The Carlyle Group is a private equity, alternative asset management, and financial services company based in the United States of America. In addition to private equity and real estate, the company focuses on private finance.
The firm was founded by William E. Conway Jr. in 1987. For the first time in the company’s history, Carlyle’s stock was traded publicly in May 2012.
The corporate private equity arm of Carlyle Group has been one of the major investors in leveraged buyouts throughout the decade 2004–2014. This investment group includes Booz Allen Hamilton and PA Consulting, Dex Media and Dunkin’ Brands as well as Getty Images and Freescale Semiconductor. Carlyle has also invested in Hertz, Kinder Morgan, Nielsen, and 1E.
Founded in 1987 by five partners with experience in finance and government, Carlyle is a boutique investment banking firm with a focus on middle-market and small-cap companies. The Carlyle Hotel in New York City served as the inspiration for the name of the new investment company founded by Norris and Rubenstein.
Leveraged buyouts and venture capital are two of the many tactics used by private equity firms to acquire equity stakes in businesses from institutional investors or high net worth individuals (HNWI). Long-term investment horizons of five to seven years are usual for private equity companies. The Carlyle group ventured into leveraged buyouts after an unsuccessful takeover bid for Chi Chi’s in the late 1980s, whereinafter they raised cash deal-by-deal.
Through either the sale of the business or an initial public offering (IPO), a private equity firm aims to benefit from the acquisition of an equity stake in a company (IPO). They typically collaborate with other private equity companies to generate funds and lower their risk when substantial investments are needed. A lot of companies specialize in one or a few specific sectors or investing techniques.
T. Rowe Price, Alex. Brown & Sons, First Interstate Equities, and the Richard King Mellon family all contributed five million dollars to the founding of Carlyle. Founded in 1990, the firm’s initial buyout fund attracted a hundred million in investor commitments. Additionally, Carlyle advised Prince Al-Waleed bin Talal of the Saudi royal family on a five hundred million dollar investment in Citigroup in 1991.
As a result, Carlyle gained a reputation for purchasing defense-related industries. The Carlyle Group finalized the purchase of General Dynamics Corporation’s Electronics section, which it went on to rename as GDE Systems in 1992. In October 1994, Carlyle would sell the company to Tracor. It was in 1993 that Carlyle purchased Magnavox Electronic Systems, Magnavox’s military communications, and electronic-warfare systems business. In 1995, Carlyle sold Magnavox to Hughes Aircraft Company for over three hundred million dollars.
Through a joint venture with Northrop Grumman, Carlyle has also invested in Vought Aviation. In October 1997, Carlyle acquired United Military Industries, making it the company’s most significant investment in the defense business. Carlyle’s investment in United Défense, at USD 850 million, was its biggest to date. After the IPO of United Defense in December 2001, Carlyle sold all of its remaining shares of stock in April 2004. Carlyle has invested less in the military sector in recent years.
HOW THE CARLYLE GROUP IS MANAGED
The firm is organized into four business segments: [ A.] Corporate Private Equity, wherein the primary course of business is the management of Carlyle’s family of private equity funds investing primarily in leveraged buyout and growth capital transactions through a range of geographically focused investment funds; [B.] Real Assets in order to deal with funds that pursue investments in real estate, infrastructure, and energy, and renewable resources; [C.] Global Credit for the management of funds that pursue investments in distressed & special situations, direct lending, energy credit, loans & structured credit, and opportunistic credit; and [D.] Investment Solutions where the group is primarily centered around funds that invest in private equity and real estate fund of funds, co-investment, and secondaries.
Investment funds in Carlyle’s Corporate Private Equity division concentrate on certain geographic or industrial sectors, such as leveraged buyout and growth capital. Aerospace, military & government services, consumer and retail, energy, financial services, health care, industrial, real estate and technology and business services, telecommunications, and media are some of the sectors Carlyle invests in.
Fifty funds are advised by the Carlyle Global Credit sector on distressed and unusual circumstances, direct lending, energy credit, loans, and structured credits, and opportunistic credit investment possibilities. Carlyle Global Credit As of March 31, 2018, the Global Credit division has about thirty billion dollars in AUM.
