CG - The Carlyle Group L.P.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
25.79
+0.16 (+0.62%)
At close: 4:00PM EDT
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Previous Close25.63
Open25.80
Bid25.12 x 1800
Ask26.24 x 4000
Day's Range25.25 - 26.18
52 Week Range15.09 - 26.18
Volume1,103,275
Avg. Volume1,161,184
Market Cap8.801B
Beta (3Y Monthly)1.56
PE Ratio (TTM)10.71
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield1.47 (5.74%)
Ex-Dividend Date2019-08-09
1y Target EstN/A
Trade prices are not sourced from all markets
  • Carlyle Group's David Rubenstein: "We're due for a recession"
    CBS News Videos

    Carlyle Group's David Rubenstein: "We're due for a recession"

    David Rubenstein is co-founder and co-executive chairman of The Carlyle Group, one of the world's largest private equity firms. It manages $223 billion across 362 investments around the world. Rubeinstein joins "CBS This Morning" to discuss why the Dow fell 800 points Wednesday and whether it means we're headed for a recession.

  • Carlyle Group, IBD Stock Of The Day, Eyes Buy Point Amid This Hot Market Trend
    Investor's Business Daily

    Carlyle Group, IBD Stock Of The Day, Eyes Buy Point Amid This Hot Market Trend

    IBD Stock of the Day Carlyle Group taps a hot stock market trend and boasts a solid profit outlook. CG stock is eyeing a buy point.

  • Moody's

    Arctic Glacier U.S.A., Inc. -- Moody's downgrades Arctic Glacier's CFR to B3; Outlook stable

    Moody's Investors Service ("Moody's") downgraded Arctic Glacier U.S.A., Inc.'s ("Arctic Glacier") Corporate Family Rating (CFR) to B3 from B2, and affirmed the company's Probability of Default Rating (PDR) at B3-PD. In addition, Moody's downgraded the ratings on the company's first lien credit facilities to B3 from B2, consisting of its $437 million principal ($413 million outstanding) first lien term loan and a $60 million revolving credit facility. "Arctic Glacier's downgrade stems from a rapid and material deterioration of credit metrics in 1H19, largely resulting from very unfavorable weather in most regions the company serves, with debt-to-EBITDA increasing roughly a turn in 2Q19 alone to about 7 times from about 6 times at 1Q19", said Brian Silver, Moody's Vice President and lead analyst for Arctic Glacier.

  • Moody's

    ION Trading Technologies S.a.r.l -- Moody's downgrades ION Trading Technologies' CFR to B3 from B2, outlook stable

    Moody's Investors Service ("Moody's") has today downgraded the corporate family rating (CFR) of ION Trading Technologies Limited (IONTT) to B3 from B2, as well as its probability of default rating to B3-PD from B2-PD. Concurrently, Moody's has downgraded ION Trading Technologies S.a.r.l instrument ratings to B3 from B2 on the term loans due in 2024 as well as the revolving credit facility due in 2022.

  • American City Business Journals

    The Reach at Kennedy Center surpasses $250M fundraising goal

    The John F. Kennedy Center for the Performing Arts made its fundraising goal for the Reach, its three-pavilion expansion, with two days to spare before its grand opening.  The project hit its goal on Sept. 5, just before the Reach opening festival was set to begin Sept. 7. The Reach has been under construction for more than two years, but it’s been in the works for more than half a decade. That time frame included an ill-fated plan to build one of the expansion's three pavilions on the Potomac River.

  • Moody's

    MHI Holdings, LLC -- Moody's assigns new ratings for MHI Holdings (B2 CFR, B2 Sr Sec Bank Facilities); outlook stable

    Moody's Investors Service ("Moody's") assigned initial ratings to MHI Holdings, LLC ("MHI" or the "company"), including a B2 corporate family rating ("CFR") and a B2-PD probability of default rating, as well as B2 ratings for the company's first lien bank credit facilities. The ratings outlook is stable.

