Jump to content

The Carlyle Group: Difference between revisions

From Wikipedia, the free encyclopedia
Content deleted Content added
No edit summary
No edit summary
Line 25: Line 25:


==Current portfolio and major acquisitions==
==Current portfolio and major acquisitions==
Though known for its expertise in aerospace and defense, more than thirty percent of Carlyle’s invested assets are in the telecommunications and media sector. Noted portfolio companies are Dex Media, the former directories business of [[Qwest]] Communications; [[Willcom]], a Japanese wireless company; [[Casema]], a Dutch cable company; and Insight Communications, the ninth largest cable company in the U.S. The Carlyle Group is a also a major investor in [[USIS]], which is the privatized arm of the United States Office of Personnel Management's Office of Federal Investigations.
Though known for its expertise in aerospace and defense, more than thirty percent of Carlyle’s invested assets are in the telecommunications and media sector. Noted portfolio companies are Dex Media, the former directories business of [[Qwest]] Communications; [[Willcom]], a Japanese wireless company; [[Casema]], a Dutch cable company; and Insight Communications, the ninth largest cable company in the U.S. The Carlyle Group is a also a major investor in [[USIS]], which is the privatized arm of the United States [[Office of Personnel Management]]'s Office of Federal Investigations.


[[Brand-name]] companies that Carlyle owns include: Dunkin' Brands, which owns [[Dunkin' Donuts]] and [[Baskin-Robbins]], and dental hygiene company [[Water Pik]]. Carlyle also recently took rental car company [[Hertz]] public.
[[Brand-name]] companies that Carlyle owns include: Dunkin' Brands, which owns [[Dunkin' Donuts]] and [[Baskin-Robbins]], and dental hygiene company [[Water Pik]]. Carlyle also recently took rental car company [[Hertz]] public.

Revision as of 16:51, 2 February 2007

The Carlyle Group
Company typePrivate Partnership
IndustryFinancial Services
Founded1987
HeadquartersWashington, D.C.
Key people
Louis V. Gerstner, Jr., Chairman
William E. Conway, Jr., Founder
Daniel A. D'Aniello, Founder
David M. Rubenstein, Founder
John F. Harris, CFO
ProductsManagement buyouts
Real estate
Leveraged finance
Venture and growth capital
RevenueUndisclosed to public
1,572,500,000 United States dollar (2022) Edit this on Wikidata
1,225,000,000 United States dollar (2022) Edit this on Wikidata
Total assets21,250,400,000 United States dollar (2021) Edit this on Wikidata
Number of employees
650
Websitewww.carlyle.com

The Carlyle Group is a Washington, D.C. based global private equity investment firm with more than $51.8 billion of equity capital under management.[1] The firm operates four fund families, focusing on leveraged buyouts, venture & growth capital, real estate and leveraged finance investments. The firm employs more than 395 investment professionals in 16 countries with several offices in North America, Europe and Asia; its portfolio companies employ 200,000 people worldwide. The academic qualifications of its staff include 160 MBAs, 28 JDs and 14 Ph.D/MDs from many of the world’s most prestigious universities. Carlyle has over 1000 investors in 57 countries.

Origin

Carlyle was founded in 1987 by William E. Conway, Jr., Daniel A. D'Aniello, Stephen L. Norris, Greg A. Rosenbaum, and David M. Rubenstein[2]. Rosenbaum left in 1987[3]; Norris left in 1995[4]. The three remaining founders are reported to collectively own around a 50% interest in the group's general partnership. The California Public Employees Retirement System (or CalPERS) is the only institution which owns a stake in the partnership, holding 5.5% of Carlyle.

As they wanted the firm to outlive them, the founders named the firm after the upper east side hotel in New York City, "The Carlyle," where they first met to discuss the idea. Carlyle's current chairman is Lou Gerstner, former chairman and CEO of IBM.

Specialization

Carlyle deals in the following industries: Aerospace & Defense, Automotive, Consumer & Retail, Energy & Power, Healthcare, Industrial, Real Estate, Technology & Business Services, Telecommunications & Media, and Transportation. The Carlyle Group's investments are focused on East Asia, Europe and North America, with most investment money coming from the United States (65%), Europe (25%), Asia (6%), Latin America, and the Middle East. Defense investments represent about 1% of the group's current portfolio — though this translates, for example, into a 33.8% ownership of QinetiQ, the UK's recently privatized defence company.

Current portfolio and major acquisitions

Though known for its expertise in aerospace and defense, more than thirty percent of Carlyle’s invested assets are in the telecommunications and media sector. Noted portfolio companies are Dex Media, the former directories business of Qwest Communications; Willcom, a Japanese wireless company; Casema, a Dutch cable company; and Insight Communications, the ninth largest cable company in the U.S. The Carlyle Group is a also a major investor in USIS, which is the privatized arm of the United States Office of Personnel Management's Office of Federal Investigations.

Brand-name companies that Carlyle owns include: Dunkin' Brands, which owns Dunkin' Donuts and Baskin-Robbins, and dental hygiene company Water Pik. Carlyle also recently took rental car company Hertz public.

Controversy

Critics of the Carlyle Group frequently note its connections to various political figures. Some of the sectors and companies in which it invests are highly sensitive to political activity; indeed, its actions may be viewed as a form of political arbitrage. This may create conflicts of interest when political decision makers have their own personal wealth [1] linked to such investments. Carlyle is the largest private equity firm located in Washington, D.C., its corporate headquarters are located on Pennsylvania Avenue.

Critics refer to Carlyle as a private military contractor, because it owns controlling or partial interests in several military contractors. For example, it used to own United Defense Industries, which was developing the Crusader artillery project. This project was funded in eight consecutive Clinton budgets but was cancelled soon after Bush became president, which eliminated the remaining $9 billion of the original $11 billion contract. A much smaller contract was awarded to United Defense to capture technologies developed during the eight years of development.

In the book House of Bush, House of Saud, author Craig Unger states that Saudi Arabian interests have given $1.4 billion to firms connected to the Bush family. Nearly 85% of the 1.4 billion, about 1.18 billion, refers to Saudi Arabian government contracts awarded to defense contractor BDM in the early to mid 1990s. Carlyle, however, sold its interest in BDM before former President George H. W. Bush joined as an advisor.

Former President George H.W. Bush retired from Carlyle in October 2003. George W. Bush served on the Board of Directors of early Carlyle acquisition Caterair. Bush left the board in 1992 to run for Governor of Texas.

The Saudi Arabian relatives of Osama bin Laden were also investors in Carlyle until October 2001 when the family sold its $2.02 million investment back to the firm in light of the public controversy surrounding bin Laden’s family after September 11. The bin Laden family has publicly disowned the al-Qaeda leader, but privately some members of the family have kept in contact with him.[citation needed] Osama bin Laden has no economic interest in Saudi Binladin Group (SBG), whose investments were in part managed by the Carlyle Group until the arrangement was terminated by mutual consent.

Notable current and former employees and affiliated persons

Business

Politics and public service

Other

See also

References

  1. ^ Carlyle Group website http://www.carlyle.com/eng/company/l3-company732.html
  2. ^ David A. Vise, "Area Merchant Banking Firm Formed," Washington Post, Oct. 5, 1987, F33.
  3. ^ Paul Farhi, "Chi-Chi's Bid Won D.C. Investment Firm Wall Street's Attention," Washington Post, June 6, 1988, F1.
  4. ^ John Mintz, "Founder Going Beyond the Carlyle Group," Washington Post, Jan. 9, 1995, F9.

Further reading

External links

Criticism