Carlyle’s Investment Solutions segment advises global private equity (AlpInvest Partners) and real estate (Metropolitan) fund of funds programs and related co-investment and secondary activities across two hundred fund vehicles. The Investment Solutions segment had about USD 49 billion AUM as of March 31, 2018.
SUBSIDIARIES OF THE CARLYLE GROUP
Since Carlyle’s acquisition of AlpInvest in 2011 and integration of the firm, including its top fund of funds, Carlyle has dramatically expanded its worldwide asset management business.
It is AlpInvest’s goal to invest throughout the whole private equity spectrum, from major buyouts to middle-market buyouts to venture capital and growth capital. With offices in New York, Amsterdam, and Hong Kong employing over eighty investment experts, AlpInvest is one of the world’s largest alternative asset management firms. According to AlpInvest Partners’ March 31, 2018, financial statements, the company has approximately EUR thirty-eight billion under management and has invested with more than two hundred other private equity companies. Stichting Pensioenfonds ABP and Stichting Pensioenfonds Zorg en Welzijn (PFZW), the world’s biggest pension funds, have relied on AlpInvest since 2000 for their private equity investments, both of which are domiciled in the Netherlands.
Multi-manager real estate funds and strategies are available to investors via Carlyle’s real estate fund of funds business, Metropolitan, which has over eighty fund managers throughout the United States, Europe, and Asia, and Latin America. Real estate investments in the United States, non-U.S. countries, and the rest of the world are handled by Metropolitan.
CARLYLE CAPITAL CORPORATION
Founded in August 2006 to invest in U.S. mortgage-backed securities, Carlyle Capital Corporation defaulted on about sixteen billion in debt as the worldwide credit crunch brought on by the subprime mortgage crisis worsens for leveraged investors. As a result of its high debt, the Carlyle affiliate in Guernsey anticipated that its creditors would take the company’s remaining assets. Several of Carlyle’s lenders made margin calls or declared Carlyle in default on its debts as a result of mortgage market tremors. March 11, 2008, the Federal Reserve authorized Wall Street’s principal dealers to deposit mortgage-backed securities as collateral for loans of up to two hundred billion in higher-grade, U.S. government-backed securities in reaction to the Carlyle margin calls and other similar occurrences in credit markets.
Class A shareholders of Carlyle Capital voted overwhelmingly on March 16, 2008, to allow the company to file a petition under Guernsey’s Companies Law (1994) for a ‘compulsory winding-up procedure,’ which would allow the court-appointed liquidator to liquidate the company’s remaining assets. Carlyle Capital’s failure is said to have resulted in ‘minimal financial damages’ for the Carlyle Group.
CS INVESTMENT HOLDINGS, LLC
CS Investment Holdings, LLC is incorporated in the state of Delaware. For financial reporting, their fiscal year ends on December 31st. The entity retains its principal office in Chicago, Illinois, however. The company was registered with the SEC on 12th March 2020, wherein it receives its process service via mail and phone.
THE CARLYLE GROUP 1987, L.P
The Carlyle Group 1987, L.P filed its incorporation certification on 30th April 1987, being eligible for Delaware-based jurisdiction. The Corporation is, however, headquartered in Washington instead. The Department of State is therefore supposed to mail Process Service to the entity in case they ever receive Process Service on their behalf, although Process Service may also be accepted by a -principal officer of the company. Additionally, The Carlyle Group 1987, L.P retains The Corporation Trust Company as its registered agent for acceptance of Process Service.
The Corporation has been typified as a generally limited partnership corporation. The most frequent sort of partnership is a general partnership. It describes a partnership in which each partner has a role to play in the day-to-day operations of the company. It will be up to each partner to make business choices and even to legally tie the firm to contracts.
Unless otherwise indicated, the liabilities, contributions, and duties of the partners are usually equal.. An agreement between partners usually specifies who has what authority and obligations. The company’s records will show a separate partnership account for each of the partners.
In a limited partnership, one or more partners are not engaged in the day-to-day operations of the company. For all limited partners, commonly termed as ‘silent partners,’ the amount of their responsibility is restricted to the cash they provide. Nevertheless, the limited partners may not have any control over the corporation, such as with the ability to withdraw money from the company.