  • Bloomberg

    Carlyle, Ex-Domino’s CEO to Buy Brands Worth Up to $10 Billion

    (Bloomberg) -- The former Domino’s Pizza Inc. chief who oversaw a period of blistering growth for the restaurant chain is teaming up with Carlyle Group LP to buy other consumer companies that can benefit from a technology overhaul.Patrick Doyle, who left his post as Domino’s chief executive officer in 2018, will work with Carlyle to acquire established brands worth as much as $10 billion, according to a statement Wednesday. The partnership will focus on both public and closely held companies, including family businesses, initially targeting the consumer and retail sectors in North America and Europe.“We are looking for established companies that consider technological and digital improvement a top priority but haven’t yet had the adequate resources or expertise to pursue this evolution of their businesses,” said Jay Sammons, Carlyle’s head of global consumer, media and retail, who will be working with Doyle.Carlyle, which oversaw $223 billion as of June 30, is banking on technology, media and telecommunications as a key to its growth. This week, the Washington-based firm said it’s backing HireVue, which uses artificial intelligence to help companies make hiring decisions. Carlyle has also invested in DiscoverOrg, which uses data to help companies drive their sales, marketing and recruiting efforts.Doyle, who took over as CEO at Domino’s in 2010, gained experience turning around a consumer company through technology. During his tenure, the chain doubled its market share to become the world’s top pizza company based on retail sales. Its decision to embrace tech -- from mobile-ordering capabilities to “hot spot” delivery for locations without an address -- is largely credited with the overhaul.Doyle, 56, will contribute personal capital to each acquisition, the companies said.To contact the reporters on this story: Anne Riley Moffat in New York at ariley17@bloomberg.net;Heather Perlberg in Washington at hperlberg@bloomberg.netTo contact the editors responsible for this story: Crayton Harrison at tharrison5@bloomberg.net, ;Alan Mirabella at amirabella@bloomberg.net, Josh Friedman, Vincent BielskiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Carlyle Takes Stake in AI-Driven Hiring Firm in Tech Expansion

    (Bloomberg) -- Carlyle Group is taking a majority stake in a firm that uses AI as private equity shops ramp-up deals in the fast-growing technology sector.Carlyle is backing HireVue, which deploys artificial intelligence to help companies make hiring decisions, according to the firms. Early investors including TCV, Granite Ventures and Sequoia Capital will remain as minority partners. Carlyle declined to disclose the value of the deal.The investment is the latest in an area Carlyle considers core to its growth -- global technology, media and telecommunications. It has already committed $30 billion to the sector and this deal is being led by its Menlo Park, California-based growth team.Carlyle is acquiring the stake through its $18.5 billion private equity fund at a time when buyout firms have been benefiting from an industrywide fundraising boom. That has helped the Washington-based company amass $223 billion in assets.Carlyle has also invested in DiscoverOrg, which uses data to help companies drive their sales, marketing and recruiting efforts. Other firms are seeking to make more growth equity investments as well. Blackstone Group Inc. hired Jon Korngold in January to build and lead a new platform at the company focused on growth.Based just south of Salt Lake City, HireVue clients have included Hilton Worldwide Holdings Inc., JPMorgan Chase & Co. and Delta Air Lines Inc. The company uses AI tools to assess and discover talent and has a video interviewing platform that is widely adopted.HireVue is led by Chief Executive Officer Kevin Parker, the former CEO of project-management software maker Deltek Inc. HireVue’s board includes Matthew Miller, a partner at Sequoia Capital. Goldman Sachs Group Inc. was HireVue’s financial adviser for the transaction.To contact the reporter on this story: Heather Perlberg in Washington at hperlberg@bloomberg.netTo contact the editors responsible for this story: Alan Mirabella at amirabella@bloomberg.net, Vincent BielskiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Can a Swedish LBO Firm Do What Carlyle Couldn’t?
    Bloomberg

    Can a Swedish LBO Firm Do What Carlyle Couldn’t?

