Mubadala May Up Carlyle Stake

Mubadala Development Company, a sovereign wealth fund owned by the Abu Dhabi government, is considering increasing its stake in US-based private equity firm The Carlyle Group.

Reuters reported Mubadala, which bought a 7.5% stake in Carlyle for US$1.35bn last September, is looking to up its interest “slightly” as it plans further acquisitions in aerospace, energy and real estate.

Mubadala chief operating officer Waleed al-Muhairi said that the credit crunch has provided good opportunities for those with cash to invest.

Regarding Carlyle, he said: “We're extremely happy with our 7.5% and whether that increases slightly over time remains to be seen, but I don't think we're ever going to be a major or controlling shareholder of Carlyle.”

There is no indication, however, that Carlyle would be willing to sell any more of its management company. It sold a 5.5% stake to CalPERS (the California Public Employees' Retirement System) for an undisclosed amount in 2000.

Carlyle declined to comment.