Carlyle Strategic Partners (CSP) is Carlyle’s distressed investing group focused on acquiring the debt and equity of operationally sound, financially distressed companies. CSP seeks to achieve influence or control in its investments whenever possible and focuses in industries where Carlyle has extensive experience, including aerospace, automotive, consumer, defense, energy, healthcare, industrial, media, power, retail, technology, telecommunications and transportation which can collectively encompass a significant portion of the distressed market at any given time.
Investing in distressed companies is a natural extension of Carlyle’s buyout and high yield activities. The CSP team draws upon Carlyle’s established management network, deep industry expertise and buyout and leveraged finance platforms to give it the competitive edge of a strategic player in a market dominated by financial investors.
CSP has the flexibility to invest throughout the capital structure: in bank loans, public debt, structured equity and public and private equity.
CSP makes control-oriented investments whenever possible. Control enables CSP to drive business returns and value by influencing the direction of its portfolio companies at the management and board levels. CSP uses the Carlyle network to support its management teams and to recruit managers who understand industry specific challenges and can build upon a financially troubled company’s strengths while shoring up areas of weakness. In addition, Carlyle’s industry focus enables CSP to appoint Board members who have extensive sector experience and can provide critical insights into the issues shaping a portfolio company’s future.
The combination of these resources and the more than 85 years of distressed investing, private equity, restructuring and investment banking experience of the group’s professionals position CSP uniquely among investors in financially distressed companies.