CG - Carlyle Group L.P.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
30.02
-0.16 (-0.53%)
As of 9:39AM EST. Market open.
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Previous Close30.18
Open30.00
Bid29.91 x 800
Ask30.13 x 2200
Day's Range29.91 - 30.15
52 Week Range15.09 - 30.30
Volume64,594
Avg. Volume966,701
Market Cap10B
Beta (3Y Monthly)1.73
PE Ratio (TTM)10.59
EPS (TTM)2.84
Earnings DateFeb 4, 2020 - Feb 10, 2020
Forward Dividend & Yield1.36 (4.62%)
Ex-Dividend Date2019-11-08
1y Target Est30.50
  • Taylor Swift wins big at American Music Awards
    Yahoo Finance Video

    Taylor Swift wins big at American Music Awards

    Last night was the American Music Awards, and the big winner was Taylor Swift. The singer took home five trophies and was named the AMA's Artist of the Decade. Swift performed a medley of some of her biggest hits, including songs at the heart of her rights dispute with her former label. Some of the night's other winners included Billie Eilish and Lil Nas X. Jem Aswad, senior music editor at Variety, is joins Yahoo Finance to break down the night.

  • Carlyle Group considers a bid for Dr. Martens: BBG
    Yahoo Finance Video

    Carlyle Group considers a bid for Dr. Martens: BBG

    According to Bloomberg, The Carlyle Group is considering a bid for British boot maker, Dr. Martens. The two companies are in the early stages of negotiating.

  • Taylor Swift appeals for rights to music on Twitter
    Yahoo Finance Video

    Taylor Swift appeals for rights to music on Twitter

    Taylor Swift is appealing to her fans and private equity firm, Carlyle Group asking for help to earn the rights to her old music, owned by her former music label and Scooter Braun. Swift is being honored at the upcoming American Music Awards later this month and wants to perform a medley of her body of work. Yahoo Finance's Dan Roberts, Heidi Chung and Kristin Myers discuss on YFi AM.

  • Barrons.com

    Apollo, Carlyle, and 3 Other Alternative-Asset Managers That Have Steadied Their Dividend Payouts

    Income investors who’ve dismissed publicly traded alternative-asset managers like Apollo Global Management because of their inconsistent payouts might want to reconsider: Many of these companies have shifted their policies to focus more on steady dividend payments.

  • C-Suite Awards: Sameer Bhargava
    American City Business Journals

    C-Suite Awards: Sameer Bhargava

    Sameer Bhargava didn’t have a background in construction when he decided to make the leap from private equity, but he did have something he thought would be equally valuable: the ability to make things happen. Having worked for the likes of The Carlyle Group LP (NASDAQ: CG) and Bain Capital, Bhargava stepped into the role of chief financial officer at Clark Construction Group in 2016 with the aim of applying the Bethesda contracting giant’s track record of project management to converting big ideas into reality. After more than 20 of those projects were put into practice, the decisive moment came during a corporate leadership meeting in October, when Clark teams showed how those efforts helped clients avoid costly mistakes, save time or tackle projects more efficiently.

  • Moody's

    Acosta, Inc. -- Moody's downgrades Acosta's PDR to D-PD following bankruptcy filing

    Moody's Investors Service ("Moody's") today downgraded Acosta, Inc.'s ("Acosta") probability of default rating to D-PD from C-PD/LD. The downgrade was prompted by Acosta initiating Chapter 11 bankruptcy proceedings on December 1, 2019.

