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The Carlyle Group (CG)

  • 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.
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  • 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.
    • Prospectus
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  • 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
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  • 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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  • Sep. 3, 2014, 6:44 AM
    • Carlyle Group (NASDAQ:CG) and Fountainvest Partners have pulled out of a consortium backing a $1.9B bid to purchase Shanda Games (NASDAQ:GAME). Perfect World (NASDAQ:PWRD) and private equity firm Primavera Capital have also exited the consortium.
    • Shanda Interactive Entertainment and an affiliate of Primavera, which together held 76.2% of Shanda, in January had offered $6.90 per ADS to buy the company, valuing it at $1.9B.
    • Fountainvest joined the Shanda consortium in April, while Carlyle joined in May.
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  • Sep. 3, 2014, 3:16 AM
    • JPMorgan (NYSE:JPM) is in talks to sell its oil-supply agreement with Philadelphia Energy Solutions to Bank of America (NYSE:BAC).
    • Operated as a joint venture between Sunoco and the Carlyle Group (NASDAQ:CG), Philadelphia Energy Solutions is one of the largest refineries in the country, processing 330K barrels of crude a day.
    • Under the terms of the current agreement, JPMorgan supplies the refinery with crude oil and credit and receives refined fuel products that it can trade.
  • Sep. 2, 2014, 3:52 AM
    • Despite Akzo Nobel (OTCQX:AKZOY) CEO Ton Buechner's cost cutting agenda, the chief exec is being singled out for a deal to buy Axalta Coating Systems for more than $7B.
    • Bloomberg reports that the company has not yet indicated if it will pursue the deal.
    • Carlyle Group (NASDAQ:CG) purchased vehicle-coatings company Axalta from Dupont for $4.9B in February 2013 and filed for its IPO last month.
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  • Sep. 1, 2014, 2:42 AM
    • Carlyle Group (NASDAQ:CG) is now the last to settle allegations against the world’s largest private equity groups, which previously accused the firms of conspiring to fix the prices of LBOs.
    • Although Carlyle has now agreed to pay $115M, it still denies wrongdoing and does not regard the settlement as an admission of guilt.
    • The decision follows similar settlements from the Blackstone Group (NYSE:BX), Goldman Sachs (NYSE:GS), KKR (NYSE:KKR), Bain Capital, Silver Lake Partners and TPG Capital, which were all accused of conspiring not to jump each others' deals.
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  • Aug. 27, 2014, 4:32 AM
    • Carlyle Group (NASDAQ:CG) is said to be in advanced talks with China's largest developer, China Vanke (OTC:CVKEY), to buy stakes in nine of its shopping malls.
    • The purchase would give Carlyle access to China's commercial real estate market and a non-binding memorandum of understanding could be signed as early as tomorrow.
    • Sources say the deal could fetch between 6B-7B yuan ($976M-$1.1B) or even be valued at up to 10B yuan.
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  • Aug. 21, 2014, 1:50 AM
    • After reports of an IPO surfaced last week, Carlyle Group (NASDAQ:CG) has now filed for an initial public offering of common stock for Axalta Coating Systems which could raise as much as $1B.
    • Carlyle Group purchased the company from Dupont only a year and a half ago.
    • Axalta makes liquid and powder coatings for the transportation industry and does business in more than 130 countries.
    • Previously: Carlyle considering Axalta IPO
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  • Aug. 14, 2014, 3:10 AM
    • Carlyle Group (NASDAQ:CG) is considering an IPO for Axalta Coating Systems, only a year and a half after it purchased the company from Dupont for $4.9B.
    • The private-equity group has already given lead roles to Citigroup and Goldman Sachs for the potential IPO which could raise as much as $1B.
    • Axalta makes liquid and powder coatings for the automotive and transportation industries.
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  • Aug. 11, 2014, 4:23 PM
    • As tipped off a couple of weeks back, JPMorgan's (JPM) long-awaited sale of about half of its stake in its P-E arm - One Equity Partners - has been agreed upon. The buyers are Carlyle Group's (NASDAQ:CG) AlpInvest Partners and Lexington Partners.
    • Terms were not disclosed, but the deal - expected to close by y ear-end -reportedly values the companies JPMorgan is selling at about $2B, and the bank will retain ownership of about half of One Equity's nearly 30 companies. The transaction isn't expected to have a material impact on The Bank of Dimon's earnings.
    • It was a little over a year ago when JPMorgan said the time had come to jettison One Equity amid less-than-stellar returns and an uncertain regulatory environment. According to Dan Primack, the bank wanted to sell the entire portfolio, but it was too large for the market to absorb at the current time.
    • Press release
    • Previously: WSJ: J.P. Morgan nears deal for One Equity Partners buyout arm
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  • Jul. 30, 2014, 7:30 AM
    • A look at the "Carlyle (NASDAQ:CG) Engine" finds 1) $7.4B of funds raised in Q2, bringing the YTD total to $12.9B, and the last 12 month's total to $23.1B; 2) Equity Invested of $2.4B brings the total YTD to $4.5B, and the last 12 month's total to $8.6B; 3) Realized Proceeds of $6.5B brings the YTD total to $9.5B, and the last 12 month's total to $18.9B; 4) Carry Fund Returns of 5% brings the years total to 11%, and the last 12 month's total to 20%.
    • Q2 economic net income of $236.6M or $0.73 per share compares to $123.2M and $0.39 one year ago.
    • Conference call at 8:30 ET
    • Previously: Carlyle misses by $0.01, beats on revenue
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  • Jul. 30, 2014, 6:33 AM
    • Carlyle (NASDAQ:CG): Q2 EPS of $0.73 misses by $0.01.
    • Revenue of $900M (+77.2% Y/Y) beats by $107.65M.
    • Press Release
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Company Description
The Carlyle Group L P is a diversified multi-product asset management firm. The Company operates its business across four segments; Corporate Private Equity; Global Market Strategies; Real Assets; and Solutions.
Sector: Financial
Country: United States