Nov 26 Carlyle Group LP said on Tuesday
it would acquire Diversified Global Asset Management Corporation
(DGAM), becoming the latest alternative asset manager to add a
manager of funds that in turn invest in other hedge funds to its
DGAM has more than $6.7 billion in managed and advised
assets and will become part of Carlyle's solutions platform,
which includes funds of private equity funds and had $48.4
billion in assets under management as of the end of September.
The deal follows peer KKR & Co LP's acquisition last
year of Prisma Capital Partners LP, which added $8.1 billion of
such assets to its platform. Both deals may be some way off from
posing major competition to Blackstone Group LP, whose
fund-of-hedge-funds unit BAAM had $53.2 billion in assets under
management as of the end of September.
"With the DGAM partnership, Carlyle's solutions platform is
now positioned to offer investors the ability to allocate across
alternatives in hedge funds, private equity and real estate,"
said co-CEO David Rubenstein, who founded Carlyle in 1987 with
William Conway and Daniel D'Aniello.
Carlyle's acquisition of DGAM follows the recruitment of
Morgan Stanley's fund-of-hedge-funds chief Jacques
Chappuis as head of its solutions business earlier this year,
with a mandate to grow both organically and through
Earlier this month, Chappuis completed Carlyle's takeover of
funds-of-real-estate-funds manager Metropolitan Real Estate
Equity Management LLC, which has more than $2.6 billion in
Founded in 2004 by George Main, Warren Wright, Graham
Thouret and Jeff Lucassen, Toronto-based DGAM will become part
of Carlyle by February 2014. Main and Wright will continue in
their roles as chief executive and chief investment officer,
respectively, after the acquisition, Carlyle said.
Goldman Sachs Group Inc advised DGAM on the deal.