  • Carlyle’s Acosta Files Bankruptcy as Marketing Budgets Wane
    Bloomberg

    Carlyle’s Acosta Files Bankruptcy as Marketing Budgets Wane

    (Bloomberg) -- Acosta Inc., the marketing firm owned by Carlyle Group LP, has gone bankrupt after big consumer-product firms decided to do more of the work themselves to keep up with changing consumer tastes.The company filed for Chapter 11 bankruptcy in Wilmington, Delaware, with support from creditors on a plan that would hand them ownership of a reorganized company and slash $3 billion of long-term debt. Creditors including Elliott Management Corp., Oaktree Capital Management, Davidson Kempner Capital Management and Nexus Capital Management agreed to the deal, interim Chief Financial Officer Matthew Laurie said in a court declaration.Acosta had skipped an Oct. 1 bond interest payment and previously said it was working on a plan to hand control over to creditors. The deal provides $325 million in new capital and preserves about 30,000 jobs, Laurie said. Acosta said it has commitments from lenders for a $150 million loan to keep the company operating during the reorganization.Brand HandlersThe company and its rivals including Crossmark Holdings Inc. and Advantage Solutions Inc. are the brands behind the brands on the shelves of retailers like Walmart Inc., Target Corp. and Kroger Co. They make sure major retailers carry their clients’ products and display them well, and sometimes coordinate with the companies on product promotions.Acosta, based in Jacksonville, Florida, helps stock shelves for some of the largest U.S. consumer goods companies and offers sales and marketing services to brands including Campbell’s, Kellogg’s and Coca-Cola.The business has been squeezed as customers handle more of the marketing tasks in-house. They’re dealing with changing consumer behavior, including a shift from packaged goods to fresh foods, and to private label rather than traditional brands, leaving less demand for outside marketing firms.The bankruptcy filing listed total liabilities of $1 billion to $10 billion, and no more than $1 billion in assets.The case is Anna Holdings, 19-12551-CSS, U.S. Bankruptcy Court for the District of Delaware.(Adds details of creditor deal starting in second paragraph)\--With assistance from Dawn McCarty, Linus Chua and Molly Smith.To contact the reporters on this story: Katherine Doherty in New York at kdoherty23@bloomberg.net;Jeremy Hill in New York at jhill273@bloomberg.netTo contact the editors responsible for this story: Rick Green at rgreen18@bloomberg.net, Dawn McCartyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • India’s Millennial Credit Card Boom Runs Into Ambani
    Bloomberg

    India’s Millennial Credit Card Boom Runs Into Ambani

    (Bloomberg Opinion) -- For every 100 people in India, there are only three credit cards. A comparable penetration figure for the U.S. is 320.Statistics like these suggest that India’s first initial public offering of a credit card issuer is either an opportunity with boundless prospects — or a victim of arrested development. Which is it?The upcoming sale of shares in SBI Cards and Payment Services Ltd. will give investors a chance to find out. Between them, the controlling shareholder, State Bank of India, and its 26% partner, Carlyle Group, plan to sell up to 130.5 million shares. Throw in a simultaneous offer of new shares, and it could be a 96 billion rupee ($1.3 billion) IPO, India’s biggest in the current financial year, according to local media reports.   Business is booming at the country’s second-largest card issuer. After Carlyle arrived in 2017 to replace GE Capital in the two-decade-old venture, earnings were 7.4 rupees a share in the year through March 2018. The most recent six-monthly profit topped that figure. Younger millennials and Generation Z — those born after 2000 — are driving this growth. In India’s fiscal year ended in March 2016, barely 2% of credit card transactions were originated by people below 25 years of age. That number has jumped to 10%. Add the 26-30 age group, and the youth share of plastic is 35%, beating people over 40 by as much as eight percentage points. Yet only about 5% of Indians’ consumption per capita takes place through credit cards. After growing 12% annually over four years, average spending per card is stalling. While a slowdown is only to be expected given a sharp decline in economic momentum, the reason has more to do with the merchant than the spender.E-commerce, which is increasingly the most obvious use of a credit card, will account for barely 7% of India’s $1.2 trillion-a-year retail industry by 2021, according to Deloitte Consulting. Another 18% will go to malls, department stores and other forms of organized retail. But three-quarters of the market will remain with mom-and-pop stores. An average shop can hope to receive $775 in monthly business from cardholders. Card issuers would garner revenue of $11 of that, but the bank that acquired the merchant and fitted it up would receive just $1.50 a month. It’s simply not worth anyone’s while to expand the business into smaller towns dominated by small shops. Increasingly ubiquitous smartphones are far more suitable for payment authentication in a low-middle-income country than credit cards. Google Pay and Walmart’s PhonePe are leading people-to-people mobile payments in India, using the so-called unified payments interface, a system linking India’s banks. The same system will also drive people-to-merchant payments. Credit will just be an added layer. Banks will compete for whoever can bring them a lot of customers. India’s richest man, Mukesh Ambani, has 355 million customers for his 4G mobile network, Jio. Unsurprisingly, the oil-to-telecom tycoon wants to connect 30 million small retailers with common inventory-management, billing and tax platforms as well as low-cost payment terminals. He won’t be alone. Even in Indian e-commerce, Walmart Inc.’s Flipkart Online Services Pvt is promoting “cardless” credit, where the financing comes from banks and nonbank lenders. During the recent local holiday sale season, three out of four Amazon.com Inc. customers who availed themselves of credit to make purchases came from Tier 2 and 3 cities, where card penetration is low; every second buyer who borrowed to buy something did so for the first time.The parent State Bank’s opportunity in unsecured retail loans will be far larger than that of its IPO-bound cards unit. India’s largest commercial bank will make its low-cost deposits available to Ambani, Walmart and other digital commerce hopefuls who might be looking to sweeten their proposition to customers with a dollop of credit. That should still leave plenty of headroom for SBI Cards to grow. Its 18% market share means the company will remain a sought-after choice for co-branded partnerships, such as with Indian Railways and ride-hailing app Ola.Carlyle’s partial exit would value the U.S. buyout firm’s 26% stake at about seven times what it paid in 2017, according to Reuters. That’s a neat pile to make from plastic in such a short time, and in a country where it hasn’t really taken off. IPO investors will be content with a lot less.To contact the author of this story: Andy Mukherjee at amukherjee@bloomberg.netTo contact the editor responsible for this story: Patrick McDowell at pmcdowell10@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Reuters

