Thursday, December 16, 2010

Abu Dhabi Increases Stake in Carlyle Group

Mubadala Development,  an investingment firm owned by the government of Abu Dhabi,  said it will raise its 7.5% stake in The Carlyle Group. It will invest another $500 million in the Private Equity firm.

Carlyle maintains strong connections with many high ranking global officials, including George Bush, the father.

Mubadala will receive from Carlyle a combination of convertible subordinated notes and additional equity in the Carlyle general partnership. Among other things, the investment proceeds will be used to expand product lines and offerings to Carlyle’s investors, Carlyle said.

Mubadala Chief Executive Officer Khaldoon Al Mubarak said, “This additional investment in Carlyle underscores the importance of the strategic partnership to Mubadala. Since the initial investment in 2007, our two firms have collaborated across a number of industry sectors. We are confident in Carlyle’s ongoing success as a global alternative asset manager and are pleased to support their strategic initiatives, including product and geographic expansion.”

Carlyle Co-Founder and Managing Director David Rubenstein said, “Our partnership with Mubadala continues to strengthen as we collaborate on investment opportunities and share sector and regional economic insights. We are proud to deepen our relationship with Mubadala.”

The banksters were also in on this.

Goldman Sachs served as exclusive financial advisor to Mubadala on this transaction. Citi and J.P. Morgan Securities LLC served as financial advisors to The Carlyle Group.

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