Carlyle Buys $6.7 Billion Global Fund Manager
The Carlyle Group announced today the purchase of Diversified Global Asset Management Corporation, a global hedge fund manager with a portfolio worth more than $6.7 billion, as part of the group's plan to diversify its investment options.
Washington D.C.-based Carlyle will pay $8 million in cash from its balance sheet and $25 million in stock, Bloomberg
Toronto-based DGAM will become Carlyle's fund-of-funds platform. Its client base is 100 percent institutional and includes some of the largest global public and private pension funds, endowments and sovereign wealth funds, according to a company statement.
"We are focused on providing fund investors with a broad suite of investment options under one roof," David M. Rubenstein, co-founder and co-chief executive officer of Carlyle, said in the announcement. "With the DGAM partnership, Carlyle's Solutions platform is now positioned to offer investors the ability to allocate across alternatives in hedge funds, private equity and real estate."
DGAM will become part of Carlyle's Solutions platform, which had assets under management of $48.4 billion as of September 30, 2013. The platform also includes AlpInvest, the private equity fund-of-funds operation, and Metropolitan Real Estate, which Carlyle recently acquired
The transaction is expected to close in February 2014.