    UPDATE 1-Carlyle Group set to make bumper profit from SBI Cards IPO

    SBI Cards and Payment Services, the credit card arm of State Bank of India (SBI), aims to raise roughly 90 billion rupees ($1.25 billion) in an initial public offering, according to a source familiar with the matter, in a deal set to make a bumper profit for U.S private equity firm Carlyle Group. SBI Cards is 74% owned by SBI, India's largest lender, while Carlyle Group owns the remaining 26%, a stake which it bought in 2017 from the lending arm of General Electric for about 20 billion rupees. SBI will divest 4%, while Carlyle is set to sell a 10% stake as part of the IPO process, which will also include a sale of fresh equity worth 5 billion rupees, according to a draft prospectus published by the book runners of the deal.

  • David Solomon, Stephen Schwarzman Prepare for Biggest 2020 Risks
    Bloomberg

    David Solomon, Stephen Schwarzman Prepare for Biggest 2020 Risks

    (Bloomberg Markets) -- No one makes it to the top of a major financial company without a keen understanding of risk. So we asked leaders of investment banks, asset managers, insurers, and private equity firms for their assessments of the perils that await in 2020. As they see it, there’s plenty to worry about—but there are also ways to be ready.David SolomonChairman and Chief Executive Officer, Goldman Sachs Group Inc.“I don’t think the biggest risks are related to the economy. There is a lot of uncertainty around the political landscape, which can cause businesses to hesitate on investment decisions. I wouldn’t say we’re going to talk ourselves into a recession, but uncertainty around the political landscape isn’t helping the economy or markets.“As we look out over the next several years, monetary policy will continue to be a big focus, and I believe we’ll look back and have lessons learned around the implications of negative rates.“We respond by staying focused on our clients and how we can help them navigate the challenges they face. And as a firm, we have a long-term strategy in place that we’re implementing, which is focused on harnessing growth opportunities in our existing businesses, building out new businesses such as consumer, and raising efficiency. Having said that, we have a 150-year history of adapting to dynamic operating environments.”Kewsong LeeCo-CEO, Carlyle Group LP“I am keeping an eye on the potential for a longer-term deterioration in the bilateral relationship between the U.S. and China. If the structural differences separating our two economic and political systems cannot be bridged over time, the ensuing escalation could lead to restrictions on investment and financial flows between our countries. Artificial restrictions on things like access to capital markets, cross-border investment, and asset ownership could slow economic growth and cause significant liquidity issues to emerge, with unpredictable and potentially deleterious market outcomes.“We remain focused on what we know we can control. This means investing for the long term, remaining disciplined and balanced, working with great partners, and deriving all we can from our global platform to help drive value creation regardless of periodic market disturbances or what’s going on politically.”Stephen SchwarzmanChairman and CEO, Blackstone Group Inc.“Economies around the world are slowing after a period of growth but are still showing resilience—particularly in the U.S. The global trend toward lower and even negative interest rates threatens to further damage growth and leave countries in a challenging position during the next downturn. But the biggest near-term risk remains geopolitical. Any number of seen or unforeseen issues could shake investor confidence and have an immediate negative impact. As I outline in my new book, What It Takes, Blackstone has built a culture that incorporates these downside risks into our decision-making, and it is important that governments, institutional investors, and companies alike do the same.”Anne RichardsCEO, Fidelity International“Negative bond yields are now of systemic concern. With central bank rates at their lowest levels and U.S. Treasuries at their richest valuations in 100 years, we appear to be close to bubble territory, but we don’t know how or when this bubble will burst. Central banks are under great pressure to support risk assets and risk sentiment, regardless of potential moral hazard. The eventual reversal of the continued downward trend in rates and yields could have highly disruptive ramifications—this is one reason that central banks including the U.S. Federal Reserve and the [European Central Bank] have backtracked on hiking rates several times since the GFC [global financial crisis].