The Carlyle Group and Mubadala Development Company today announced a definitive agreement in which Carlyle will sell a 7.5 percent stake to an affiliate of Mubadala for US$1.35 billion in cash.
The deal represents a 10% liquidity discount to the parties' agreed-upon US$20 billion firm valuation. The minority investment includes no associated voting rights and is subject to value-related protective rights.
Mubadala also committed US$500 million to an investment fund managed by Carlyle. The transaction is expected to close in October.
Mubadala joins the California Public Employees' Retirement System (CalPERS) as a strategic investor in Carlyle. CalPERS purchased a 5.5 percent stake in Carlyle in 2000.
Carlyle Co-founder David M. Rubenstein said, "Speaking on behalf of my fellow Co-founders William E. Conway, Jr. and Daniel A.
D'Aniello, Mubadala is among the most sophisticated investors in the world and we are honored to have them as long-term partners.
We feel this is an affirmation of the global business model we have created and a reflection of Carlyle's 20-year record of top-quartile returns. These resources, like the earlier investment by CalPERS, will add to Carlyle's capital base, strategically expand our business and be used for additional investments." Mubadala Managing Director & Chief Executive Officer Khaldoon Khalifa Al Mubarak, said, "Carlyle's outstanding returns, broad portfolio and global presence are a tremendous fit for Mubadala's regional expertise, accelerating growth, and international expansion.
We are excited about the potential for this partnership and our future relationship together." Carlyle is a global private equity firm with 900 employees operating in 21 countries managing US$76 billion in capital committed to 55 funds. Since 1987, Carlyle has invested US$34 billion in 686 transactions, returned US$32.5 billion in equity and gain to its investors and has US$30 billion in remaining value in its investments. Further, Carlyle has US$32 billion in capital available to invest.
Goldman Sachs advised Mubadala on the transaction. Source
The deal represents a 10% liquidity discount to the parties' agreed-upon US$20 billion firm valuation. The minority investment includes no associated voting rights and is subject to value-related protective rights.
Mubadala also committed US$500 million to an investment fund managed by Carlyle. The transaction is expected to close in October.
Mubadala joins the California Public Employees' Retirement System (CalPERS) as a strategic investor in Carlyle. CalPERS purchased a 5.5 percent stake in Carlyle in 2000.
Carlyle Co-founder David M. Rubenstein said, "Speaking on behalf of my fellow Co-founders William E. Conway, Jr. and Daniel A.
D'Aniello, Mubadala is among the most sophisticated investors in the world and we are honored to have them as long-term partners.
We feel this is an affirmation of the global business model we have created and a reflection of Carlyle's 20-year record of top-quartile returns. These resources, like the earlier investment by CalPERS, will add to Carlyle's capital base, strategically expand our business and be used for additional investments." Mubadala Managing Director & Chief Executive Officer Khaldoon Khalifa Al Mubarak, said, "Carlyle's outstanding returns, broad portfolio and global presence are a tremendous fit for Mubadala's regional expertise, accelerating growth, and international expansion.
We are excited about the potential for this partnership and our future relationship together." Carlyle is a global private equity firm with 900 employees operating in 21 countries managing US$76 billion in capital committed to 55 funds. Since 1987, Carlyle has invested US$34 billion in 686 transactions, returned US$32.5 billion in equity and gain to its investors and has US$30 billion in remaining value in its investments. Further, Carlyle has US$32 billion in capital available to invest.
Goldman Sachs advised Mubadala on the transaction. Source
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