2010 Annual Report - The Carlyle Group

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Carlyle’s Global Alternative Asset Management PlatformWe are one of the world’s largest and most diversified alternative asset management firms. We manage 84 distinctfunds that invest across three segments, nine core Corporate Private Equity industries and six continents. Ourglobal size, scale and brand enable us to access opportunities in virtually every market around the word.CorporatePrivate EquityBUYOUT• Carlyle’s largest andoldest operation• Most diversified global buyoutoperation in the industry with25 offices globallyGROWTH CAPITAL andequity opportunities• Invests in multiple stagesof growth and development• Global presence with offices inAsia, Europe and North AmericaGlobal MarketStrategies• Invests in structuredcredit (CLOs), distressed assetsand mezzanine debt• Claren Road AssetManagement long-short credit• Global reach with officesin Hong Kong, London,Los Angeles, New York andWashington, DCReal Assets• Invests in real estate, energyand infrastructure strategies• Real estate investments includeoffices, hotels, retail, for-saleresidential, senior living andmultifamily residential properties• Opportunistic approach• Extensive local marketknowledge and deep industryexpertiseFund-of-Funds Solutions*• The anticipated acquisitionof AlpInvest Partners willprovide a variety of fund-offundsinvestment options• Fund Investments• Secondaries• Co-Investments*We plan to establish our Fund-of-FundsSolutions business at the time we completeour investment in AlpInvest Partners.We continually seek to expand and diversify our buyout portfolio into what we view askey areas for the future. In 2010, we formed a new team to target opportunities in middle-marketprivate equity in North America across Carlyle’s nine core Corporate PrivateEquity industries. In early 2011, we formed a team to focus on the emerging market ofSub-Saharan Africa and established a joint venture to pursue investments in Peru.Focusing on the theme of a rebound in business and technology services spending,our U.S. buyout fund, Carlyle Partners V, L.P., made strategic acquisitions intwo U.S.-based global telecommunications companies, CommScope and SyniverseTechnologies. CommScope was acquired with our Europe buyout fund, Carlyle EuropePartners III, L.P., for $3.8 billion, and the Syniverse transaction was valued at a total of$2.6 billion. Both transactions were completed in January 2011.In Europe, Carlyle made four new buyout investments in 2010 and one companycompleted an IPO. New investments included a majority interest in Giannoni France, amanufacturer of stainless steel heat exchangers for condensing boilers.Recognizing the global demand for quality healthcare and a rising need for health servicesin the emerging markets, our Asia and U.S. buyout funds, Carlyle Asia Partners III,L.P. and Carlyle Partners V, L.P., teamed up to acquire Healthscope, Australia’s secondlargesthospital provider.In Japan, Carlyle successfully exited its investment in Kito Corporation, a manufacturerof hoists and overhead cranes. Carlyle acquired Kito in 2003 and, since then, helpedthe company restructure, expand and complete an IPO on the Tokyo Stock Exchange.In the MENA region, in addition to our investment in General Lighting Company, weoversaw the rapid growth and strong performance of another Carlyle investment:34 The Carlyle group
section Three diversificationMedical Park Sağlık Hizmetleri, Turkey’s second-largest healthcare services company.Under Carlyle’s guidance, Medical Park is executing a well-structured growth strategy.In South America, Carlyle made two investments, including the acquisition of a controllingstake in Grupo Qualicorp, a provider of brokerage, consultancy services andmanagement of private health insurance plans in Brazil.Growth Capital Products. Carlyle’s Growth Capital portfolio includes 10 funds with$3.9 billion of assets under management as of December 31, 2010. The funds areadvised by three regionally focused teams in Asia, Europe and the United States.27 fundsNumber of funds acrossCarlyle’s Corporate PrivateEquity portfolioCarlyle’s U.S.-focused growth capital operation targets lower middle-market companieswith unrealized growth potential, with an emphasis on small buyout and expansion-stagegrowth equity transactions involving U.S. companies with global potential.In 2010, Carlyle U.S. Growth Fund III, L.P. teamed up with Riverstone/Carlyle GlobalEnergy and Power Fund IV, L.P. to make a significant capital investment in QuorumBusiness Solutions, a provider of business and information technology solutions for theoil, gas and renewable energy industry.Carlyle Europe Technology Partners pursues growth capital and small- to mid-capbuyout investments in companies characterized by technological innovation and leadershipin sectors with positive dynamics. In 2010, Carlyle acquired a majority interestin Companeo, Europe’s largest online company focused on generating business-tobusinessleads. In addition, Carlyle sold FRSGlobal, a risk and regulatory compliancesoftware vendor to financial institutions, having expanded the company globally anddoubled its revenues.Investing in the global financial industryIn 2010, Carlyle Global Financial Services Partners was particularly active seizingopportunities stemming from the lingering effects of the global financial crisis.Carlyle invested or committed more than $480 million of equity in seven transactionsspanning a wide variety of sectors in the broader financial services community.Investments closed in 2010 included Bank of N.T. Butterfield & Son, the largest independentBermuda-based depository institution; Hampton Roads Bankshares, a bankholding company headquartered in Atlanta; and OzForex Group, an online foreignexchange payments platform.The team also assisted portfolio company BankUnited in an IPO on the New YorkStock Exchange in January 2011, which raised approximately $900 million. CarlyleGlobal Financial Services Partners, L.P. had a final closing in 2010 with $1.1 billionin commitments.P. Olivier SarkozyManaging Director andHead of Carlyle GlobalFinancial Services PartnersThe Carlyle group 35
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Page 58 and 59: We are keenly awareof our responsib
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Page 63 and 64: our / purposeInvest wisely. Create

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