“Another area of concern is liquidity. The frictionless flow of capital around the world is subject to increasing barriers. Examples such as the U.S.-China trade war and the EU-Swiss spat over the trading of listed securities show that political disagreements are spilling over into capital and trade restrictions. As capital becomes less free-flowing and confined to smaller pools, it will weaken the ability of the financial system to respond dynamically to unforeseen liquidity events, such as an unexpected counterparty failure.“This is the time to be an active manager who can dynamically monitor and adjust for potential systemic risks. We meet regularly to review our macro positioning and are focusing on quality in our stock and credit selection, leaning on our strength in fundamental, bottom- up corporate research. We are diversifying among styles, sectors, and regions, and are drawing on our ability to trade in different jurisdictions and time zones and ensuring the maturity of investment and borrowings are appropriately matched.”David HerroDeputy Chairman, Harris Associates“Any move—whether it be election results or other political actions—to cripple free-market capitalism and private property rights is the biggest risk. As an investor, the solution, as always, is to seek the highest-quality businesses and the lowest valuations.”Axel WeberChairman, UBS Group AG“I see a high number of risks in 2020. For example: the trade conflict between the U.S. and China, the Middle East conflict, Brexit, U.S. elections, or more generally a deepening of current economic weakness around the globe. However, it’s not these risks per se that worry me the most. Such downside risks are known challenges for which one can prepare. What worries me more is the unprecedented level of uncertainty associated with these risks. For example, I worry about the potential adverse consequences of a reversal of globalization, the side effects of the extraordinarily accommodative monetary policy of the last 10 years on financial and monetary stability, or the potential systemic consequences of cyberattacks. As a bank, we have to be aware and prepared for such risks in highly uncertain times. This is why we feel comfortable with our regionally and divisionally diversified businesses. It allows us to manage our risk exposure prudently and our financial resources responsibly.”Andreas UtermannCEO, Allianz Global Investors“One: Continued fragmentation of the neoliberal world order. For most of the postwar era, the world has benefited enormously from freer trade and less impeded capital flows. The winners clearly outnumbered the losers. It must be hoped that growing trade frictions do not end up shrinking the pie, making redistribution toward the losers of globalization more difficult, in turn further radicalizing politics.“Two: Monetary policy challenges. Falling and low inflation rates over the past 40 years were, among other reasons, the result of central banking having become less influenced by politics and globalization reducing the bargaining power of labor. In the face of persistently low inflation and central banks failing to meet their inflation target, there’s a risk that central bankers are blamed from all sides of the political spectrum—laying the ground for a repoliticization of monetary policy. Besides this, the challenge of how to exit QE [quantitative easing] in the context of a slowing global economy is becoming ever more daunting.“As a consequence of these significant risks and uncertainties, we are taking a very cost-conscious approach to 2020 and beyond.” To contact the authors of this story: Francine Lacqua in London at flacqua@bloomberg.netJason Kelly in New York at jkelly14@bloomberg.netDaniel Schaefer in Frankfurt at dschaefer36@bloomberg.netTo contact the editor responsible for this story: Christine Harper at charper@bloomberg.net, Jon AsmundssonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Carlyle, T&D Buy Majority Stake in AIG Firm for $1.8 Billion

