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Carlyle and OppenheimerFunds form new JV

The Carlyle Group and OppenheimerFunds have formed a new joint venture that will provide private credit opportunities for high-net-worth individuals and advisers mostly focused on the U.S. market. Mark Jenkins, head of global credit for The Carlyle Group and Kamal Bhatia, head of investment solutions for OppenheimerFunds, will co-lead the JV, which will begin operating in 2018.


NEW YORK, Oct. 16, 2017 /PRNewswire/ — OppenheimerFunds and The Carlyle Group today announced a new joint venture, which will provide global private credit opportunities for high net worth (HNW) investors and advisors primarily focused on the U.S. market.

The JV, which will begin operating in 2018, brings together Carlyle’s core global credit expertise with OppenheimerFunds’ extensive product structuring and distribution capabilities to build an alternative credit platform for HNW clients and advisors. The platform will aim to deliver long-term income solutions not generally available to accredited investors.

Institutional investors have traditionally been able to capitalize on the unique market premium of non-public investing strategies. Providing the same access to the non-institutional segment will add another source of diversification for investors seeking greater risk-adjusted returns in a low yield and rising rate environment.

“I’m excited about our partnership with Carlyle and our entry into the private credit space,” said Art Steinmetz, Chairman and CEO of OppenheimerFunds. “This venture joins two marquee names in the industry to provide access to a private credit solution for HNW clients and is a great complement to our active mutual funds and beta solutions strategies.”

The venture will be led by Co-Heads Kamal Bhatia, Head of Investment Solutions for OppenheimerFunds, and Mark Jenkins, Head of Global Credit for The Carlyle Group. The joint venture’s initial focus will include allocation and underwriting across investments in opportunistic credit, direct lending, distressed transactions and structured credit assets in the U.S., Europe and Asia.

“Carlyle and Oppenheimer prize innovation and a dedication to delivering for investors over the long term,” said Jenkins. “We look forward to leveraging our firms’ strengths to deliver important diversification in the less-liquid credit space to the large high net worth segment.”

Bhatia added, “There are tremendous synergies between Carlyle’s global credit expertise and OppenheimerFunds’ client engagement and distribution platform. HNW investors want income solutions that require the hard work of complex portfolio construction and hands-on risk management in a low return world given their wealth profile. We will approach the market as one team.”

About OppenheimerFunds
OppenheimerFunds, Inc., a leader in global asset management, is dedicated to providing solutions for its partners and end investors. OppenheimerFunds, including its subsidiaries, manages more than $243 billion in assets for over 13 million shareholder accounts, including sub-accounts, as of September 30, 2017.

Founded in 1959, OppenheimerFunds is an asset manager with a history of providing innovative strategies to its investors. The firm’s 16 investment management teams specialize in equity, fixed income, alternative, multi-asset, and revenue-weighted-ETF strategies, including ESG. OppenheimerFunds and its subsidiaries offer a broad array of products and services to clients, who range from endowments and sovereigns to financial advisors and individual investors. OppenheimerFunds and certain of its subsidiaries provide advisory services to the Oppenheimer family of funds, and OFI Global Asset Management offers solutions to institutions. The firm is also active through its Philanthropy & Community initiative: 10,000 Kids by 2020, reaching children with introductions to math literacy programs.


About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $170 billion of assets under management across 299 investment vehicles as of June 30, 2017. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,550 people in 31 offices across six continents.