Carlyle Group is acquiring the portfolio of assets from credit manager CBAM Partners in a $787 million deal expected to close in the first half of 2022.
The acquisition will add about $15 billion in assets under management to Carlyle's global credit platform to bring the manager's total credit AUM to $88 billion, a news release said Wednesday.
The majority of CBAM Partners' AUM is in collateralized loan obligations, which will increase Carlyle's CLO AUM to $48 billion, which Carlyle said will make it the world's largest CLO manager. Carlyle is using a combination of $615 million in cash from Carlyle's balance sheet and 4.2 million newly issued common shares, which are currently valued at about $172 million, to buy the CBAM assets.
The deal is the latest move in Carlyle's continuing emphasis on credit. Most recently, in February, Carlyle announced it is acquiring real estate investment trust iStar's net lease business for an enterprise value of about $3 billion. Equity funding for the deal is coming from capital from Carlyle's credit business and a minority balance sheet investment, giving Carlyle's credit business a portfolio of 18.3 million square feet of triple-net leases spanning industrial, office and entertainment properties.
As of Dec. 31, Carlyle Group had a total of $301 billion in assets under management.
A Carlyle spokeswoman could not be immediately reached for further information.