    (Bloomberg Opinion) -- It will be the biggest initial public offering of a private equity firm for a decade. EQT AB’s prospective shareholders will need to believe the stock will fare better than those of its U.S. counterparts.The big U.S. buyout firms went public in a rash of listings kicked off by Blackstone Group Inc. in 2007. Raising capital helped them to develop their businesses – but shareholder returns since have been mixed. Until this year, Blackstone and Carlyle Group LP had seen their stock underperform the S&P 500 index.True, Switzerland’s Partners Group Holding AG has far outpaced its local benchmark since going public in 2006; but the overall impression is that private equity sits ill with public markets.Enter EQT. The Swedish firm, founded by the Wallenberg family 25 years ago, confirmed Monday it will seek to raise at least 500 million euros ($548 million) in a Stockholm IPO. It said a year ago it wanted to raise capital. The question was how. EQT could surely have found the money privately. The industry likes chewing on itself: Blackstone last month agreed to buy a minority stake in BC Partners, a British leveraged buyout firm.The advantage of an IPO is that the company’s existing owners get the chance to cash in their holdings over time. The Wallenbergs still own 23% of EQT. The remainder is held by 70 individuals, with around 45% owned by just ten people. Together, they will reap an undisclosed sum in the deal.EQT’s economics aren’t dissimilar to those of conventional asset managers. Only 25-30% of future revenue will come from its slice of the gains on portfolio investments. Most income will be from recurring management fees. Earnings were 110 million euros in the first half. Annualize that and apply an 18 times multiple, somewhere between the U.S. firms and Partners, and the equity valuation would be around 4 billion euros before factoring new money raised in the IPO.The partners have agreed not to sell further holdings for three to five years after listing “without consent”; there doesn't appear to be an immediate succession issue looming. That offers some comfort this isn’t a thinly veiled rush for the exit.The share-price performance of the U.S. peers is partly down to their arcane governance, something that is being remedied. Blackstone and Carlyle said this year they were converting from partnerships to corporations. Valuations have climbed accordingly. The good news is that EQT has always been a corporation and will have a one-share, one-vote governance structure from the get-go.Pension funds and wealthy investors are throwing money at private equity, so EQT’s market is growing. Having a proprietary pot of capital makes sense – it helps to seed new funds when clients are wary of innovation. The big unknown is the firm’s ability to secure the best investment opportunities. Right now, deal-makers are long on capital but short on targets. EQT’s Scandinavian connections set it apart. That should help it to grow in an industry that already has more money than it knows what to do with – but it’s no guarantee.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Carlyle Is Said to Mull U.S. Listing for Uber Rival Addison Lee
    Bloomberg

    Carlyle Is Said to Mull U.S. Listing for Uber Rival Addison Lee

    (Bloomberg) -- Carlyle Group LP is considering a U.S. listing for Addison Lee after attempts to sell the London minicab company generated muted interest, according to people familiar with the matter.Carlyle would sell the company into a so-called special purpose acquisition company, a firm that’s floated in an initial public offering in order to raise funds for a deal, the people said. Addison Lee would take on the public listing in New York after the takeover is completed, they said, asking not to be identified because the deliberations are private.The private equity firm is working with investment banks Jefferies Financial Group Inc. and Cowen Inc. on the potential listing, the people said. Discussions are at an early stage and no final decisions have been made, the people said. Carlyle could still opt to keep the unit for longer or sell it instead of pursuing the listing, they said.Representatives for Carlyle and Jefferies declined to comment. Representatives for Addison Lee and Cowen couldn’t immediately be reached for comment.Carlyle bought Addison Lee in 2013 for about 300 million pounds ($366 million) including debt, a person briefed on the matter said at the time. The business has been hit by fierce competition from ride-hailing businesses, particularly Uber Technologies Inc. The minicab firm reported a wider pretax loss of about 39 million pounds in the 12 months to August 2018, compared to a loss of 21 million pounds a year earlier, while revenue rose 13% to 390.3 million pounds.\--With assistance from Sarah Syed, David Hellier and Matthew Monks.To contact the reporters on this story: Dinesh Nair in London at dnair5@bloomberg.net;Aaron Kirchfeld in London at akirchfeld@bloomberg.netTo contact the editors responsible for this story: Daniel Hauck at dhauck1@bloomberg.net, Amy Thomson, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Carlyle Dragged Into $300 Million Hong Kong Nickel-Fraud Saga

