Emerging Sovereign Group buys back stake from Carlyle Group

The management team of hedge fund manager Emerging Sovereign Group will buy back the 55% ownership stake it sold to Carlyle Group in 2011.

The deal is expected to close in the third quarter, said a Carlyle spokesman, who declined to comment on terms of the equity stake buyback.

ESG’s management team, led by J. Kevin Kenny Jr., co-founder, managing partner and chief investment officer, has been interested for “some time” in regaining its independence from Carlyle, the spokesman said, adding that the buyback decision was “mutual.”

Mr. Kenny could not be reached by press time for comment.

Carlyle Group will focus its energies on supporting the growth of its credit investment strategies, the Carlyle spokesman said.

“ESG is a strong organization, has been a terrific partner to Carlyle and will thrive as an independent business. Assets under management have grown from $1.25 billion to $3.5 billion during the time of our investment. We wish Kevin Kenny and his team continued success in the future,” said William E. Conway Jr., co-CEO of Carlyle, in a statement.