Carlyle and CVC Agree to Pay UBS Performance Fees
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Carlyle (CG) and CVC have agreed to hand UBS (UBS) a some of their performance fees in return for the bank selling the firms' products to wealthy individuals, Alexandra Heal and Mercedes Ruehl of The Financial Times. Carlyle agreed to share carried interest from its evergreen secondaries fund while CVC agreed to let UBS share performance fees in an evergreen fund, people familiar with the matter told the Times.
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Analyst Views on CG
Wall Street analysts forecast CG stock price to rise
12 Analyst Rating
7 Buy
4 Hold
1 Sell
Moderate Buy
Current: 48.820
Low
53.00
Averages
67.91
High
83.00
Current: 48.820
Low
53.00
Averages
67.91
High
83.00
About CG
The Carlyle Group Inc. is a global investment company. The Company's segments include Global Private Equity, Global Credit and Carlyle AlpInvest. The Global Private Equity segment advises the Company's buyout, growth, real estate, infrastructure, and natural resources funds. The segment also includes the NGP Carry Funds advised by NGP Energy Capital Management (NGP). The Global Credit segment advises funds and vehicles that pursue investment strategies including insurance solutions, liquid credit, opportunistic credit, direct lending, asset-backed finance, aviation finance, infrastructure credit, cross-platform credit products, and global capital markets. The Carlyle AlpInvest segment advises global private equity programs that pursue secondary purchases and financing of existing portfolios, managed co-investment programs, and primary fund investments. The Carlyle AlpInvest segment helps investors meet their objectives through tailored portfolio construction and investment selection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Investment Opportunities Arise: Despite market challenges, Weinstein remains optimistic about major private credit managers like Ares, Apollo, and Blackstone, believing these firms will emerge as winners after market fluctuations, demonstrating confidence in the industry's future.
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- Asset Management Strategy Adjustment: Blackstone plans to increase its share buyback to 7% to meet redemption requests, demonstrating its response strategy under liquidity pressure while also reflecting a commitment to maintaining market confidence.
- Market Risk Intensification: Concerns over loan quality and AI-related risks have led to declines in stock prices for Blackstone and other alternative asset managers, indicating a weakening market confidence in the private credit industry.
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See More
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- Investor Redemption Situation: In the last quarter, Blackstone's flagship private credit fund BCRED allowed investors to withdraw 7.9% of their capital, approximately $650 million, leading to an 8.5% drop in the company's stock price on Tuesday morning, indicating heightened market concerns about private credit.
- Loan Quality Defense: Blackstone President Jon Gray highlighted that over 400 borrowers in BCRED achieved 10% EBITDA growth last year, expressing optimism about loan quality despite the bearish market sentiment, which he believes will help stabilize investor confidence.
- Market Reaction Analysis: Although Blackstone's measures to allow investor redemptions aimed to address liquidity needs, this move did not alleviate market tensions but instead sparked broader concerns about the private credit sector, particularly regarding loans in the software industry.
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