their 2013 and 2014 filings.
- Source: WSJ
- ETFs: PSP, PEX
Thu, Mar. 19, 6:55 PM
- "This is one of the best periods, if not the best, to invest in global energy,” says Carlyle Group's (NASDAQ:CG) Marcel van Poecke after the P-E firm finished raising $2.5B for a new global energy fund which will increase its war chest for energy deals to more than $10B.
- Van Poecke expects a buyer’s market to emerge outside North America in H2 of this year as executives accept lower valuations for their businesses; the way he sees it, P-E firms may have an advantage in an environment where most of the large oil companies say they are concentrating on cutting spending and maintaining dividends rather than seeking deals.
- Carlyle joins other P-E firms, including Blackstone, KKR and Apollo Global Management, in raising extra funds for energy deals as oil and natural gas companies struggle to stay afloat.
Fri, Mar. 6, 10:03 AM
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.
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