Carlyle Group acquired a minority stake in money manager Avalon Advisors, which has $3.8 billion in assets under management, according to a Carlyle news release.
Terms weren’t disclosed.
Private investment firm Platform Partners, which according to an SEC filing owns between 10% and 25% of Avalon’s equity, “will participate in the recapitalization with a significant portion of its existing stake in Avalon and continue to serve as a strategic partner,” according to the release.
Carlyle’s investment in Avalon was made from the $1.1 billion Carlyle Global Financial Services Partners fund. Randy Quarles, a managing director with Carlyle, couldn’t immediately be reached for further comment.
The Carlyle fund was launched in 2008, and has a 10-year life, Carlyle spokeswoman Elizabeth Gill wrote in an e-mail.
Avalon’s partnership with Carlyle will help the firm “expand our spectrum of investment solutions with a partner who can provide expertise in complementary asset capabilities,” Robert Gauntt, a founding partner and president of Avalon, said in the Carlyle release. Mr. Gauntt couldn’t immediately be reached for further comment.
According to data tracker eVestment Alliance, about 20% of Avalon’s $3.8 billion in AUM as of June 30 came from endowments, foundations and corporate pension funds; the remainder came from high-net-worth investors.
Silver Lane Advisors was financial adviser to Avalon; Samoset Capital Group advised Carlyle.