    (Bloomberg) -- Carlyle Group LP is doubling down on insurance assets, increasing its stake in an American International Group Inc.-owned firm.Carlyle and T&D Holdings Inc., the parent of one of Japan’s largest life insurers, agreed to buy the majority of Fortitude Group Holdings for about $1.8 billion, according to a statement Monday. Carlyle, with a small group of investors, agreed to increase their ownership to 71.5%. T&D also bought 25%.Private equity firms including Carlyle, Apollo Global Management Inc. and Blackstone Group Inc. have been building their own insurance vehicles in recent years. Apollo helped turn annuity seller Athene Holding Ltd. into a business with a market value of $7.8 billion. Funds affiliated with Blackstone teamed up with other investors back in 2017 to buy annuity-seller Fidelity & Guaranty Life.Carlyle is using a newly created fund for the deal. AIG will continue to retain a 3.5% stake.AIG Chief Executive Officer Brian Duperreault has been working to turn around the insurer, which had been battling higher than expected costs on old policies. The Fortitude Re transaction has helped segment off some of AIG’s policies that were held in runoff. Monday’s deal is another step in the process of separating Fortitude Re and helps AIG strengthen its balance sheet, Duperreault said in the statement.The initial deal Carlyle did with AIG in August 2018 came with an agreement that gave the behemoth investment firm $6 billion from Fortitude to put in its private equity, credit and real asset groups.Carlyle has deep ties to AIG. The firm hired Brian Schreiber, the top dealmaker at AIG, three years ago as co-head of the financial services team.The transaction is expected to close in mid-2020.Willkie, Farr & Gallagher LLP was legal adviser to AIG. Carlyle used Debevoise & Plimpton LLC and Oliver Wyman as advisers. T&D used Citigroup Inc, Nishimura & Asahi, King & Spalding LLP and Appleby as advisers. Fortitude Re tapped Sidley Austin LLP for advice.(Adds advisers in final paragraph)To contact the reporters on this story: Heather Perlberg in Washington at hperlberg@bloomberg.net;Katherine Chiglinsky in New York at kchiglinsky@bloomberg.netTo contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Alan Mirabella, Josh FriedmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • TEST Business Wire Releases

    The Carlyle Group and T&D Holdings to Acquire Majority Interest in Fortitude Re from AIG for Approximately $1.8 Billion

    American International Group, Inc. (NYSE: AIG), The Carlyle Group (NASDAQ: CG) and T&D Holdings (TYO: 8795) announced today that a newly created Carlyle-managed fund, together with T&D, have partnered to acquire from AIG a 76.6 percent ownership interest in Fortitude Group Holdings, whose group companies operate as Fortitude Re, for approximately $1.8 billion. After closing, ownership interests in Fortitude Re will include Carlyle and its fund investors at 71.5 percent (including the 19.9 percent stake previously acquired by Carlyle in November 2018), T&D at 25 percent and AIG at 3.5 percent. AIG will receive a $500 million non-pro-rata distribution, which if not paid by the later of May 13, 2020 or transaction close will result in an additional payment from the new Carlyle-managed fund and T&D based on their Fortitude Re ownership interest.

