BBR – US private equity firm The Carlyle Group has agreed to acquire a 55% stake in Claren Road, a long-short credit hedge fund with $4.5bn in assets under management, in exchange for cash, an ownership interest in Carlyle and performance-based contingent payments.
Claren Road founders will reinvest substantially all of the initial cash proceeds from the transaction back into Claren Road funds. Terms of the transaction, which is expected to close by year end, were not disclosed.