    (Bloomberg) -- Carlyle Group is the latest big name to emerge in a years-long attempt to untangle an elaborate nickel-trading fraud that ensnared major metals brokerages.ED&F Man Capital Markets Ltd. is seeking a court order allowing its lawyers to question two former employees of a Carlyle unit known as Vermillion Asset Management, according to a document filed earlier this month with a U.S. court in New York. Carlyle funds took in more than $110 million from a firm tied to the alleged $300 million scam, the document states.ED&F Man has “reason to believe that the witnesses can offer relevant information,” and has “no present intention” to make the two men parties to litigation the firm has initiated in the U.K., according to the document filed by ED&F Man. Carlyle and the two former staffers aren’t accused of any wrongdoing in the document.Representatives of ED&F Man and Carlyle declined to comment.The Carlyle links were discovered as part of a series of long-running lawsuits by ED&F Man and others against several Hong Kong firms accused of using fake warehouse receipts to sell the same nickel holdings to multiple buyers.Bogus ReceiptsIn late 2015, ED&F Man purchased around $300 million of nickel from Hong Kong-based Come Harvest Holdings and Mega Wealth International before selling the metal on to Australia and New Zealand Banking Group Ltd. The metal itself was stored across Asia, with brokers trading warehouse receipts as proof of ownership, according to the document.The scheme came to light when the Sydney-based bank looked into selling the nickel and discovered that most of the receipts were probably fake.The courtroom drama will be an unwelcome reminder for Carlyle of its ill-fated stumble into commodities hedge funds with the 2012 purchase of Vermillion, which lent to commodities traders around the world, including Asia, and secured loans by taking title of the metals. The unit was later shuttered after one of its key funds lost more than 97% of client assets in the wake of soured futures bets.Shortly after leaving Vermillion, the two employees -- Matthew Olivo and Ian McGuinn --received a combined $350,000 from Genesis Resources Inc., a second firm at the center of the alleged fraud, according to the document filed by ED&F Man.Bank AccountsMcGuinn, who was head of business development and marketing at Vermillion, helped Genesis with market analysis and initial planning to start a hedge fund, according to a person with knowledge with the matter. Genesis paid McGuinn a consulting fee, though it didn’t end up going into that business, the person said.A spokeswoman for McGuinn declined to comment.Olivo, a director of structured investments at Vermillion until April 2016, did not respond to email and LinkedIn requests seeking comment.ED&F Man and ANZ filed claims in Hong Kong courts to gain access to bank account information for Come Harvest and Mega Wealth as well as U.S.-based Genesis Resources, the broker that helped put the deal together.Fund flows totaling more than $110 million to Carlyle funds were discovered as a result of the bank-account trawl, with “significant portions of these payments” traced to money ED&F Man paid Come Harvest, according to the document.Representatives for Come Harvest, Mega Wealth and Genesis Resources declined to comment. Previously a lawyer for Come Harvest and Mega Wealth said they were “vigorously” contesting ED&F Man’s claims.To contact the reporters on this story: Benjamin Robertson in London at brobertson29@bloomberg.net;Jonathan Browning in London at jbrowning9@bloomberg.net;Heather Perlberg in Washington at hperlberg@bloomberg.netTo contact the editors responsible for this story: Shelley Robinson at ssmith118@bloomberg.net, Patrick Henry, David GlovinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • AMS clear to make takeover bid for Osram in potential bidding war
    Reuters

    AMS clear to make takeover bid for Osram in potential bidding war

    Austrian sensor maker AMS will go ahead with a takeover bid for Osram that values the German lighting group at 4.3 billion euros ($4.8 billion), it said on Wednesday, setting the stage for a potential bidding war. Osram said it had waived an agreement that so far has prevented AMS from making a bid to rival that of private equity investors Bain Capital and Carlyle , confirming an earlier Reuters story that had pushed Osram shares to a five-month high. The stock closed 3.1% higher at 36.25 euros, well above the 35.00 euros per share private equity offer but below the 38.50 euros per share AMS has promised.