  • Luxury fashion is back in vogue with private equity
    MarketWatch

    Luxury fashion is back in vogue with private equity

    Luxury fashion has been snubbed by buyout groups in recent years but now it’s back in vogue. The acquisition of Escada, the German fashion house, by Beverly Hills-based buyout group Regent marks the latest deal in a sector which had fallen out of favor with private-equity firms in recent years. The deal came just weeks after Mandarin Capital Partners snapped up a 70% stake in Italian fashion accessories specialist Eurmoda Group.

  • PR Newswire

    The New Terminal One at JFK Continues Progress with Approval of Proposed Lease by The Port Authority of New York and New Jersey's Board

    NEW YORK, Nov. 21, 2019 /PRNewswire/ -- The New Terminal One Team welcomes The Port Authority of New York and New Jersey's board authorization to enter into a lease agreement to design, construct, finance, operate and maintain The New Terminal One at JFK International Airport (JFK). "The Port Authority's board authorization enables the delivery of a world-class terminal to progress Governor Cuomo's Vision for JFK and drive New York State's nation-leading MWBE participation for the Project beyond $1 billion," said Dr. Gerrard P. Bushell, Executive Chair of The New Terminal One.

  • Hillhouse Capital to Bid for Thyssenkrupp Elevator Unit
    Bloomberg

    Hillhouse Capital to Bid for Thyssenkrupp Elevator Unit

    (Bloomberg) -- Hillhouse Capital, the Asian private equity firm started by Yale endowment alumnus Zhang Lei, is among the bidders for Thyssenkrupp AG’s elevator unit as competition heats up for the prized asset, people familiar with the matter said.The Hong Kong-based investment firm made a non-binding offer this month, according to the people, who asked not to be identified because the information is private. Its bid valued the business at more than 15 billion euros ($17 billion), two of the people said. Hillhouse is competing against a number of other buyout firms and strategic bidders, a list that’s expected to be whittled down to a handful in the next few weeks, they said.Hillhouse could seek to team up with other bidders and offer help expanding the business in the crucial Chinese market, two of the people said. It has expressed interest in partnering with Finnish elevator Kone Oyj, though so far the latter is reluctant, according to two of the people.Representatives for Hillhouse, Thyssenkrupp and Kone declined to comment.Hillhouse, which raised $10.6 billion for its third buyout fund last year, was started in 2005 with funding from Yale’s endowment. It’s known for its savvy in marrying consumer products with technology and backing promising startups early. Airbnb Inc. and Chinese internet giants Tencent Holdings Ltd. and JD.com Inc. are among the companies it has invested in.The firm has also been pushing into larger deals. Hillhouse was part of an investor group that agreed in 2017 to buy Singapore-based warehouse operator Global Logistic Properties Ltd. for S$16 billion ($12 billion), which was Asia’s biggest-ever private equity buyout at the time it was announced.Ailing Thyssenkrupp is exploring a sale or an initial public offering of the elevator business, its most valuable unit, to boost its equity cushions and cash pile to fund a turnaround of the steel-to-automotive conglomerate. The German company is still debating whether to sell a majority or minority stake in its crown jewel, the people said.Brazilian-American investment firm 3G Capital and a range of other suitors have placed indicative bids for the elevator unit recently, Bloomberg News reported last week.Kone partnered with CVC Capital Partners to make a joint offer, while Blackstone Group Inc. submitted a bid with Carlyle Group LP and Canada Pension Plan Investment Board, people with knowledge of the matter said at the time. Brookfield Asset Management Inc. and a separate consortium of Advent International, Cinven and the Abu Dhabi Investment Authority lodged their own bids, according to the people.The German government has been tightening its scrutiny on acquisitions by overseas investors in key sectors. It’s lowered the threshold for examining foreign takeovers and widened the scope of deals that can be reviewed following a public backlash over deals including Midea Group Co.’s purchase of robot maker Kuka AG in 2016.In August last year, Chancellor Angela Merkel’s cabinet vetoed a Chinese deal for the first time, blocking the takeover of German machine tool manufacturer Leifeld Metal Spinning AG by Yantai Taihai Group. A German state-owned bank also bought 20% stake of 50Hertz Transmission GmbH, one of the country’s biggest electricity networks, on behalf of the government in a move that foiled a potential purchase by State Grid Corp. of China.(Updates with other bidders in ninth paragraph.)\--With assistance from William Wilkes and Niclas Rolander.To contact the reporters on this story: Aaron Kirchfeld in London at akirchfeld@bloomberg.net;Eyk Henning in Frankfurt at ehenning1@bloomberg.net;Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.netTo contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, ;Kenneth Wong at kwong11@bloomberg.net, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Carlyle Blasted by Elizabeth Warren Over Taylor Swift Songs

