Monday, April 7, 2008
Carlyle Distressed Debt Fund
Wall Street Journal reports that the Carlyle Group is putting behind its own distress, and has raised $1.35 billion for a 'distressed debt fund'. The new fund, Carlyle Strategic Partners II, will do everything from investing in publicly traded bonds and bank loans to purchasing ailing companies outright.
Carlyle's press release states that 'Global private equity firm The Carlyle Group today announced it has raised $1.35 billion for its second distressed debt and corporate opportunities fund, Carlyle Strategic Partners II (CSPII). The CSP investment team invests in the debt and equity of operationally sound, financially distressed companies. “We are grateful for the strong support of our investors who recognize that the turbulent economic and capital markets environment and excessive leverage on corporate balance sheets creates great opportunities for distressed investing around the globe,” said Brett Wyard, Managing Director and Co-head of CSP.'
Update from USAToday - The new fund, Carlyle Strategic Partners II, is a return to more familiar ground for Carlyle. Most of Carlyle's funds seek to acquire ailing companies, restructure their operations, and then sell them, usually for a large profit. Carlyle spokeswoman Ellen Gonda said the firm's ability to raise $1.35 billion for the fund "is indicative of how well people understand that this is a different type of investment vehicle" than Carlyle Capital. Carlyle manages 60 funds with $81.1 billion in assets.
More from FT Alphaville on the nascent possibilities of distressed debt in a post 'credit crunch' market. The Carlyle fund - run by Brett Wyard and Ray Whiteman - will join Bain Capital’s Sankaty Advisors, Thomas H. Lee Partners’ THL Credit Group, and TPG’s TPG Credit Management in the distressed debt stakes. And while new deal volumes for complex debt instruments might be all but non-existant. There’s still decent paper to be had. Witness: all those folks buying up debt in the expectation of technical default - when the true value of cheap AAA tranches really comes into its own.
You might remember that a few weeks back, Carlyle Capital Corp., which owned $21.7 billion in MBS, went bellyup after taking on a barrage of margin calls. Details here. Now, not to put too fine a point on it, but Carlyle Strategic Partners II is built for eating up 'distressed' debt exactly like this. Its quite ironic, but this is an abject lesson on how to profit from your own misfortune, if there is such a thing....
Carlyle's press release states that 'Global private equity firm The Carlyle Group today announced it has raised $1.35 billion for its second distressed debt and corporate opportunities fund, Carlyle Strategic Partners II (CSPII). The CSP investment team invests in the debt and equity of operationally sound, financially distressed companies. “We are grateful for the strong support of our investors who recognize that the turbulent economic and capital markets environment and excessive leverage on corporate balance sheets creates great opportunities for distressed investing around the globe,” said Brett Wyard, Managing Director and Co-head of CSP.'
Update from USAToday - The new fund, Carlyle Strategic Partners II, is a return to more familiar ground for Carlyle. Most of Carlyle's funds seek to acquire ailing companies, restructure their operations, and then sell them, usually for a large profit. Carlyle spokeswoman Ellen Gonda said the firm's ability to raise $1.35 billion for the fund "is indicative of how well people understand that this is a different type of investment vehicle" than Carlyle Capital. Carlyle manages 60 funds with $81.1 billion in assets.
More from FT Alphaville on the nascent possibilities of distressed debt in a post 'credit crunch' market. The Carlyle fund - run by Brett Wyard and Ray Whiteman - will join Bain Capital’s Sankaty Advisors, Thomas H. Lee Partners’ THL Credit Group, and TPG’s TPG Credit Management in the distressed debt stakes. And while new deal volumes for complex debt instruments might be all but non-existant. There’s still decent paper to be had. Witness: all those folks buying up debt in the expectation of technical default - when the true value of cheap AAA tranches really comes into its own.
You might remember that a few weeks back, Carlyle Capital Corp., which owned $21.7 billion in MBS, went bellyup after taking on a barrage of margin calls. Details here. Now, not to put too fine a point on it, but Carlyle Strategic Partners II is built for eating up 'distressed' debt exactly like this. Its quite ironic, but this is an abject lesson on how to profit from your own misfortune, if there is such a thing....
Subscribe to Posts [Atom]
