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Carlyle reports big jump in Q4 earnings; Buyouts identifies 12 emerging managers to watch

CDPQ sells nearly $3 billion portfolio of PE fund stakes to Ardian.

Good morning, Hubsters. MK Flynn here with today’s Wire.

First up, Carlyle reported a big jump in fourth-quarter earnings and a record year for the firm. “In the big picture, we are looking for strategic adjacencies, new markets that we can scale in, and businesses that are additive to our fee-related earnings,” CEO Kewsong Lee told the Financial Times. “The areas with the most opportunities for us are in credit and in investment solutions.”

Emerging managers. Over at Buyouts, Chris Witkowsky and Kirk Falconer have identified 12 emerging managers they’re keeping close tabs on. LPs are drawn to first-timers formed in spinouts from big, brand-name PE firms. Among the newbies is Avance Investment Management, which has a strategy that mirrors the experience of its founders, David Perez, Luis Zaldivar and Erik Scott, all veterans of Palladium Equity Partners. Avance acquires control stakes in family- and founder-owned lower-mid-market companies in sectors, such as business services and consumer. Another is BayPine, a tech-focused firm with top principals David Roux, a founder and former co-CEO and chairman of Silver Lake; and Anjan Mukherjee, an ex-senior managing director with Blackstone. And there’s healthcare PE firm Patient Square Capital, founded by Jim Momtazee, formerly the head of KKR’s Americas healthcare group. Read the whole story for more.

Secondaries. Canadian pension system Caisse de dépôt et placement du Québec sold a nearly $3 billion portfolio of private equity fund stakes to Ardian, sources told Buyouts. “The transaction, one of the largest traditional LP portfolio sales, was among a slew of such transactions that helped drive total secondaries volume to more than $130 billion,” writes Chris. “Traditional LP portfolio sales came back in a big way in the second half of 2021 as buyers sought diversity away from the concentrated deals they made earlier in the year.”

This week the American Investment Council is welcoming Grain Management, a Washington, D.C.-based private investment firm focused on the global communications sector, as its 90th member. “Among the various points of collaboration, Grain and AIC are wholly aligned on the mission to advance innovation, job creation and economic growth in the US,” said David Grain, the founder and CEO of the PE firm. “We look forward to advancing successes alongside AIC through this new affiliation.” Check out my recent Q&A with Grain.

Deal of the Year. The deadline is coming up quick – Friday, Feb. 11. So get your candidates in now. Send them to Chris at cwitkowsky@buyoutsinsider.com. Visit here for more info about the awards.

That’s it for now. Until tomorrow, MK