US-based private equity firm Carlyle Group is currently in discussion to buy credit investment firm CBAM Partners, Reuters reported, citing people privy of the development.
According to the sources, a deal would enable Carlyle to boost its credit investment platform and fortify its competition with peers including Apollo Global Management and Blackstone.
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The company is looking to buy the New York-headquartered credit firm for between $750m and $850m, according to a report by Bloomberg.
Founded in 2016, CBAM is claimed to oversee $15bn in credit assets, including collateralised loan obligations and structured credit products.
Billionaire Todd Boehly’s investment company Eldridge holds the controlling stake in the firm.
Spokespersons for Carlyle and CBAM did not comment on the news.
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By GlobalDataThe Washington, D.C.-based Carlyle, which has been looking to fortify its credit platform, hired veteran credit executive Mark Jenkins in 2016 to lead its expansion into the private credit market.
As of the end of December 2021, the firm’s credit assets increased $73bn from $34bn in 2016 on the back of a number of acquisitions and fundraising.
In 2016, it invested about $400m in ION Investment Group and acquired aircraft financing firm Apollo Aviation Group in 2018.
Last year, Carlyle agreed to take a majority holding in funds network Calastone to help the latter ramp its growth, including global expansion.
Most recently, the firm agreed to buy rental property leasing business of iStar in a $3bn deal.
Last year, Hurst Point Group, a portfolio company of Carlyle, brokered a deal to acquire investment manager Hawksmoor Group.
