Mubadala Development Company, the Abu Dhabi-based strategic development and investment company, and The Carlyle Group, a global alternative asset manager, today announced an agreement for Mubadala to make an additional investment in the Carlyle general partnership. In exchange for the $500 million investment, 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. Additional financial details were not disclosed.

In September 2007, Carlyle sold a 7.5 percent stake in its general partnership to Mubadala.

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 M. 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 partnership has also included growing cooperation on identifying investment opportunities in the Middle East and North Africa as well as increasing collaboration in industry verticals such as healthcare, aerospace and technology.

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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