Carlyle Investment Management L.L.C. is a key subsidiary under the Carlyle Group, one of the world’s largest private equity firms. Carlyle adopts strategies like leveraged buyouts, growth capital, real estate, hedge funds and more to pursue high returns. It has invested in many landmark deals over the years, like the acquisition of Dunkin’ Brands and deals with pharmaceutical companies. This article will analyze Carlyle’s investment strategies and recap some of its major investments.
Carlyle favors leveraged buyouts to gain controlling stakes
As one of the private equity pioneers, Carlyle frequently utilizes leveraged buyouts to take controlling interests in promising companies. By using borrowed money to fund acquisitions, Carlyle can magnify returns while exerting influence over strategy and operations. For example, in 2020, Carlyle announced a $4.3 billion leveraged buyout of nutrition and wellness manufacturer Univar Solutions in partnership with plans to accelerate growth.
Carlyle targets acquisitions in healthcare and pharma sectors
The healthcare and pharmaceutical industries have been a prime target for Carlyle over the years. In 2020, Carlyle teamed up with Hellman & Friedman to acquire AdaptHealth in a $2.1 billion deal. AdaptHealth provides home medical equipment and related services. Carlyle also invested $490 million into Piramal Pharma’s Contract Development and Manufacturing Organization.
Carlyle partners with companies for growth capital investments
In addition to buyouts, Carlyle also provides growth capital for companies to expand operations, enter new markets and develop technologies. For example, in 2021 Carlyle invested over $100 million into NeoGenomics, a leading cancer diagnostics company. The growth capital will help NeoGenomics scale up capabilities and capacity for comprehensive genomic testing services.
Carlyle explores investments in emerging sectors like fintech
As a flexible investment firm, Carlyle continuously evaluates new sector opportunities like financial technology. In 2021, Carlyle purchased a minority stake in Nubank, the largest fintech startup in Latin America offering digital banking services. This $500 million investment came amid Nubank’s preparations for a US IPO to raise further growth funding down the line.
In summary, Carlyle leverages various investment strategies like leveraged buyouts, growth capital and sector-focused plays to pursue attractive risk-adjusted returns. It has cultivated an extensive portfolio in healthcare and consumer products while keeping an eye on emerging sectors like fintech. As a private equity leader, Carlyle will continue targeting promising companies worldwide.