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News Release Details

The Carlyle Group to Purchase 55% Stake in Emerging Sovereign Group,an Emerging Markets Investment Manager

Jun 14, 2011

 Julian Robertson to Maintain Investment and Ownership StakeNew York, NY -- Global alternative asset manager The Carlyle Group and Emerging Sovereign Group (ESG) today announced that Carlyle has agreed to purchase a 55% stake in ESG, a New York-based emerging markets equities and macroeconomic strategies investment manager, in exchange for cash, an ownership interest in Carlyle and performance-based contingent payments. The ESG principals will reinvest a majority of the initial cash proceeds from the transaction into the ESG funds. Terms of the transaction, which is expected to close by July 1, were not disclosed. The transaction has already received the requisite fund consents.

Mitch Petrick, Managing Director and Head of Carlyle’s Global Market Strategies business, said, “Emerging markets is a core competency of Carlyle’s corporate private equity and real assets franchise and a significant untapped opportunity for Carlyle’s global market strategies platform. ESG has a stable, proven team, and we believe the right strategies to capture a multi-decade trend of exceptional growth in emerging markets. With this strategic partnership, we expect to leverage Carlyle’s local presence, industry and operating knowledge, and senior advisor network in emerging markets with ESG’s public markets franchise to seek to generate superior returns.”

Kevin Kenny, Managing Partner and Founder of ESG, said, “We believe this partnership with Carlyle will strengthen our firm and benefit our investors. We are extremely fortunate to have benefitted from Tiger Management and Julian H. Robertson’s unwavering support and guidance since our inception and are particularly excited to have their continued sponsorship and participation going forward.”

Julian H. Robertson, Chairman and Chief Executive officer of Tiger Management LLC, said, “For nearly a decade, we’ve been privileged to work closely with Kevin Kenny and his team of talented emerging market specialists. The support that Emerging Sovereign Group has now earned from the distinguished Carlyle Group is testimony to the high regard in which Kevin and his associates are held. We are delighted with this formidable new association and proud to be a part of it.”

ESG was established in 2002 by Kevin Kenny with an initial investment from Julian H. Robertson through Tiger Management. Today, ESG has four emerging markets equities and macroeconomic strategies. Tiger Management will maintain a significant investment in the ESG funds and an ownership interest in ESG post-closing. Kevin Kenny will continue as Chief Investment Officer and manage the day-to-day operations, all investment decisions and portfolio construction.

Carlyle’s Global Market Strategies business comprises an array of long/short credit hedge funds, structured credit, mezzanine and distressed products – 39 funds with $20.6 billion in assets managed by 68 investment professionals in New York, Washington, DC, Los Angeles, Hong Kong and London as of December 31, 2010.

Gleacher & Company and Seward & Kissel served as financial and legal advisors to ESG, respectively. Simpson Thacher & Bartlett served as legal advisor to Carlyle.

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About The Carlyle Group
The Carlyle Group is a global alternative asset manager with $106.7 billion of assets under management committed to 84 funds as of December 31, 2010. Carlyle invests across three segments - corporate private equity, real assets and global market strategies - in Africa, Asia, Australia, Europe, North America and South America focusing on  real estate, aerospace & defense, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 990 people in 19 countries. Web:

About Emerging Sovereign Group
Emerging Sovereign Group (ESG), a global emerging markets investment manager with $1.6 billion of assets under management as of May 31, 2011, was founded in April 2002 with seed capital from Julian H. Robertson of Tiger Management. Today, ESG has a 26-member team across offices in New York and London and manages emerging market macro, long/short equity and other strategic global macro strategies.