This case describes the investment doctrine, organizational structure, management procedures and customs of the largest private equity firm in the world quantified in terms of assets under management ($89 billion). The Carlyle Group is distinctive in several manners, including its beginnings in Washington, D.C. and its early dedication to forming the company and its investment decision making process along sector lines. The latter enables the business to develop capabilities and profound knowledge in particular sectors which makes its possibility for it to identify investment opportunities that will not be evident to others, for example in industries where the principles do not seem promising. Carlyle is also geographically diverse with 33 offices around the world, giving it a higher overhead structure than some of its peers.
It is trying to improve on this through using information technology. The case describes the firm's foray into financial services, an industry largely disregarded by PE companies because of the inability to use influence to improve yields, and professional services, another mostly-neglected sector because the principal advantage is human capital. The case also describes the firm had to learn to develop a different way of PE investing in Asia. Looking forward, the company faces huge challenges in delivering attractive returns to its investors given its size and the size of the PE sector as a whole. These challenges are compounded by the monetary crisis occurring at the prospects of a possibly serious economic recession and the time of the case, raising questions about the future prospects of the PE business and its function in the capital markets.
The Carlyle Group case study solution
PUBLICATION DATE: January 30, 2009 PRODUCT #: 409050-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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