Mubadala Development Company, Abu Dhabi's state-backed investment fund, has agreed to make an additional investment of $500m in the American private equity firm Carlyle Group.
In exchange for the $500m 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% stake in its general partnership to Mubadala.
Mubadala CEO 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," Al Mubarak said.
Goldman Sachs served as exclusive financial advisor to Mubadala on this transaction. Citi and JP Morgan Securities served as financial advisors to The Carlyle Group.