Sunday, November 22, 2009

Carlyle Rest Stop Deal a Harbinger of Bigger Things to Come

WSJ writes:

Private-equity firm Carlyle Group has struck an agreement with the state of Connecticut to rebuild and operate the state's 23 rest stops in return for share of their revenues.

The so-called public-private partnership calls for Carlyle and its partners to invest $178 million in the service areas. Carlyle-owned Dunkin' Donuts restaurants will be added to the rest stops. They will also house Subway sandwich shops, whose parent company is joining Carlyle in the investment.

Though a relatively small deal, the transaction could serve as a harbinger of bigger things to come, as state and municipal officials are looking to private capital to meet their infrastructure needs amid deep budget shortfalls.

At the same time, private-equity firms are increasingly pursuing infrastructure targets—which encompass airports, utilities and highways—as they look to diversify away from the their core buyout businesses. Carlyle was one of the first private-equity firms to start an infrastructure fund, raising about $1.1 billion in 2006.


  1. Did you notice Carlyle and the SEIU will work together on the deal? I had a little fun with that:

  2. The Carlyle Group is a Bush Connected firm, they also have bought large nursing home deals