Carlyle To Acquire Emerging Markets Fund
Friday, June 17, 2011

Global alternative asset manager The Carlyle Group and Emerging Sovereign Group (ESG) have announced that Carlyle has agreed to purchase a 55% stake in ESG, a New York-based emerging markets equities and macroeconomic strategies investment manager.

ESG will reinvest a majority of the initial cash proceeds from the transaction into the ESG funds. Terms of the transaction, which is expected to close by July 1, were not disclosed. The transaction has already received the requisite fund consents, according to Carlyle.

Mitch Petrick, Managing Director and Head of Carlyle’s Global Market Strategies business, said: “Emerging markets is a core competency of Carlyle’s corporate private equity and real assets franchise and a significant untapped opportunity for Carlyle’s global market strategies platform. ESG has a stable, proven team, and we believe the right strategies to capture a multi-decade trend of exceptional growth in emerging markets. With this strategic partnership, we expect to leverage Carlyle’s local presence, industry and operating knowledge, and senior advisor network in emerging markets with ESG’s public markets franchise to seek to generate superior returns.”

ESG was established in 2002 and currently has four emerging markets equities and macroeconomic strategies. Tiger Management will maintain a significant investment in the ESG funds and an ownership interest in ESG post-closing. ESG founder Kevin Kenny will continue as Chief Investment Officer and manage the day-to-day operations, all investment decisions and portfolio construction.

Carlyle’s Global Market Strategies business comprises an array of long/short credit hedge funds, structured credit, mezzanine and distressed products – 39 funds with USD20.6bn in assets managed by 68 investment professionals in New York, Washington, DC, Los Angeles, Hong Kong and London as of December 31, 2010.