This Case is about GLOBALIZATION, INNOVATION, IT, KNOWLEDGE MANAGEMENT, ORGANIZATIONAL CULTURE, ORGANIZATIONAL STRUCTURE, RECESSION
PUBLICATION DATE: January 30, 2009 PRODUCT #: 409050-PDF-ENG
This case scenario describes the investment doctrine, organizational structure, management procedures and traditions of the biggest private equity firm in the world quantified when it comes to 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 procedure along business lines.
The latter enables the company to develop abilities and profound knowledge in particular sectors that makes it possible for it to identify investment opportunities that would not be obvious to others, for example in businesses where the principles do not seem promising.
It is trying to improve through using information technology on this. The case describes the company’s foray into financial services, an industry mostly ignored by PE companies as a result of inability to use influence to enhance yields, and professional services, another mostly-ignored sector since the main advantage is human capital. The case also describes the company had to learn to develop an alternative way of PE investing in Asia. These challenges are compounded by the fiscal disaster occurring at the prospects of a possibly serious economic downturn and the time of the case, raising questions about its function in the capital markets and the future prospects of the PE sector.