At a minimum, one general partner will be responsible for running the day-to-day operations of the firm in a limited partnership. In certain cases, a general partner might inject money into a business. In contrast to a limited partner, a general partner may indeed be held personally accountable for the company’s obligations. In order to settle the company’s obligations, only the personal assets of the general partner (together with the company’s assets) may be used.
Real estate is a popular use for a limited partnership. So long as there is at least one general partner, the real estate transaction may be funded by a number of limited partners. As a limited partner rather than a general partner, the responsibility will be restricted, but also the individual would not be able to make the same decisions as a general partner. For private equity firms, limited partnerships are a common option for purchasing privately held businesses with the intention of improving their value. Similarly, The private equity firm’s name may not be well-known compared to the firms it invests in, although this is not always the case.
THE CARLYLE GROUP 1998 EQUITY POOL, L.L.C
The Carlyle Group 1998 Equity Pool, L.L.C is a major subsidiary of The Carlyle Group.
The Carlyle Group 1998 Equity Pool, L.L.C sees its place of formation is in Delaware, although The Carlyle Group itself is headquartered in Washington. The Carlyle Group 1998 Equity Pool, L.L.C registered itself on 20th January 1999, as a limited liability company for purposes of Process Service. A foreign LLC is a legal entity established under the laws of another state, and Washington has Process Service rules regarding the said establishment.
THE CARLYLE GROUP INVESTMENT HOLDINGS, L.L.C.
The Carlyle Group Investment Holdings, L.L.C is incorporated in the state of Delaware. The entity retains Corporation Trust Company as its registered agent for Process Service. As such, the Carlyle Group Investment Holdings, L.L.C is would be classified as a domestic limited liability company in the state of Delaware in accordance with Process Service norms.
A Delaware Limited Liability Company (LLC) is one of the most cost-effective methods to start a company in the United States (LLC). Due to the characteristics of a Delaware limited liability corporation and its Process Service requirements, non-resident aliens in the United States may be able to evade US taxes by utilizing an LLC for Process Service. Owners are responsible for drafting an operating agreement for Delaware Limited Liability Company, unlike other organizations, which have an operating agreement drawn up by a third party. Members and/or founders may demand changes to the operating agreement in accordance with law and Process Service. No other state’s LLC statutes come close to Delaware’s in terms of contractual flexibility.
As a result, LLCs protect their members’ assets from liability and creditors by setting a limit on personal responsibility that forbids members from being personally accountable in any manner, even if they are actively engaged in the management of the firm.
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1. According to the PEI 300 index, Carlyle was the biggest private equity firm in the world in 2015, but by 2020 it had fallen to the second position. A report by Private Equity International (PEI) ranked the top 300 firms based on total private equity fundraising over the five-year period ending on April 1, 2020.
2. The lawyer Rubenstein, who is located in Washington, D.C., previously served in the Carter administration. D’Aneillo and Conway worked together at Marriott, while Norris and D’Aneillo collaborated at MCI Communications. Two years later, Rosenbaum and Norris quit the organization. There is still work for Rubenstein, Conway, and D’Aneillo.
3. Quint, Michael. ‘Saudi Prince to Become Citicorp’s Top Stockholder.’ The New York Times, The New York Times, 22 Feb. 1991, https://www.nytimes.com/1991/02/22/business/saudi-prince-to-become-citicorp-s-top-stockholder.html.
4. Eleven real estate funds, two infrastructure funds, two power funds, one international energy fund, and four Legacy Energy Funds are managed by Carlyle’s Real Assets business (funds that Carlyle jointly advises with Riverstone). In addition, NGP recommended nine of the funds in this area. As of March 31, 2018, the Real Assets category had an AUM of about $44 billion.
5. With $75 billion in assets under management (AUM) as of March 31, 2018, Carlyle’s Corporate Private Equity business advises 23 buyout and ten growth capital funds
6. BBC News Online reported on March 12th, 2008 that ‘instead of underpinning the mortgage-backed securities market, it seems to have had the opposite effect, giving lenders an opportunity to dump the risky asset’ and that Carlyle Capital Corp. ‘will collapse if, as expected, its lenders seize its remaining assets
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10. THE CORPORATION TRUST COMPANY CORPORATION TRUST CENTER 1209 ORANGE ST WILMINGTON County: New Castle DE Postal Code: 19801 302-658-7581
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