The Carlyle Group

About the AMC

  • The Carlyle Group is an American multinational private equity, alternative asset management and financial services company. It specializes in corporate private equity, real assets, and private credit.
  • $217 billion of assets under management across 4 core business segments and 392 investment vehicles.
  • Founded in 1987 in Washington D.C their global team today comprises over 1,775 professionals operating in 32 offices across 6 continents.
  • Their mission is to drive long-term value for our investors, companies, shareholders, people and communities.
  • The four segments that they operate in are – corporate private equity, real assets, investment solutions & global credit.
  • It focuses on 10 core industries in which it believes it can provide deep expertise and have a competitive edge over others. It also values depth over breadth.
  • In 2005, it opened a new office in Mumbai. The Mumbai office houses seven investment professionals who conduct growth capital and buyout deals throughout India.
  • These two teams of seven invest out of three separate funds, totaling $1 billion in assets.
  • The team invests out of Carlyle’s two Asia growth capital funds, which have $323 million in equity commitments. These funds make investments throughout Asia, including India.
  • The team invests out of Carlyle’s one Asia buyout fund, which has $750 million in equity commitments.

Key staff

  • Neeraj Bharadwaj is the Managing Director of Carlyle India Advisors Private Limited, focused on large growth capital and buyout opportunities across sectors in India. Prior to joining Carlyle in 2012, he was a managing director with Accel Partners’ growth investing operation in India.  Before that he was with Apax Partners for nearly 10 years, as a partner in the United States and subsequently as managing director/country head for Apax in India, where he led the India operations. Investments he has been involved with include Apollo Hospitals, Jamdat, Widerthan, NXP and others. Previously, Bharadwaj was an engagement manager at McKinsey & Co. He holds an MBA from the Harvard Business School, and graduated in economics from the Wharton School of the University of Pennsylvania.
  • Vikram Nirula is the Managing Director of Carlyle India Advisors Pvt Ltd. He joined Carlyle after 18 years with a local Indian PE firm, True North Managers, which he helped found. While there, he was actively involved in various investments in diverse industries, including consumer companies, retail firms, financial services and industrials. Prior to that, he spent five years at Arthur Andersen in their financial consulting and corporate finance practice. He graduated with a bachelor’s degree in engineering from Birla Institute of Technology in India and went on to earn a postgraduate diploma in management from the Indian Institute of Management in Bangalore.

Investment Philosophy (for firm “Global”)

Carlyle’s investment philosophy is to partner with great companies and management teams, providing them with tools and resources to create value and grow. It uses its One Carlyle global network, deep industry knowledge, executive operations group and portfolio intelligence to create and execute a customized value creation plan for each of our corporate private equity and real asset investments.

Process

Global investment resources delivers strategic and operational support to Carlyle investment teams and portfolio companies in two key areas—transaction resources and portfolio resources.

Transaction Resources: The team provides Carlyle’s investment professionals with project-based support and technology solutions to leverage the firm’s resources and relationships generating a competitive edge in sourcing, diligence and deal execution. For investment teams, this means working with trusted internal advisors who can deliver: insight and data on historical transactions during diligence; competitive positioning in a bid process; and differentiated revenue growth or performance improvement opportunities that leverage Carlyle’s resources.

Portfolio Resources: Once Carlyle invests in a portfolio company, the team offers an array of value-added services and capabilities that can be tailored to support the investment. The team focuses on strategy & revenue growth, performance improvement and corporate intelligence & support.
 

  • Strategy & Revenue Growth: Working directly with portfolio company management, the team supports business development strategy & planning, new customer acquisition and international market expansion.
     
  • Performance Improvement: The team provides tools for portfolio companies to create value through operational performance improvement and leveraged purchasing support including: negotiating master service agreements and preferred vendor relationships that leverage the scale of Carlyle’s portfolio; and developing and disseminating best practices for common areas of cost such as indirect purchasing, information technology, real estate & energy, labor & health benefits, and insurance & treasury.
     
  • Corporate Intelligence & Support: Portfolio companies can access Carlyle’s internal research, communications and government affairs teams on issues relating to macroeconomic forecasting, marketing/branding and the changing regulatory environment.

Media

Title: Corporate videos, Carlyle.

https://www.carlyle.com/media-room/corporate-videos

Title: Carlyle India, Source: ET, Date: 11 August 2018

https://economictimes.indiatimes.com/news/company/corporate-trends/if-india-delivers-on-gdp-returns-will-come-neeraj-bharadwaj-md-carlyle-asia-partners/articleshow/65369592.cms

Title: Neeraj Bharadwaj on CNBC TV18 Part 1&2, Source: YouTube, Date: 29 April 2017

https://www.youtube.com/watch?v=ArHa3yZRI2E (Part 1)

Neeraj Bharadwaj talks about Carlyle India’s two funds, growth and buyout funds.

He talks about the phase 2007-08 when India seemed like it was going to be the next China in terms of its GDP growth, but due the 2008 financial crisis that led to a major decline in several factors that were first considered to drive the GDP growth up. Cut to in 2017, he explains a lot has changed and the Indian market has thrived to amp up its desirability to investors.  

https://www.youtube.com/watch?v=RCACLqLMvQM (Part 2)

He further explains the sector focused approach at Carlyle. He talks about factors that play in for them to decide which companies to back. He then tells his views (bullish or bearish) based on several sectors Carlyle invests in.

Title: Vikram Nirula, Source: VCCircle, Date: 22 April 2020

https://www.vccircle.com/grapevine-carlyle-looks-for-another-india-md-as-vikram-nirula-on-way-out/

Analyst questions

  • Having presence across six continents, how different are the policies and how easy is it to do business in Asia and specifically in India? What are the regulatory challenges faced?
  • Long-term partnership being one of the core objectives of Carlyle, how are the fundamentally weak portfolio companies helped?
  • The website mentioned one of the reasons why Carlyle is one of the top industry players is due to “deep expertise”, how would you explain that? What gives Carlyle an edge over other big players?
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