Mubadala paid US$1.35bn in cash for the 7.5% minority interest, which has no associated voting rights and is subject to value-related protective rights. Carlyle said that the stake represented a 10% liquidity discount to the parties agreed US$20bn valuation for Carlyle.
At the beginning of the year, US-based
Since then, Blackstone’s shares have traded well below the opening price, which, along with the credit crisis denting investor confidence, may delay any immediate move by Carlyle towards the public markets.
Carlyle co-founder David Rubinstein recently suggested that all big buyout firms would go public in the next few years, but Carlyle is likely to use Mubadala’s investment to fix a valuation if it does choose to IPO while realising value for management in the interim. The resources will also, said Rubinstein “add to Carlyle’s capital base, strategically expand our business and be used for additional investments”.
Mubadala’s investment also shows how much Carlyle has grown in value in recent years. The
In addition, Mubadala has committed US$500m as a limited partner in one of Carlyle’s funds, possibly