Mubadala Pours $500M Into The Carlyle Group

Abu Dhabi investment fund Mubadala is pouring $500 million into buyout shop the Carlyle Group, increasing its stake to help expand product offerings to investors, Reuters reported. Mubadala took a 7.5% stake in Carlyle in 2007. In return for the newest investment, Mubadala will get a combination of equity and convertible subordinated notes, Reuters said.

(Reuters) – Abu Dhabi investment fund Mubadala said on Thursday it is raising its stake in The Carlyle Group by $500 million to expand product offerings to the U.S group’s investors.

Mubadala, which took a 7.5 percent stake in Carlyle in September 2007, will get in return a combination of convertible subordinated notes and additional equity in Carlyle, according to a statement from Mubadala.

“We are confident in Carlyle’s ongoing success as a global alternative asset manager and are pleased to support their strategic initiatives, including product and geographic expansion,” Mubadala Chief Executive Khaldoon al Mubarak said in the statement.

The two firms have collaborated across a number of industry sectors since the initial investment in 2007, identifying investment opportunities in the Middle East and North Africa.

The partnership has also collaborated in healthcare, aerospace and technology.

Goldman Sachs acted as financial advisor to Mubadala while J.P. Morgan Securities served as Carlyle’s financial advisers. (Reporting by Stanley Carvalho, editing by Reed Stevenson)