  • Thomson Reuters StreetEvents

    Edited Transcript of CG earnings conference call or presentation 31-Jul-19 12:30pm GMT

    Q2 2019 Carlyle Group LP Earnings Call

  • Reasons Driving Conversion of Private Equities Into C-Corp
    Zacks

    Reasons Driving Conversion of Private Equities Into C-Corp

    Favorable markets and conversions into C-corps, which kick-started post the 2017 tax overhaul, are providing a boost to shares of private equity firms.

  • This Alpine Lighting Deal Brings an Avalanche of Risk
    Bloomberg

    This Alpine Lighting Deal Brings an Avalanche of Risk

    (Bloomberg Opinion) -- A 12,000-foot-high Alpine mountain range and 250 miles separate AMS AG’s base in the Austrian town of Premstaetten and Osram Licht AG’s Munich headquarters. The Austrian firm must overcome much bigger obstacles in its attempted takeover of the German lighting-maker. After months of toing and froing, AMS finally tabled a 3.7 billion-euro ($4.1 billion) approach for Osram late on Sunday. The deal would trump a 3.4 billion-euro bid from Bain Capital and Carlyle Group LP that Osram has already accepted. From that perspective, it looks very attractive to the German company’s investors. The approach offers a glimmer of hope: the Bain-Carlyle bid appears dead in the water after being rejected by Allianz Global Investors, Osram’s biggest shareholder, last week.The difficulty is on the AMS side. Chief Executive Officer Alexander Everke hasn’t yet done enough to warrant lifting the company’s debt ratios to levels well above most peers in exchange for returns in the near term that are likely to be below capital costs, based on planned synergies and analyst earnings forecasts. The company is confident returns will exceed costs in the second year after the deal completes. That will be contingent on hitting some ambitious savings targets. In Everke’s three years at the helm, AMS has generated significantly lower returns for shareholders than the Philadelphia Stock Exchange Semiconductor Index, despite major outlays on acquisitions and manufacturing capacity. Sure, AMS has improved its sensor offering and, after a bumpy few years, might finally be starting to demonstrate returns on that spending.But integrating Osram, with its 24,300 employees globally, is a significantly greater challenge than AMS’s biggest acquisition to date: The 2016 deal to buy Heptagon, with just 830 employees, for $570 million.To fund the takeover, AMS plans a 1.5 billion-euro equity increase, underwritten by UBS Group AG and HSBC Holdings Plc, which 50% of shareholders will need to approve at an extraordinary general meeting in the fourth quarter. In return, it will get a company whose core automotive market is shrinking.The offer is a gamble on carmakers adopting more and smarter sensor technology for the vehicles they are still able to sell. Osram’s strongest business has traditionally been car headlamps, but in recent years it has expanded into different parts of the optical spectrum, such as infra-red. AMS is optimistic that it can package those products with its sensors to work in autonomous cars (which might need laser-based environmental sensors) and for in-cabin sensing (to tell, for example, if the driver has fallen asleep).It seems a hell of a lot of upfront risk given that it’s unclear what kind of sensors autonomous cars will need when they hit the roads on a significant scale in perhaps a decade’s time. AMS was unwise to invest so heavily in smartphone sensors when it did. But the automotive sensor market is not the best way to diversify.\--With assistance from Chris Hughes.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: Stephanie Baker at stebaker@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • AMS Ignites Battle for Osram With $4.1 Billion Rival Offer
    Bloomberg

