(Bloomberg) Carlyle Group LP, whose hedge fund business has been bleeding assets, is exiting its majority stake in $3.5 billion Emerging Sovereign Group after only five years. Carlyle, which was co-founded by David Rubenstein, held a 55 percent position in ESG. The founders Kevin Kenny, Mete Tuncel and Jason Kirschner are buying the stake and will take full control over operations after the close of the deal, expected on Oct. 31, according to an ESG letter to investors obtained by Bloomberg.
“ESG is a strong organization, has been a terrific partner to Carlyle and will thrive as an independent business,” Carlyle co-founder Bill Conway said in a statement. “Assets under management have grown from $1.25 billion to $3.5 billion during the time of our investment.”
