Overview

Carlyle’s Distressed & Special Situations 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 Distressed & Special Situations franchise was launched in 2004 and today the team actively manages three funds: Carlyle Strategic Partners II (CSP II), Carlyle Strategic Partners III (CSP III) and Carlyle Strategic Partners IV (CSP IV). 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
Investment Industry Invested 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
Liberty Tire Recycling LLC

Liberty Tire Recycling is the premier provider of tire recycling services in the United States. By reclaiming more than 33 percent of the nation’s discarded tires, Liberty Tire annually transforms more than 140 million tires into raw materials for smart, sustainable products that improve people’s lives.

Industrial Current
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
Investment Industry Invested 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 Exited
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

This 2011 vintage 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 Invested Status
AFGlobal

AFGlobal is a leading manufacturer of highly engineered products for energy and industrial end markets

Energy & Power, Industrial Current
Brintons Carpets Limited

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

Consumer & Retail Exited
Klenk Holz AG

Klenk Holz AG processes spruce, pine and fir wood to serve the DIY, retail, export packaging, and construction industries.

Industrial Exited
Nationwide Accident Repair Services plc

NARS provides integrated automotive accident repair management services to the UK insurance industry and retail customers.

Technology & Business Services Current
Service King I

Service King is a multiple-shop operator of automotive collision repair centers.

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
Carlyle Strategic Partners IV
Investment Industry Invested Status
AFGlobal

AFGlobal is a leading manufacturer of highly engineered products for energy and industrial end markets

Energy & Power, Industrial Current
Akari Care Group

Akari Care Group is an elderly nursing and residential care services provider in the UK.

Healthcare Current
BIS Industries

Specialised logistics and materials handling solutions for mining and resource companies.

Transportation Current
KAP Beteiligungs-AG

KAP Beteiligungs-AG is an industrial conglomerate consisting of 13 independently run companies across three key divisions: Industrial Textiles, Foil Solutions and Precision Components.

Consumer & Retail Current

The Distressed & Special Situations 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 Credit 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 Credit platforms to give us the competitive edge of a strategic player in a market dominated by financial investors.

In addition, the Distressed & Special Situations 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
Chad Ellis Vice President New York, NY
Merrill Goulding Managing Director London, UK
Ian B. Jackson Managing Director London, UK
Adnan Khalef Associate Director London, UK
Pavlin Kumchev Associate Director London, UK
Evan Middleton Managing Director New York, NY
Shary Moalemzadeh Managing Director New York, NY
Company Industry Acquired Status
BankUnited Financial Services
Coral Gables, FL U.S.
Exited
Service King I Technology & Business Services
Dallas, TX, USA
Exited