    AMS Ignites Battle for Osram With $4.1 Billion Rival Offer

    (Bloomberg) -- AMS AG re-entered the battle for Osram Licht AG with a 3.7 billion euros ($4.1 billion) offer, days after a major shareholder rejected a lower bid by rivals for the German light and sensor maker.Osram soared as much as 11% Monday, following the weekend approach from AMS that values the target at 38.50 euros a share. That compares with the 35 euros-a-share from private-equity firms Bain Capital and Carlyle Group, thrown into jeopardy last week when top investor, Allianz Global Investors, rejected it as too low.The new offer is in line with an earlier bid that Austrian sensor maker AMS mooted but then withdrew almost a month ago.Osram “raised valid concerns in the past, and I think with the offer we provided them yesterday, we answered all their concerns,” AMS Chief Executive Officer Alexander Everke said in a call with reporters on Monday. “We have been looking at Osram for a long time.”AMS shares fell 8.7% in Zurich. Osram traded at 35.09 euros as of 9:07 a.m. in Frankfurt.AMS is in regular contact with investors, including Allianz, Everke said on the call. Allianz is a shareholder of both companies, holding about 0.38% in AMS and 9.3% of Osram, according to data compiled by Bloomberg.Osram became a takeover target after a series of profit warnings and a public spat over strategy with Siemens AG, which spun off the division in 2013. Its earnings have suffered because of the company’s exposure to the automotive industry, which accounts for over half of its revenue.Carmakers and suppliers are grappling with shrinking demand in China and Europe and the expensive transition to electric cars. Investors also lost confidence in the ability of CEO Olaf Berlien and management to turn the company around. The stock has lost more than half its value since peaking in early 2018.“This counter bid will test how keen the private-equity consortium is for the Osram asset as AMS has now secured financing to offer 10% more per share,” Morgan Stanley analyst Lucie Carrier said in a note.If AMS were successful in its takeover attempt, it would sell off Osram’s digital division that makes lighting controls for use in horticultural and medical systems, among others. The company would also not touch Osram’s collective bargaining agreements for five years, according to the statement.(Updates with AMS CEO comment in sixth paragraph)\--With assistance from Eyk Henning.To contact the reporter on this story: Oliver Sachgau in Munich at osachgau@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, John BowkerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Moody's

    NEP Europe Finco B.V. -- Moody's downgrades NEP's CFR to B3 following incremental debt raise

    Moody's Investors Service ("Moody's") downgraded NEP/NCP Holdco, Inc's (NEP) Corporate Family Rating (CFR) to B3 from B2, Probability of Default Rating (PD) to B3-PD from B2-PD, senior secured 1st lien credit facilities to B2 from B1 and senior secured 2nd lien term loan to Caa2 from Caa1. The outlook for NEP/NCP Holdco, Inc and NEP Europe Finco B.V. is stable. "Moody's expectations for negative free cash flow in 2019 due to lower operating performance than originally forecasted at the time of recapitalization and high capital expenditures, as well as its anticipation of further debt-funded M&A, drive the ratings downgrades," said Alina Khavulya, Moody's Senior Analyst.

  • KLDiscovery: A Unique Bet on Data Getting Bigger and Corporate Litigation Thriving
    IPO-Edge.com

    KLDiscovery: A Unique Bet on Data Getting Bigger and Corporate Litigation Thriving

    Pivotal Acquisition Corp. CEO Jonathan Ledecky and KLDiscovery CEO Chris Weiler are Merging Companies By John Jannarone Anyone who follows daily news knows that civil lawsuits against corporations aren’t going away. And between emails, texts, and messaging across several devices, it’s clear that data is growing while getting harder to harness. The good news: A […]

  • Would You Bet Against Bain, Carlyle and a Trade War?
    Bloomberg

    Would You Bet Against Bain, Carlyle and a Trade War?

