| Log in

Carlyle To Buy Emerging Markets Hedge Fund

15 June, 2011

The Carlyle Group will buy a majority stake in hedge fund Emerging Sovereign Group as it prepares for an initial public offering later this year or early next year.

The Washington, D.C.-based private equity giant has agreed to take a 55 per cent stake in the New York-based emerging markets specialist, both companies said today. The deal for ESG follows Carlyle’s December acquisition of a majority stake in Claren Road Asset Management.

ESG was founded in 2002 by former Morgan Stanley emerging-markets bond-trading chief Kevin Kenny, backed by Tiger Management. Tiger will retain its stake both in ESG and ESG’s funds.

Kenny and ESG’s other principals will split an undisclosed amount of cash and a stake in Carlyle. They have agreed to invest the bulk of the proceeds in ESG’s funds, and could receive further payments depending on ESG’s performance. The fund is up 6.9% this year and returned 8.5 per cent last year.

The deal is expected to close before the end of the month.

ESG has about $1.6 billion in assets under management and employs 26. The firm features four strategies, among them macro and long/short equity.

 


Leave Your Comment
Carlyle Group Returns $7.5B To Investors; Puts $7B To Work In 2010

Carlyle Group Returns $7.5B To Investors; Puts $7B To Work In 2010

Shrija Agrawal 6 years ago
The Carlyle Group returned $7.5 billion to its investors in 2010, according to...
Hedge Fund Alarm Bells Are Ringing Over China

Hedge Fund Alarm Bells Are Ringing Over China

Sam Jones / FT 6 years ago
The eurozone’s political tarantella may still be roiling global markets but...
Carlyle buys 10% in Infotech Enterprises for $38M

Carlyle buys 10% in Infotech Enterprises for $38M

Madhav A Chanchani 5 years ago
Private equity major the Carlyle Group has picked up nearly 10 per cent stake in...
No Comments

Carlyle To Buy Emerging Markets Hedge Fund

Powered by WordPress.com VIP