The Corporate Mezzanine team invests in privately negotiated junior debt and equity securities of middle market and large cap leveraged buyouts, recapitalizations and growth financings. The team currently manages two funds: Carlyle Mezzanine Partners (CMP) and Carlyle Mezzanine Partners II (CMP II).
The Corporate Mezzanine team is based in New York and Los Angeles. The team pursues a generalist industry approach and leverages The Carlyle Group's extensive expertise in industries such as automotive and transportation; aerospace and defense; media and telecommunications; healthcare; consumer; and basic industrial manufacturing. The Corporate Mezzanine group primarily invests in senior subordinated notes with warrants, preferred stock, and minority common equity securities. Investing in debt securities allows the Corporate Mezzanine team to provide current income on a quarterly basis.
Consistent with Carlyle's value-based investment philosophy, the Corporate Mezzanine team has a credit-based investment process with a focus on principal preservation and downside protection. The team invests in companies with the following characteristics: (i) stable, recurring cash flow, (ii) reasonable growth expectations, (iii) defensible, market-leading positions, (iv) strong, motivated management teams, and (v) sound corporate governance.
Key elements of Corporate Mezzanine's investment approach are as follows:
- Source significant transaction flow through The Carlyle Group's and Corporate Mezzanine’s extensive industry relationships and network of contacts
- Leverage industry knowledge of Carlyle investment professionals
- Invest in companies with fundamental franchise values and focus on principal preservation
- Maintain a diversified portfolio by company, industry and equity sponsor
- Invest with proven equity sponsors and incentivized management teams
- Structure transactions to mitigate risk with a focus on principal preservation