The Carlyle Group said Friday that it has acquired Churchill Financial, a middle market lender, from Olympus Partners. Financial terms weren’t announced.
Global alternative asset manager The Carlyle Group announced today that it has acquired Churchill Financial, LLC (“Churchill”), a debt capital provider to middle-market companies, from Olympus Partners. As part of the transaction, 13 investment professionals have joined Carlyle’s Global Market Strategies business and will continue managing a $1.25 billion AUM collateralized loan obligation (CLO) focused on senior loans to middle-market companies. The equity of the CLO will continue to be owned by Churchill Financial Group, a portfolio company of Olympus Partners. Terms of the transaction were not disclosed.
Mitch Petrick, Managing Director and Head of Carlyle’s Global Market Strategies business, said, “The Churchill transaction enhances the capabilities of the Global Market Strategies platform at an attractive time for middle-market lending. With the addition of this experienced and talented team, led by Ken Kencel, Carlyle can now provide comprehensive financing solutions to the middle market. We will continue to look for ways to develop innovative strategies to address the needs of our investors.”
“Over the past 18 months since Olympus acquired the business, Churchill has successfully capitalized on the attractive senior secured financing markets for middle-market companies. It has funded more than $1 billion in loans at attractive rates of return to companies that have successfully maneuvered through the pitfalls of the recent economic crisis and demonstrate strong credit profiles,” commented Paul Rubin, a partner at Olympus. “Carlyle offers a great platform for the Churchill team to continue to grow its leading presence in middle-market lending.”
The addition of Churchill adds to Carlyle’s capabilities across the Global Market Strategies platform, which include mezzanine and energy mezzanine loans, high yield and structured credit, distressed equity and debt, long/short credit, and emerging market equities and macroeconomic strategies with $22 billion in assets managed by 115 investment professionals in New York, Washington, DC, Los Angeles, Hong Kong, and London as of July 1, 2011.
Mr. Kencel has been named a Managing Director of Carlyle, reporting to Mr. Petrick, and will lead the Churchill team, which will continue to manage the existing Churchill CLO assets with the ability to leverage the Churchill platform going forward.
“We are excited to join the Carlyle Global Market Strategies investment platform. With the global resources of The Carlyle Group, we believe that we can successfully build upon our franchise as a provider of financing for middle-market companies,” said Mr. Kencel.
Since its founding in 2006, Churchill Financial has served as agent on more than $7 billion of senior credit facilities and completed more than 200 financing transactions. During this period, Churchill has committed more than $2.5 billion in debt capital to middle market companies. Based in New York, Churchill’s investment team has an average of more than 15 years of investment experience — focused exclusively on originating, underwriting, documenting and monitoring debt investments in middle-market companies.
Carlyle was represented by Simpson Thacher & Bartlett LLP and Churchill was represented by Orrick, Herrington & Sutcliffe, LLP.
* * * * *
About The Carlyle Group
The Carlyle Group is a global alternative asset manager with more than $153 billion of assets under management across 86 funds and 49 fund of fund vehicles as of July 1, 2011. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has developed expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,100 people in 34 offices across six continents. Web: www.carlyle.com; Case Studies: www.carlylegroupcreatesvalue.com; Video: www.youtube.com/OneCarlyle
About Olympus Partners
Founded in 1988, Olympus Partners is a clearly focused private equity firm which provides equity capital for middle market management buyouts and for companies needing capital for expansion. Olympus is an active, long-term investor across a broad range of industries, including financial services, healthcare services, consumer products, restaurants and business services. Olympus Partners manages in excess of $3 billion on behalf of corporate pension funds, endowment funds and state-sponsored retirement programs.