The Carlyle Group Inc. - CG STOCK NEWS

TJC LP, a middle-market private equity firm, has announced the closure of its second continuation fund at $2.1 billion. This fund extends The Resolute Fund III, L.P. and includes an asset jointly owned with The Resolute Fund IV, L.P. The Continuation Fund acquired five portfolio companies from these funds, providing an opportunity for partners to achieve liquidity while allowing TJC more time and capital to accelerate growth of core portfolio assets.

The transaction was led by AlpInvest, a subsidiary of Carlyle (NASDAQ: CG), and included various secondary and primary investors. TJC offered existing partners options for full liquidity, rollover, or additional capital commitments. The fund was oversubscribed by new investors, demonstrating strong support for TJC's strategy. William Blair served as the exclusive financial advisor, while Latham & Watkins LLP provided legal counsel to TJC.

Unison has launched the innovative Equity Sharing Home Loan, allowing homeowners to access cash at below-market rates without selling assets or increasing debt. This new loan category combines the benefits of home loans and equity sharing agreements, offering interest-only, below-market monthly payments. Global investment firm Carlyle (NASDAQ: CG) has agreed to purchase up to $300 million of these loans.

The product aims to unlock the $32 trillion in U.S. home equity, especially for homeowners reluctant to refinance their low-interest first mortgages. It offers a fixed below-market interest rate for accessing home equity while allowing homeowners to benefit from potential home price appreciation. This versatile solution can be used for home renovations, debt consolidation, or securing financial futures.

Global investment firm Carlyle (NASDAQ: CG) has announced a strategic partnership with North Bridge ESG , committing up to $1 billion for C-PACE financing. This collaboration aims to address the evolving needs of the commercial real estate market on a larger scale. C-PACE is a fixed-rate financing option secured by local property assessments, increasingly sought after for its benefits to commercial real estate capital stacks.

The partnership leverages Carlyle's expertise in strategic growth, real estate, and asset-backed finance, enabling North Bridge to expand its C-PACE financing services to institutional borrowers in major markets nationwide. This transaction, involving Carlyle's Credit Strategic Solutions and Private Credit teams, represents the largest commitment to C-PACE financing to date, positioning North Bridge to lead the industry's transformation.

Sedgwick, a global leader in claims management, has announced a strategic partnership with Altas Partners. This investment values Sedgwick at approximately $13.2 billion, a significant increase from its $6.7 billion valuation in 2018 when Carlyle (NASDAQ: CG) made its initial investment. Altas has committed to invest $1 billion in equity as part of the transaction.

Carlyle will maintain its control position, with Stone Point Capital also remaining as an investor. The partnership aims to foster Sedgwick's continued growth, expand its global footprint, and enhance its service capabilities. In 2023, Sedgwick handled over 8 million claims with fiduciary responsibility for claim payments totaling more than $33 billion. The transaction is expected to close in Q4 2024, subject to customary conditions.

Advance Auto Parts (NYSE: AAP) has announced the sale of its Worldpac subsidiary to Carlyle (NASDAQ: CG) for $1.5 billion in cash. The transaction, expected to close by year-end, aims to simplify Advance's structure and focus on its core blended box business. Net proceeds of approximately $1.2 billion will be used to strengthen the balance sheet and invest in the business.

Worldpac, an automotive parts wholesale distribution business, generated $2.1 billion in revenue and $100 million in EBITDA over the last twelve months. The sale is part of Advance's strategic review to improve productivity and position the company for future growth. Carlyle views this acquisition as an opportunity to leverage its experience in industrial carve-outs, having invested ~$13 billion in similar transactions over the past two decades.

Baxter International Inc. (NYSE:BAX) has announced a definitive agreement to sell its Kidney Care segment, to be named Vantive, to Carlyle for $3.8 billion. This strategic move is part of Baxter's ongoing business transformation aimed at enhancing performance and creating value for stakeholders. The transaction is expected to close in late 2024 or early 2025, subject to regulatory approvals and other conditions.

Key points:

• Baxter will receive approximately $3.5 billion in cash, with estimated net after-tax proceeds of $3 billion
• Proceeds will be used to reduce Baxter's debt
• Vantive, a leader in global kidney care, had 2023 revenues of $4.5 billion
• Post-divestiture, Baxter targets 4-5% annual operational sales growth and an adjusted operating margin of about 16.5% for 2025

Houlihan Lokey (NYSE:HLI) has agreed to acquire Waller Helms Advisors, an independent advisory firm specializing in insurance and wealth management sectors. The acquisition, expected to complete by December 31, 2024, will double the size of Houlihan Lokey's Financial Services Group. Waller Helms, founded in 2014, has advised on over 230 transactions worth more than $40 billion. The deal will add nearly 50 financial professionals, including 13 Managing Directors, to Houlihan Lokey's team. James Anderson, CEO of Waller Helms, will join as Global Co-Head of the Financial Services Group. The combined entity will rank as the No. 1 advisor for global M&A transactions in 2023 in the insurance, asset management, and financial services sectors (excluding depositories).

Carlyle and KKR have agreed to acquire a $10.1 billion prime student loan portfolio from Discover Financial Services. The acquisition, led by Carlyle's Credit Strategic Solutions team and KKR's asset-based finance strategy, showcases their expertise in private student loans and asset-backed finance. This transaction allows Discover to simplify its operations and business mix.

The deal is expected to close by the end of 2024, subject to customary conditions. Monogram , a Carlyle portfolio company, will manage the portfolio, while Firstmark Services, a Nelnet subsidiary, will service the loans. This strategic move highlights the evolving lending landscape and the increasing role of private markets in providing flexible solutions to financial institutions.

Manulife Investment Management (Manulife IM) has announced the closing of approximately US$810 million in commitments for its Manulife Private Equity Partners II, L.P. (the Fund). This is the second private equity fund of funds raised by Manulife IM, aimed at providing investors with greater exposure to the growing private equity market. The Fund was seeded with a portfolio selected in partnership with AlpInvest, a subsidiary of Carlyle (NASDAQ: CG), and includes private equity fund interests and co-investments in North American buyout funds managed by over 30 leading private equity managers. The Fund is managed by Richard Tarr, Managing Director, Private Equity Funds at Manulife IM. Globally, Manulife IM's private equity and credit platform manages over US$25 billion in assets.