Carlyle Group acquired a 55% interest in the $1.6 billion Emerging Sovereign Group, confirmed Christopher Ullman, Carlyle spokesman.
Terms of the deal were not disclosed, but Carlyle Group is using balance sheet assets to invest in the emerging markets equities and macroeconomic strategies hedge fund manager, in exchange for cash, an ownership interest in Carlyle and performance-based contingent payments.
ESG principals will reinvest a majority of the initial cash proceeds into the firm's funds. Current ESG investor Tiger Management, a hedge fund manager, will retain a significant investment in ESG's funds and an ownership interest in the firm.
Mr. Ullman declined to provide additional information.
The transaction is expected to close July 1.
The addition of ESG is part of a Carlyle strategy to bulk up its global market strategies business. Over the last several months, Carlyle bought a stake in credit hedge fund Claren Road Asset Management, added an energy mezzanine team and made several major collateralized loan obligation purchases, Mr. Ullman said.