Carlyle Company Case Study

Improved Essays
What is a Private Equity Firm?
A private equity firm is a controlling partner in an anthology of partnerships which come together to pool their capital and invest in a particular opportunity. These firms usually buy undervalued or underappreciated companies, improve them and then sell them at a profit. After buying a company, the private equity firm removes it from the stock market so that it can take crucial decisions without being answerable to shareholders or the public in general. By making the company private, the firm is answerable only to its small group of investors.
Private equity firms receive a return on their investments through usually the following ways:
• Initial Public Offer : Through this process a private company goes public
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The Carlyle Group
The Carlyle Group (founded in 1987) is a Washington based world’s largest and most successful American global asset management firm. The group has operations in four areas: corporate private equity, global marketing strategies, real assets and investment solutions with its specialisation being in Private equity. The group has over $193 billion of assets under management across 128 funds. The firm has investors from various strata of the society ranging from public and private pension funds to sovereign wealth funds, union and corporations.
Carlyle’s corporate private equity segment was established in 1990 and now has assets under management of $63 billion. The firm’s 32 private equity funds are categorised by geography or industry and are given advise by a separate team of professionals who live along with working in the markets where they invest.

2. Kohlberg Kravis
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(founded in 1976) is an American based multinational investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate and hedge funds. The firm’s headquarter is located in New York. The firm sponsors and manages private equity investment funds by investing in and partnering with industry leading franchises and companies perched for noteworthy improvement or growth that attract high quality management teams. The firm’s strategy is to work as partners with their portfolio companies and to assist in the operations of the business.

3. The Blackstone Group
The Blackstone Group (founded in 1985) is an American based multinational private equity, investment banking and financial services conglomerate with its headquarters located in New York. The firm specialises in private equity, credit and hedge funds along with financial advisory services. Their investments cross over a wide range of industries and continents. The firm focuses on friendly investments in large capitalisation

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