2010 Annual Report - The Carlyle Group

Adding value by improving performanceIn 2006, Carlyle Asia Partners II, L.P. acquired kbro Limited(then known as Eastern Multimedia Company) for $1.3 billion.The transaction was one of the largest buyouts ever in Asia.kbro is Taiwan’s largest cable television operator by revenueand has 1.2 million subscribers. Last year, Carlyle successfullycompleted a partial exit and recapitalization of kbro ina sale to the Tsai family, a controlling shareholder of TaiwanMobile. During our ownership, the company centralizedoperations to reduce costs, completed an add-on acquisitionthat bolstered its scale, and grew high-speed broadband andother value-added services. In fact, kbro was the first companyto launch digital television services in Taiwan.Alex S. YingManaging DirectorAsia Buyout TeamGregory M. ZeluckManaging Directorand Co-Head of theAsia Buyout Team• MultiPlan, a Carlyle Partners IV, L.P. portfolio company, sold to BC Partnersand Silver Lake.• Otor, a Carlyle Europe Partners III, L.P. portfolio company, sold to DS Smith.• philosophy, Inc., a Carlyle Partners IV, L.P. portfolio company, sold to Coty, Inc.• Vought Aircraft Industries, a Carlyle Partners III, L.P. portfolio company, sold toTriumph Group.• Wall Street Institute, a Carlyle Venture Partners II, L.P. portfolio company, sold toPearson Education.• Yangzhou Chengde Steel Tube Co., a Carlyle Asia Partners II, L.P. portfolio company,sold to Precision Cast Parts.In the first quarter of 2011, we continued our strong pace of activity, distributing toour investors more than $6 billion—setting a record for the largest amount distributedby Carlyle in a single quarter.Seeking high-performance opportunitiesIn 2010, our teams of investment professionals and industry experts worked togetheracross the globe to identify potential investments, focusing on sectors that we believeare misunderstood, have compelling and unrealized embedded value, and are positionedfor success in an uncertain environment.20 The Carlyle group