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Wed 3 Sep 2014 11:42 AM

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Abu Dhabi-backed Carlyle pays $115m to settle ‘collusion’ case

US firm was accused of inking an agreement with rivals to back off from certain deals, reducing sale prices

Abu Dhabi-backed Carlyle pays $115m to settle ‘collusion’ case

Carlyle Group, the US private equity firm in which
Abu Dhabi’s Mubadala Development Company owns a 7.5 percent stake, has paid out
$115 million to settle a federal court case which accused it of colluding with
rivals on a number of deals, according to a report in the New York Post newspaper.

The Washington DC-based firm was sued by
shareholders for a number of companies it was targeting for deals, claiming it
entered into an agreement with seven rival private equity firms to back off
from certain deals, therefore eliminating any potential bidding war and
reducing the sale prices achieved.

Carlyle agreed the payout of $115 million to settle
the case, which also included Goldman Sachs, KKR, Bain Capital, Silver Lake
Partners, Blackstone Group and TPG Capital.

Despite the total settlements paid out by the firms
amounting to around $600 million, none have admitted nor denied guilt, the
settlement the report added.

The majority of the deals at the centre of the
lawsuit took place during the boom days between 2005 and 2008.

One of the deals involved the $3.4 billion buyout
of Education Management by Goldman and Providence Equity Partners in 2006, the
newspaper report stated.

A November trial date for the case had originally
been set before the settlements were agreed.

Carlyle Group was founded in 1987 and currently has
assets totalling around $31.5bn. Abu Dhabi wealth fund Mubadala bought its 7.5
percent stake the company in 2007.

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