Overview

Carlyle’s Special Situations & Corporate Opportunities team specializes in making alpha-driven debt and equity investments in companies that offer downside protection but with the opportunity to unlock substantial upside potential. The team specializes in investing in (i) distressed, complex, or underappreciated assets, (ii) cyclical, contrarian, or event-driven situations and (iii) broader market dislocations to identify attractive investment opportunities. The Special Situations & Corporate Opportunities franchise was launched in 2004 and today the team actively manages two funds: Carlyle Strategic Partners II (CSP II) and Carlyle Strategic Partners III (CSP III).  In an effort to maximize returns and value, the team seeks to exert influence or obtain control in its investments whenever possible.  The team is co-headed by Shary Moalemzadeh and Ian B. Jackson.

Carlyle Strategic Partners I

Launched in 2004 at $211 million, this fund invests in the debt and equity of operationally sound, financially distressed companies. Investments listed here are in companies that CSP controls or is a registered affiliate. Other debt and equity positions are not listed.

Investment Industry Acquired Status
Diversified Machine, Inc.

Diversified Machine, Inc. is a precision machining company specializing in providing automotive powertrain components to the Big 3 OEMs and leading Tier 1 suppliers throughout North America.

Transportation Exited
Stellex Aerostructures, Inc.

Stellex Aerostructures, Inc. is a leading full-service provider of highly engineered titanium and aluminum aerostructure components and subsystems for the commercial aerospace, military/defense, general aviation, and space industries. The Company’s customers include major air/space craft original equipment manufacturers.

Aerospace, Defense & Government Services Exited
Carlyle Strategic Partners II

Launched in 2007 at $1.35 billion, this fund invests in the debt and equity of operationally sound, financially distressed companies. Investments listed here are in companies that CSP II controls or is a registered affiliate. Other debt and equity positions are not listed.

Investment Industry Acquired Status
BankUnited

BankUnited is one of the largest depository institutions headquartered in Florida by assets.

Financial Services Exited
Brintons Carpets Limited

A global manufacturer of specialist woven carpets for residential and commercial premises.

Consumer & Retail Current
Dynamic Precision Group

DPG was created to build a platform of leading independent manufacturers of critical components for the hot section of commercial and military aircraft engines and industrial gas turbines.  DPG has acquired TurboCombustor Technology, Paradigm Precision and certain facilities from Unison Engine Components, a subsidiary of GE Aviation.

Aerospace, Defense & Government Services Current
Metaldyne, LLC

Metaldyne, LLC is a global designer and supplier of metal-formed components and assemblies for engine and transmission applications including engine connecting rods, transmission valve bodies, crankshaft dampers and pulleys, forged and finished differential gears and assemblies, and balance shaft modules.

Transportation Exited
RPK Capital Partners, LLC

RPK Capital Partners, LLC invests in a broad spectrum of commercial aviation assets.

Aerospace, Defense & Government Services Exited
Carlyle Strategic Partners III

Launched in 2010, this fund invests in the debt and equity of operationally sound, financially distressed companies. Investments listed here are in companies that CSP III controls or is a registered affiliate. Other debt and equity positions are not listed.

Investment Industry Acquired Status
Service King I

Headquartered in Dallas, TX, Service King is the third largest multiple‐shop operator (“MSO”) of automotive collision repair centers nationwide and the Texas regional market leader.

Technology & Business Services Exited
Service King II

Service King Paint & Body, LLC is a multiple-shop operator of automotive collision repair centers.

Technology & Business Services Current
Waddington North America

Waddington North America, Inc. (“WNA” or the “Company”) is a leading North American manufacturer and marketer of premium plastic foodservice disposables, including drinkware, tableware, servingware and cutlery for the foodservice, restaurant and consumer markets.

Industrial Exited

The Special Situations & Corporate Opportunities team utilizes its specialized expertise to acquire the debt and equity of operationally sound, financially distressed companies.  The team focuses on industries in which Carlyle has extensive experience; including aerospace, automotive, consumer, defense, energy, healthcare, industrial, media, power, retail, technology, telecommunications and transportation. We believe our ability to leverage synergies across the broader Carlyle Group and identify investment opportunities across the Global Market Strategies platform is a significant competitive advantage.

We have a lean investment process and a flexible mandate with the ability to invest at all levels of the capital structure to maximize risk-adjusted returns: in bank loans, public debt, structured equity and public as well as private equity. This flexibility allows us to react swiftly to changing market conditions. Our investment track-record demonstrates our ability to generate highly attractive returns throughout the economic cycle and independent of the default rate environment. The team’s investments range from distressed corporate debt and equity securities to real assets, underinvested, liquidity constrained businesses and healthy companies with the potential to unlock value through access to growth capital and a strong sponsor. Our investment horizon spans from short duration investments targeting high IRRs to long duration private equity style investments targeting high multiples of invested capital. We are active investors and seek to obtain influential or controlling interests in investments whenever possible. This enables the team to drive returns and value by influencing the direction of its portfolio companies at the board and senior executive levels.

Capital preservation is paramount to us and as a result, the team employs a private equity approach to due diligence for each investment with a focus on downside protection and a sufficient margin of safety.  Once we make an investment, we create value through operational improvements, capital structure optimization and investments in growth, either organic or through add-on acquisitions.  We draw upon Carlyle’s established network, deep industry expertise and Corporate Private Equity and Global Market Strategies platforms to give us the competitive edge of a strategic player in a market dominated by financial investors.

In addition, the Special Situations & Corporate Opportunities group uses the Carlyle network to support the management teams of portfolio companies.  We do not act as managers but look to support management by committing capital to attractive growth opportunities and by supporting profit improvement and growth initiatives.  We select managers who can build upon a company’s strengths while also shoring up areas of weakness. In addition, Carlyle’s industry focus enables the team to appoint Board members who have extensive sector experience and can provide critical insights into the issues shaping a portfolio company’s future.

Team Member Title Location Industry
Jared Bernheim Vice President New York, NY
Eric Hyun-Sup Byun Managing Director New York, NY
Chad Ellis Vice President New York, NY
Merrill Goulding Director London, UK
Ian B. Jackson Managing Director London, UK
Pavlin Kumchev Associate Director London, UK
Evan Middleton Managing Director New York, NY
Shary Moalemzadeh Managing Director New York, NY
Jordan Parker Associate New York, NY
Max Qiu Associate London, UK
Samuel Read Associate New York, NY
Antonio Rodríguez-Pina Associate London, UK
Christian Schmitz Managing Director London, UK
Company Industry Acquired Status
BankUnited Financial Services
Coral Gables, FL U.S.
Exited
Service King I Technology & Business Services
Dallas, TX, USA
Exited