This case describes the investment philosophy, organizational structure, management processes and culture of the largest private equity firm in the world is measured in terms of assets under management ($ 89 billion). Carlyle Group is distinctive in several ways, including its origins in Washington, DC, and his early commitment to the organization of the firm and its investment decision-making by business lines. The latter allows us to build deep knowledge and opportunities in specific sectors, making it possible to identify investment opportunities that are not obvious to others, for example, in industries where the foundation does not look promising. Carlyle also very geographically with 33 offices around the world, giving him a large overhead structure than some of his colleagues. Through the "One Carlyle" approach that emphasizes cooperation, exchange of information and transfer of knowledge in the different sectors and geographic locations, the company strives to use a wide range of features it has built over time. He tries to improve on this through the use of information technology. Case describes raid firm financial services industry is largely neglected PE firms due to the inability to use leverage to enhance returns, as well as professional services, another largely neglected sector, because the main asset is the human capital. It also describes how the company was to learn to develop other approach to PE investing in Asia. Looking ahead, the company is facing enormous challenges in realizing attractive returns for investors, given its size and the size of PE industry as a whole. These problems are exacerbated by the financial crisis going on at the time of the case and the prospects of potentially severe economic downturn, raising questions about the prospects of the industry PE and its role in the capital markets. "Hide
by Robert G. Eccles, Carin-Isabel Knoop Source: Harvard Business School 40 pages. Publication Date: January 30, 2009. Prod. #: 409050 -PDF-ENG
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