The Carlyle Group is to acquire Diversified Global Asset Management (DGAM), a manager of hedge funds with more than USD6.7bn in managed and advised assets.
Equity for the transaction will come from Carlyle’s balance sheet. The transaction is expected to close in February 2014.
DGAM will become Carlyle’s fund of hedge funds platform, and George Main and Warren Wright will continue in their roles as CEO and CIO, respectively, managing investments and the day-to-day operations of DGAM.
David M Rubenstein (pictured), co-founder and co-chief executive officer of Carlyle, says: “We are focused on providing fund investors with a broad suite of investment options under one roof. With the DGAM partnership, Carlyle’s Solutions platform is now positioned to offer investors the ability to allocate across alternatives in hedge funds, private equity and real estate.”
Main says: “We look forward to taking this fundamental strategic step. Carlyle’s global brand, business stature and institutional client relationships combined with DGAM’s people, processes and systems will enable stronger growth and greater ability to serve our clients and funds.”
Established in 2004, DGAM is an independent alternative investment manager and advisor based in Toronto, Canada. DGAM’s client base is 100 per cent institutional and includes some of the largest public and private pension funds, endowments and sovereign wealth funds from around the world.
DGAM will become part of Carlyle’s Solutions platform, which had assets under management of USD48.4bn at 30 September 2013, and also includes AlpInvest, the private equity fund of funds operation, and Metropolitan Real Estate, acquired on 1 November.
Goldman Sachs acted as exclusive financial advisor to Diversified Global Asset Management in connection with this transaction.