The Carlyle Group Expands Credit Alternatives Business with Acquisition of $5.1 Billion of Assets Under Management from Stanfield Capital Partners

Acquisition Would Increase Carlyle’s Credit AUM to $18.1 Billion

New York, NY – Global private equity firm The Carlyle Group today announced it has agreed to purchase the management contracts on $5.1 billion in CLO and other credit assets from Stanfield Capital Partners LLC, a fixed income asset manager based in New York. The transaction, part of a broader strategy to expand the scope and depth of Carlyle’s global credit alternatives business, would increase credit AUM to $18.1 billion from its current $13 billion. Financial terms were not disclosed. The transaction is subject to investor consent and is expected to close in the third quarter of 2010.

Mitch Petrick, Carlyle Managing Director and Head of the Global Credit Alternatives and Capital Markets Group, said, “Scale is critical to the CLO business. With this purchase, Carlyle would become one of the world’s largest structured credit managers and an industry consolidator.” Mr. Petrick added, “As we grow and expand our credit alternatives business we will continue to look for additional opportunities to enhance the scale and diversity of our product offerings.”

The $5.1 billion transaction consists of $4.2 billion in CLOs and $950 million of managed account assets, all of which are invested primarily in non-investment grade corporate loans. The $4.2 billion in CLOs would grow Carlyle’s CLO AUM from $10.2 billion to $14.4 billion, a 40 percent increase.

Linda Pace, Managing Director and Head of Portfolio Management for Carlyle’s structured funds, said, “These are premier assets and among the best we are going to see in this market. Stanfield’s founders Dan Baldwin, Stephen Alfieri and Chris Jansen have built an impressive business and we intend to continue their track record of maximizing returns and protecting investors’ capital.”

Dan Baldwin, Chief Executive Officer of Stanfield Capital Partners, said, “The decision to sell your business is a very difficult one to make. However, we believe the marketplace for credit managers is consolidating, as investors in credit place their money with firms that possess the broad array of resources found at large global asset managers. We chose to sell to Carlyle because they not only have a strong investment platform, but possess a comprehensive infrastructure focused on risk management and client service. We believe our clients will continue to benefit from a consistency and quality of management and service that they have been accustomed to.”

Carlyle's global credit alternatives business comprises an array of leveraged finance, mezzanine and distressed products – currently 24 funds with $13 billion in assets managed by 57 investment professionals.

Berkshire Capital Securities LLC served as advisor to Stanfield Capital Partners.

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Stanfield Capital Partners LLC

Stanfield Capital Partners LLC is a leading asset manager of alternative fixed income strategies concentrating on non-investment grade loans. Founded in 1998, Stanfield's Managing Partners have worked together since 1992 and managed one of the first independently managed loan portfolios. Stanfield has one of the longest institutional track records in the corporate loan and structured credit business. Stanfield has $5.1 billion in assets under management.

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