Fortune Magazine ranked The Carlyle Group third on its list of top private equity investors. The magazine gave the Washington-based firm points for its global reach and its high return on investment despite what Carlyle calls a “conservative” deal-making style.
The firm, founded in 1987, manages almost $55 billion in 48 different funds. While it built a high-profile persona based on previous advisers, including political heavyweights such as former President George H.W. Bush and former Secretary of State James Baker, the firm today is more focused on its investments with nonpolitical ties, according to Fortune. In fact, the firm has less than 1 percent of its total investments in the defense industry, Carlyle Spokesman Chris Ullman said. Carlyle does have numerous investments in the Washington region, though much of those are in the real estate market. The firm has invested $1.5 billion in the region’s commercial and residential real estate in the last two years, Ullman said. For example, the firm joined forces earlier this month with Crescent Hotels& Resorts to acquire the Sheraton College Park.
Carlyle also invests about 25 percent of its funds into telecommunications and technology and last year partnered with Novak Biddle Venture Partners to launch Command Information, a Fairfax-based technology start-up focused on providing next generation Internet service to federal agencies and private companies. Carlyle Senior Adviser Charles Rossotti said at the time that Carlyle intended to rapidly grow the technology start-up. Since then, Carlyle has provided a second round of funding for Command, though the value of both investments remains undisclosed.
Carlyle also made news in 2006 with its acquisition of the Dunkin’ Donuts brand and the Hertz Corp. The 750-person firm has 27 offices in the United States and throughout the world.
“The key here for us is being on such a list is an acknowledgment of the scope of Carlyle and the success of our investments,” Ullman said. “You can’t raise money if you’re not (already) successful.”
Carlyle was the only Washington-area firm to make the list, but The Blackstone Group, which has investments in the Washington region, topped the Fortune list.
For example, Blackstone’s Real Estate Group acquired the Hyatt Regency Washington from Jones Lang LaSalle Hotels in 2004.
