Updated with correction
Carlyle Group's fifth buyout fund is again under attack, this time following the stunning revelation that Edward J. Snowden, a former employee of Carlyle portfolio company Booz Allen Hamilton Inc., leaked National Security Agency documents showing the NSA is spying on American citizens.
But after 25 years, investors with Carlyle — a legend in the private equity world — remain loyal and unflappable. There's been no buzz, no big sell-off of Fund V on the secondary markets. And, Carlyle Group's sixth fund is on its way to closing this summer, after about a year on the fundraising road.
To be sure, there are a few big investors less than enchanted with the Washington-based firm.
The $259.8 billion California Public Employees' Retirement System, Sacramento, sold off 20% of its $1 billion limited partnership interest in Carlyle Partners V LP last year and this month sold its 4% stake in the now-public Carlyle Group. It also has not yet made a commitment to Carlyle's sixth buyout fund, despite being an investor in about 25 Carlyle funds, including four earlier buyout funds.
Shedding its stake in the Carlyle Group was not a strategic decision, said CalPERS spokesman Joe DeAnda, and does not reflect a “lack of confidence in Carlyle or private equity in general.”