    (Bloomberg) -- The private equity industry has once again drawn the ire of Senator Elizabeth Warren -- this time over its financing of a record label.Carlyle Group LP helped finance celebrity manager Scooter Braun’s acquisition of Big Machine Label Group LLC, pop star Taylor Swift’s former record label, where she recorded her first six albums. Swift has claimed the label has blocked her efforts to buy back her music and from performing her biggest hits in public. Big Machine has disputed Swift’s version of events.In a tweet last week, Swift appealed to the Washington-based buyout firm for help addressing the situation after failing to resolve the controversy privately. Warren, a Democratic candidate for president, responded on Saturday and said she has a plan to rein in private equity firms.The Warren tweet follows an earlier one by U.S. Representative Alexandria Ocasio-Cortez, a New York Democrat, who said that the private equity industry is holding Swift’s music “hostage” and also called for greater limits on the industry.Carlyle has been involved with Braun since at least 2017, and helped finance his acquisition of Big Machine in June with an equity investment. The firm has no operational control of the label.Warren also blasted private equity firms in a blog post in July, when she proposed overhauling the industry as part of her plan to regulate Wall Street. She proposed a number of changes, including holding the firms responsible for certain pension obligations of the companies they buy and limiting their ability to pay out dividends.(Adds detail of Carlyle’s investment in penultimate paragraph.)To contact the reporter on this story: Jenny Surane in New York at jsurane4@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Daniel Taub, Matthew G. MillerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Taylor Swift’s Carlyle Plea Showcases Private Equity’s Reach

    (Bloomberg) -- Taylor Swift’s feud with her record label reveals a little-known fact about the entertainment business: the outsized role private equity plays in funding its biggest stars.Swift asked Carlyle Group in a tweet on Thursday to help her as she battles to secure ownership of albums she recorded with her previous label. The Washington-based buyout firm helped finance celebrity manager Scooter Braun’s acquisition of Big Machine Label Group LLC.Carlyle found itself in the middle of the spat because, along with alternative asset managers including TPG and Blackstone Group Inc., it has extended its reach into show business in recent years. The industry, known for acquiring staid corporations, has been taking stakes in everything from record producers to major talent agencies.There’s a lot for buyout firms to do in music as the industry recovers from decades of decline. The value of song libraries has jumped in recent years, buoyed by major labels making acquisitions and private investors buying in, and spending on music has increased thanks to subscription streaming services like Spotify Technology SA.Blackstone owns Sesac Holding and The Harry Fox Agency Inc., two groups that disburse royalties, while TPG was an investor in Spotify.One of the biggest deals last year was Sony Corp.’s purchase of EMI Music Publishing for $2 billion. The seller was a consortium led by Abu Dhabi’s Mubadala Investment Co. The deal allowed Sony to get its hands on a catalog of 2.1 million songs from Beyonce, Carole King and other artists.And firms are interested in entertainment far beyond music.TPG owns a large stake in Creative Artists Agency LLC, the talent agency and show business packaging firm whose clients include Will Smith and Jennifer Aniston, and has also invested in Vice Media Inc. and STX Entertainment, the studio behind “Hustlers.” Silver Lake owns part of Endeavor Group Holdings, the parent company of talent agency WME and operator of the Ultimate Fighting Championship.Blackstone, the world’s biggest alternative asset manager, bought into the TV network YES, as well as Merlin Entertainment, the owner of Legoland. The latter deals point to the firm’s interest in the events business.“We’re also a big fan around live entertainment because even though many things are moving online, people still need physical activities, things they want to do,” Blackstone President Jon Gray said on an earnings call last month. Endeavor called off a planned initial public offering in September.Carlyle has been involved with Braun since at least 2017, when it bought a minority stake in his Ithaca Holdings. Carlyle then helped finance Braun’s acquisition of Big Machine in June with an additional equity investment. The firm has no operational control. A representative for Carlyle declined to comment.Carlyle also owns an array of entertainment-related companies. They include Content Partners LLC, an asset management firm and investment fund that helps finance film, television and music companies by purchasing their cash flows, and Apex Parks Group, the operator of U.S. amusement parks.The pop star didn’t criticize Carlyle, only appealing for its help. But her conspicuous mention of the company put a spotlight on an industry her legions of young fans normally wouldn’t have reason to pay attention to. Google searches for Carlyle Group surged after her tweet.And critics of private equity — among them Representative Alexandria Ocasio-Cortez, the New York Democrat — seized on the tweet as further evidence of the industry’s harm to society.\--With assistance from Nick Turner.To contact the reporters on this story: Heather Perlberg in Washington at hperlberg@bloomberg.net;Lucas Shaw in Los Angeles at lshaw31@bloomberg.netTo contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Melissa Karsh, Alan MirabellaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Don't be a pest: Carlyle Group co-founder and billionaire David Rubenstein on asking for money
    American City Business Journals

