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| 1 Comment
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.
Nov. 5, 2014, 7:54 AM| Comment!
Oct. 30, 2014, 11:14 AM
- It's a second day of post-earnings losses for Carlyle Group (CG -4.3%) as Bank of America throws in the towel on its Buy rating.
- Economic net income rose from a year ago and beat estimates thanks to gains in the private-equity unit as the company cashed in on some stakes, including the $3B sale of Beats Electronics to Apple.
- Earnings, however, fell in Carlyle's hedge fund, real assets, and funds-of-funds segments. Global Market Strategies - which includes hedge funds - had ENI of just $1M, down 88% from a year ago.
Oct. 29, 2014, 10:05 AM
- At issue, reports Reuters, are how net returns - also known as net IRR - are reported in private equity firms' marketing materials. Typically, net IRR deducts investors' fees and expenses, but P-E fees are not standard, and different investors pay different amounts.
- By including the general partner's money in the calculation - they don't pay any fees - the performance figures would be inflated, and the SEC is investigating whether this is being properly disclosed.
- The SEC has already been looking under the hood of the P-E industry - mostly regarding fees - but the emphasis into these performance figures signals a new phase in the probe.
- A Reuters review finds Blackstone (BX +0.2%), Carlyle Group (CG -0.3%) - for example - do not include money coming from general partners in their IRR calculations, but Apollo Global (APO +0.1%) does.
- ETFs: PSP, PEX
Oct. 29, 2014, 6:46 AM
Oct. 19, 2014, 10:08 AM
- Remember last summer's private-equity legal settlements which ensnared sector names like Carlyle Group (NASDAQ:CG), Blackstone (NYSE:BX), KKR, and the P-E arm of Goldman Sachs (NYSE:GS) for colluding to keep a lid on the prices of buyout targets? Needless to say, management didn't bear the burden of the settlement penalties, but neither did the shareholders. In the case of Carlyle at least, the $115M fine was shouldered by the investors in one of its buyout funds.
- Those investors include state and city workers and retirees from across the country, and chances are they were unaware they were responsible for these costs due to the highly secretive nature of the agreements made between P-E and the pension funds which invest in them.
- Disclosure "would cause substantial competitive harm," says a Carlyle spokesman. “This is an overreach on Carlyle’s part, and frankly it violates the spirit of the indemnification clause of our contract,” says NYC Comptroller Scott Stringer, who oversees three city pension funds invested in that particular Carlyle vehicle.
- Private-equity firms now manage $3.5T in assets, and pension funds have been among the more willing investors, with 10% of their assets - or $260B - in P-E. Yet the terms of their deals - including what they're paying to take part - are hidden from view despite open-records laws demanding just the opposite.
- “Hundreds of billions of public pension dollars have essentially been moved into secrecy accounts,” says former SEC lawyer Edward Siedle. "It’s very damning legal boilerplate that sums up the fact that they are the highest-risk, highest-fee products ever devised by Wall Street.”
- ETFs: PSP, PEX
Oct. 8, 2014, 3:22 PM
- Bank of America (BAC +0.8%) reportedly has agreed to provide inventory and working capital financing to the biggest oil refinery on the East Coast, replacing JPMorgan Chase (JPM +1.3%) with a revamped arrangement that excludes physical supplies.
- The agreement with Philadelphia Energy Solutions gives BofA's commodities business one of the biggest such financing arrangements in the U.S., but excludes the physical oil trading and logistics operations that were part of the JPM deal.
- PES, a joint venture of Carlyle Group (NASDAQ:CG) and Sunoco, had been seeking greater logistical flexibility that would allow it to take more control over its crude supply and product sales with a financier that would not compete in the trading space.
Oct. 6, 2014, 7:51 AM
- Typically, P-E companies raise money from investors in funds, and combine that capital with loans to acquire businesses. In what would be a major industry shift, firms like Blackstone (NYSE:BX) and Carlyle Group (NASDAQ:CG) are looking to put money to work directly in takeovers.
- It's a defensive move in response to sovereign wealth funds and pension funds that in recent years have hired their own staffs of bankers and private-equity honchos to make direct investments, rather than invest money in P-E funds. "Many have hired talented teams and are now much more concerned with the cost of active asset managers such as private-equity firms, which take a significant percentage of returns as fees and carry," says a business school professor.
- A possible model for the new approach would be last year's $23B purchase of Heinz by 3G Capital and Berkshire Hathaway. 3G didn't use a fund, but instead asked Berkshire to participate. Neither are now under pressure to sell at any pre-determined date.
Sep. 22, 2014, 9:55 AM
- PES Logistics Partners will have a 45% ownership in a business operating an oil-unloading system (from trains) installed at a Philadelphia refinery owned by Carlyle Group (CG -0.1%).
- The refinery - the largest on the East Coast - previously processed oil imported by ship from Africa and the North Sea, but the new setup moving oil from train cars allows it to source oil from less expensive domestic supplies.
- PES has a 10-year fee deal with the refinery, and expects to collect $118M in fees over the next year. It also has the right of refusal to buy a number of other assets involved in moving and storing crude around the refinery and several adjacent facilities.
- Not yet disclosed is how much Carlyle expects to raise from the offering.
Sep. 16, 2014, 12:37 PM
- Alternative asset managers aren't "one trick ponies," says Citigroup's William Katz, arguing the industry is far more diverse now than in the past and deal dynamics are way more sophisticated. He notes the companies have put less capital to work compared to past cycles and this should help "protect" IRRs.
- The overall group, he says, "screen quite inexpensively," and Blackstone (BX +0.6%), KKR (KKR), and Och-Ziff (OZM) remain his favorite names. The recent declines in Apollo Global (APO -1.1%) and Carlyle Group (CG +0.8%) make those two players enticing as well.
- The role call YTD isn't a pretty one, with only Blackstone in the green (barely), KKR down 7%, and the others lower by double digits.
Sep. 15, 2014, 1:30 PM
- Joining Carlyle's (CG -1.6%) Islamorada portfolio are the Postcard Inn Beach Resort and La Siesta Resort. The four properties in the portfolio will be grouped in the newly formed Islamorada Hotel Company and be managed by Trust Hospitality. The equity for the deals comes from Carlyle Realty Partners VII, a $2.34B U.S. real estate fund.
- Carlyle plans a total of $18M in renovations to the two newest properties.
- Source: Press Release
Sep. 8, 2014, 3:36 AM
- Carlyle Group (NASDAQ:CG) has closed its fourth Asia fund at $3.9B, taking the firm's total amount of assets managed by its Asia funds, including Japan, to $13.6B.
- PE firms have raised record amounts in recent years for Asia-focused funds, with TPG closing a $3.3B fund in May and KKR (NYSE:KKR) raising a $6B fund last year.
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