Carlyle Group Considers Taking A Stake In A Hedge Fund Manager – Report

(Reuters) – Private equity firm Carlyle Group CYL.UL may buy a stake in a hedge fund manager and is looking at raising two new debt funds as well as a $1 billion pool to buy small companies, Bloomberg said.

One of the firms Carlyle is talking to has as much as $5 billion in assets, the news wire said, citing three people briefed on the plans.

The report said the hedge fund unit and the two new debt funds would be overseen by Mitch Petrick, head of credit alternatives at Carlyle and a former top Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) executive.

Carlyle recently scrapped plans to sell defense and aviation company Arinc Inc after failing to find a buyer in the past six months, several people familiar with the matter told Reuters.

Carlyle could not immediately be reached for comments by Reuters outside regular U.S. business hours.

(Reporting by Krishna N. Das in Bangalore; Editing by Mike Nesbit)