Carlyle Group Claren Road
Carlyle Group Buys 55% Stake in Claren Road Hedge Fund
The Claren Road acquisition illustrates the trend for private equity firms to diversify beyond their traditional field of leveraged buyouts. Diversifying into shorter-term investment strategies than leveraged buyouts can smooth out demands for liquidity by investors in private equity funds.
Blackstone Group LP (BX) bought a stake in Brazilian hedge fund manager Patria for a reported $200 million in October and GSO Capital Partners LP in March 2008. KKR & Co. LP (KKR), meanwhile, has hired a group of former Goldman Sachs Group Inc. proprietary traders to launch a credit hedge fund early next year.
Terms of the Claren Road transaction, which is expected to close by year's end, weren't disclosed.
The purchase is the second acquisition Carlyle managing director Mitch Petrick has made since being charged with building the firm's credit platform in March. Source