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Recent Transactions
3 Months Ended
Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Recent Transactions
2. Recent Transactions
During the three months ended March 31, 2022, the Company announced several transactions as outlined below.
Acquisition of iStar Triple Net Lease Portfolio (See Note 6)
In March 2022, Carlyle Net Leasing Income, L.P., a Carlyle-affiliated investment fund, acquired a diversified portfolio of triple net leases for an enterprise value of $3 billion, which was funded using $2 billion in debt and $1 billion in equity. The investment fund is not consolidated by the Company and the debt is non-recourse to the Company. Carlyle, as general partner of the investment fund, contributed $200 million as a minority interest balance sheet investment, which is included in the Company’s Global Credit principal equity method investments.
Fortitude Capital Raise and Strategic Advisory Services Agreement (See Note 6)
In March 2022, the Company raised $2.0 billion in third-party equity capital from certain investors in Carlyle FRL and T&D, and committed up to $100 million from the Company to Carlyle FRL for additional equity capital in Fortitude. Fortitude is expected to call the capital in two drawdowns during 2022. In connection with the capital raise and subsequent funding, the Company’s indirect ownership of Fortitude will decrease from 19.9% to 10.5%.
On April 1, 2022, the Company entered into a new strategic advisory services agreement with certain subsidiaries of Fortitude through a newly-formed investment advisor, Carlyle Insurance Solutions Management L.L.C. (“CISM”). Under the agreement, CISM will provide Fortitude with certain services, including M&A, transaction origination and execution, and capital management services in exchange for a recurring fee based on Fortitude’s general account assets, which will adjust within an agreed range based on Fortitude’s overall profitability.
Acquisition of CLO Management Contracts from CBAM Partners LLC (See Note 4)
On March 21, 2022, the Company acquired the management contracts related to a portfolio of assets primarily comprised of U.S. and European CLOs as well as other assets across private credit from CBAM Partners LLC (“CBAM”) for a purchase price of $812.9 million. In connection with the acquisition of the CLO management contracts, the Company acquired CLO
senior and subordinated notes of $175.9 million, a portion of which is financed through term loans and other financing arrangements.
Acquisition of Abingworth LLP
In April 2022, the Company announced an agreement to acquire Abingworth LLP (“Abingworth”), a life sciences investment firm. Consideration for Abingworth includes a base purchase price of $187.5 million, of which up to $47.5 million may be settled with newly-issued shares of the Company’s common stock, as well as up to $130 million in future incentive payments on the achievement of certain performance targets. The acquisition includes the rights to 15% of performance revenues generated by Abingworth’s two most recent active investment funds, Abingworth Bioventures 8 LP and Abingworth Clinical Co-Development Fund 2 LP. The transaction is expected to close in 2022.