The Carlyle Group Inc. Stock Price, News & Analysis

Advance Auto Parts (NYSE: AAP) has completed the sale of Worldpac, Inc. to Carlyle (NASDAQ: CG) for $1.5 billion, with estimated net proceeds of $1.2 billion after taxes and transaction costs. The transaction, initially announced on August 22, 2024, aims to simplify AAP's business model and strengthen its balance sheet. The company will provide updated strategic priorities and financial objectives for its blended-box business during its third quarter 2024 earnings call on November 14, 2024.

CorroHealth, a leading revenue cycle management (RCM) solutions provider, announced a strategic investment partnership with Patient Square Capital. Current shareholders, including Carlyle (NASDAQ: CG), TT Capital Partners, Sanaka Group, and CorroHealth management, will maintain their investments, with Patient Square and Carlyle sharing joint control. The transaction is expected to close by year-end. CorroHealth, established in 2019, has grown into a technology and clinically led healthcare RCM platform, with Carlyle serving as the majority investor since 2019.

StandardAero announced the pricing of its upsized initial public offering (IPO) of 60,000,000 shares of common stock at $24.00 per share. The offering includes 53,250,000 shares from StandardAero and 6,750,000 from existing stockholders. Trading is expected to begin on October 2, 2024, on the New York Stock Exchange under the symbol 'SARO'. The offering is set to close on October 3, 2024, subject to customary conditions.

The IPO size was increased from the previously announced 46,500,000 shares. Selling stockholders granted underwriters a 30-day option to purchase up to 9,000,000 additional shares. Lead book-running managers include J.P. Morgan, Morgan Stanley, BofA Securities, UBS Investment Bank, Jefferies, and RBC Capital Markets. The offering will be made only through a prospectus, with copies available from J.P. Morgan Securities and Morgan Stanley & Co.

TJC LP, a middle-market private equity firm, has announced the closure of its second continuation fund at $2.1 billion. This fund extends The Resolute Fund III, L.P. and includes an asset jointly owned with The Resolute Fund IV, L.P. The Continuation Fund acquired five portfolio companies from these funds, providing an opportunity for partners to achieve liquidity while allowing TJC more time and capital to accelerate growth of core portfolio assets.

The transaction was led by AlpInvest, a subsidiary of Carlyle (NASDAQ: CG), and included various secondary and primary investors. TJC offered existing partners options for full liquidity, rollover, or additional capital commitments. The fund was oversubscribed by new investors, demonstrating strong support for TJC's strategy. William Blair served as the exclusive financial advisor, while Latham & Watkins LLP provided legal counsel to TJC.

Unison has launched the innovative Equity Sharing Home Loan, allowing homeowners to access cash at below-market rates without selling assets or increasing debt. This new loan category combines the benefits of home loans and equity sharing agreements, offering interest-only, below-market monthly payments. Global investment firm Carlyle (NASDAQ: CG) has agreed to purchase up to $300 million of these loans.

The product aims to unlock the $32 trillion in U.S. home equity, especially for homeowners reluctant to refinance their low-interest first mortgages. It offers a fixed below-market interest rate for accessing home equity while allowing homeowners to benefit from potential home price appreciation. This versatile solution can be used for home renovations, debt consolidation, or securing financial futures.

Global investment firm Carlyle (NASDAQ: CG) has announced a strategic partnership with North Bridge ESG , committing up to $1 billion for C-PACE financing. This collaboration aims to address the evolving needs of the commercial real estate market on a larger scale. C-PACE is a fixed-rate financing option secured by local property assessments, increasingly sought after for its benefits to commercial real estate capital stacks.

The partnership leverages Carlyle's expertise in strategic growth, real estate, and asset-backed finance, enabling North Bridge to expand its C-PACE financing services to institutional borrowers in major markets nationwide. This transaction, involving Carlyle's Credit Strategic Solutions and Private Credit teams, represents the largest commitment to C-PACE financing to date, positioning North Bridge to lead the industry's transformation.

Sedgwick, a global leader in claims management, has announced a strategic partnership with Altas Partners. This investment values Sedgwick at approximately $13.2 billion, a significant increase from its $6.7 billion valuation in 2018 when Carlyle (NASDAQ: CG) made its initial investment. Altas has committed to invest $1 billion in equity as part of the transaction.

Carlyle will maintain its control position, with Stone Point Capital also remaining as an investor. The partnership aims to foster Sedgwick's continued growth, expand its global footprint, and enhance its service capabilities. In 2023, Sedgwick handled over 8 million claims with fiduciary responsibility for claim payments totaling more than $33 billion. The transaction is expected to close in Q4 2024, subject to customary conditions.

Advance Auto Parts (NYSE: AAP) has announced the sale of its Worldpac subsidiary to Carlyle (NASDAQ: CG) for $1.5 billion in cash. The transaction, expected to close by year-end, aims to simplify Advance's structure and focus on its core blended box business. Net proceeds of approximately $1.2 billion will be used to strengthen the balance sheet and invest in the business.

Worldpac, an automotive parts wholesale distribution business, generated $2.1 billion in revenue and $100 million in EBITDA over the last twelve months. The sale is part of Advance's strategic review to improve productivity and position the company for future growth. Carlyle views this acquisition as an opportunity to leverage its experience in industrial carve-outs, having invested ~$13 billion in similar transactions over the past two decades.

Baxter International Inc. (NYSE:BAX) has announced a definitive agreement to sell its Kidney Care segment, to be named Vantive, to Carlyle for $3.8 billion. This strategic move is part of Baxter's ongoing business transformation aimed at enhancing performance and creating value for stakeholders. The transaction is expected to close in late 2024 or early 2025, subject to regulatory approvals and other conditions.

Key points:

• Baxter will receive approximately $3.5 billion in cash, with estimated net after-tax proceeds of $3 billion
• Proceeds will be used to reduce Baxter's debt
• Vantive, a leader in global kidney care, had 2023 revenues of $4.5 billion
• Post-divestiture, Baxter targets 4-5% annual operational sales growth and an adjusted operating margin of about 16.5% for 2025