Carlyle Acquires Fund Of Hedge Funds Diversified Global

Nov 26 2013 | 12:41pm ET

The Carlyle Group has agreed to buy fund of hedge funds Diversified Global Asset Management, giving the firm a platform for such investments.

The Washington, D.C.-based private-equity giant will pay as much as US$103 million for the Toronto-based firm, which will become its fund of funds platform. DGAM has more than US$6.7 billion in assets under management.

The deal, which will pay US$33 million upfront, with up to $70 million in additional performance-based payouts over the next seven years, is expected to close in February. DGAM founders George Main and Warren Wright will remain CEO and chief investment officer, respectively, of the firm and continue to run its day-to-day operations. Main, Wright, F. Graham Thouret and Jeff Lucassen founded DGAM in 2004.

"We are focused on providing fund investors with a broad suite of investment options under one roof," Carlyle co-CEO David Rubenstein said. "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."

"DGAM’s proven ability to create customized hedge fund portfolios complements and augments our private equity and real estate fund of funds capabilities, allowing us to offer more holistic investment solutions," Jacques Chappuis, head of Carlyle's solutions group, added. "We are pleased to welcome George Main and his team to Carlyle."

Carlyle will pay for the acquisition with equity from its balance sheet, it said.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.