Abu Dhabi and Washington, DC – The Carlyle Group and Mubadala Development Company today announced a definitive agreement in which Carlyle will sell a 7.5 percent stake to an affiliate of Mubadala for $1.35 billion in cash. The deal represents a 10% liquidity discount to the parties’ agreed-upon $20 billion firm valuation. The minority investment includes no associated voting rights and is subject to value-related protective rights.

Mubadala also committed $500 million to an investment fund managed by Carlyle. The transaction is expected to close in October.

Mubadala joins the California Public Employees’ Retirement System (CalPERS) as a strategic investor in Carlyle. CalPERS purchased a 5.5 percent stake in Carlyle in 2000.

Carlyle Co-founder David M. Rubenstein said, “Speaking on behalf of my fellow Co-founders William E. Conway, Jr. and Daniel A. D’Aniello, Mubadala is among the most sophisticated investors in the world and we are honored to have them as long-term partners. We feel this is an affirmation of the global business model we have created and a reflection of Carlyle’s 20-year record of top-quartile returns. These resources, like the earlier investment by CalPERS, will add to Carlyle’s capital base, strategically expand our business and be used for additional investments.”

Mubadala Chief Executive Officer Khaldoon Al Mubarak, said, “Carlyle’s outstanding returns, broad portfolio and global presence are a tremendous fit for Mubadala’s regional expertise, accelerating growth and international expansion. We are excited about the potential for this partnership and our future relationship together.”

Carlyle is a global private equity firm with 900 employees operating in 21 countries managing $76 billion in capital committed to 55 funds. Since 1987, Carlyle has invested $34 billion in 686 transactions, returned $32.5 billion in equity and gain to its investors and has $30 billion in remaining value in its investments. Further, Carlyle has $32 billion in capital available to invest.

Goldman Sachs advised Mubadala on the transaction and Citigroup Global Markets advised Carlyle on the transaction.

Mubadala Development Company
Mubadala Development Company is a strategic investment and development company headquartered in Abu Dhabi, the capital of the United Arab Emirates. Wholly-owned by the Abu Dhabi Government, Mubadala’s mission is to create and maximize long-term returns as an engaged investor in high-performing businesses and promising new ventures.

The company currently employs 250 staff and is a principal investor in and manager of large-scale industry leading ventures throughout the MENA region. The Company has significant interests in sectors such as energy, heavy industry, telecommunications, infrastructure and aerospace. These include Dolphin Energy, the region’s largest natural gas project and a joint venture to construct and operate one of the world’s largest aluminum smelters.

The company also manages a growing and diversified international portfolio with, for example, significant stakes such as the Dutch fleet management giant LeasePlan Corporation and Swiss aircraft and engine services provider SRTechnics.