    (Bloomberg Opinion) -- The news about the trade war gets worse by the day. The same goes for the auto industry. That makes the attempt to squeeze a higher price for automotive lighting group Osram Licht AG one of the boldest activist interventions in recent M&A history.Allianz Global Investors thinks the 4 billion-euro ($4.5 billion) offer is at a “knock-down” price and says it is minded to reject it. The technicalities of this transaction mean the refusenik, with a 10% holding, is in a strong position to kill the deal. Bain Capital and Carlyle Group need owners of 70% of Osram’s shares to accept to get the takeover financed. The large cohort of individual investors and passive funds on the register had already made that a challenging hurdle.The price is certainly underwhelming. Between late March, when Osram issued a profit warning, and the deal being agreed in July, the shares traded at an average of 28.81 euros. The offer is 22% more than that. Allow for the bid speculation that was supporting the stock, and the premium is more like 30%, a more typical top-up. But the shares were trading for far more two years ago.The offer values Osram at almost 10 times estimated Ebitda for 2020, a valuation it last commanded in 2017. The snag is that the weather today is a better indicator of the weather tomorrow than the weather two years ago. Other suppliers to the auto industry, such as Germany’s Contintental AG, have been reeling from slowing demand.Osram’s managers don’t have a plan of their own to lift the stock to the offer level. If the bid fails, they would have a major task on their hands to rebuild credibility. There would have to be a new management team and an attempt to form a new strategy.It is quite something that Allianz is prepared to risk that outcome. This may be a ploy to get Bain and Carlyle to raise their offer despite the fact that the case for buying Osram seems, if anything, to have weakened in recent weeks. It’s possible that they could pay a higher price and still reap double-digit returns by restructuring Osram out of the public eye. But those profits would be less certain.Bain and Carlyle cannot lower the acceptance threshold to get the deal over the line without having to fund the whole thing in equity. That would defeat the whole idea of a leverage buyout. So they will have to pay more for an asset that has become more risky. Rival suitor AMS AG has yet to lay down an offer that would force the issue. Private equity might blink first – but it is a big gamble.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Facility that's home to 'Avatar' sequels is sold for $650 million
    American City Business Journals

    Facility that's home to 'Avatar' sequels is sold for $650 million

    Real estate investment firm Hackman Capital Partners has acquired the company that operates Manhattan Beach Studios from Carlyle Group for $650 million.

  • GuruFocus.com

    The Carlyle Group Lp (CG) CFO Curtis L. Buser Sold $1.8 million of Shares

    CFO of The Carlyle Group Lp (30-Year Financial, Insider Trades) Curtis L. Buser (insider trades) sold 80,381 shares of CG on 08/01/2019 at an average price of $22.85 a share. Continue reading...

  • Carlyle To Let Shareholders Have More of a Say
    SAY

    Carlyle To Let Shareholders Have More of a Say

    One of the biggest financial service companies around is changing the way it does business, and will give shareholders more of a voice than before. Cha-Cha-Changes The Carlyle Group has announced plans to become a “C” corporation. Before this news, the financial giant was a publicly traded partnership, and it will now be the first U.S. private equity firm to allow shareholder votes. Upping Its Valuation: Major stock indexes such as S&P; Dow Jones and FTSE Russell have been moving to exclude companies with several different classes of stock from their indexes. By converting to a corporation and using a traditional “one share, one vote” structure, Carlyle is hoping that it can get included in these indexes and find a bigger marketplace. Sharing Is Caring Carlyle's single class of shares will give “greater say to the roughly 30% of shareholders who aren’t insiders at the firm” and will satisfy FTSE Russell’s minimum requirements for public-shareholder voting rights. Dual Citizens Though power will remained pooled among its executives, who have 66% voting power, Carlyle's adoption of a one share, one vote policy it notable because private equity firms are known for being cloistered off and secretive. And although Carlyle's majority stakeholders have said they'll vote in a block for up to the next five years, bringing shareholders into the fold—and allowing them to proxy vote on issues like executive pay—is a significant, modern shift yet to be adopted by other new kids on the block. -Michael Tedder Photo: Issei Kato/ REUTERS

  • Reuters

    UPDATE 1-Carlyle to give shareholders a vote in switch to corporation

    Carlyle Group LP emulated its peers on Wednesday with plans to convert from a publicly traded partnership into a corporation, and went one step further by announcing it will become the first U.S. private equity firm to hold shareholder votes. Insiders own 66% of Carlyle, and the vast majority of them have committed to voting their shares as a block for up to five years, the firm said. The move could end up boosting Carlyle's valuation, because it will allow its inclusion in indices that exclude publicly traded partnerships.