    Don't be a pest: Carlyle Group co-founder and billionaire David Rubenstein on asking for money

    The room was packed with the CEOs of companies that Case and his fund have invested in, as his semi-regular bus tour and investment ethos has grown into two formalized funds with big-name backers, including Rubenstein, Google (NASDAQ: GOOG) CEO Eric Schmidt, Spanx founder Sara Blakely, fellow Revolution co-founder Ted Leonsis, the Koch family and former eBay and Hewlett-Packard chief Meg Whitman. "You shouldn’t ever be saying 'I am sorry to ask you for money.' Because if you are sorry to ask somebody for money don’t ask the person for money," Rubenstein said. "There is a big difference between being a pest and bothering somebody and then being somewhat persistent," Rubenstein said.

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    Yahoo Finance

    Taylor Swift's ex-label refutes claims of 'tyrannical control' over her work

    When Taylor Swift takes the stage at the American Music Awards on Nov. 24 to accept the Artist of the Decade award, her performance could be anything but career-spanning.

  • Moody's

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    Moody's Investors Service (Moody's) has downgraded Array Canada Inc.'s (Array) corporate family rating (CFR) to B3 from B2, probability of default rating to B3-PD from B2-PD, and senior secured bank credit facility to B3 from B2. "The downgrade reflects our expectation that Array's leverage will remain elevated above 8x over the next 12 months as a result of a decline in projected EBITDA due to weaker demand from core cosmetic customers" said Moody's Analyst Jonathan Reid.

  • Benzinga

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    Apollo Aviation Group, which is now part of Carlyle Aviation Partners Ltd., has agreed to pay a $210,600 civil penalty to settle 12 alleged violations of the Sudanese Sanctions Regulations, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) said. The violations began on July 30, 2013, when Apollo leased two aircraft engines to a company in the United Arab Emirates, which in turn subleased the engines to a Ukrainian airline that installed them on an aircraft leased to Sudan Airways. At the time of the violations, Sudan Air was listed on OFAC's Specially Designated Nationals and Blocked Persons (SDN) List for its ownership by the Sudanese government.

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    American City Business Journals

    ‘One plus one equals three’: Here's why some tech companies are shifting toward co-CEOs

    Cambridge-based edX recently promoted its COO to co-CEO, joining WeWork, SAP and many Massachusetts-based companies with two occupants in the corner office. The non-traditional organizational structure provides a form of backup, but can also open the door to unclear visions and communication issues, experts say.