The Carlyle Group Case Solution

This case describes the investment philosophy, organizational structure, management processes and culture of the largest private equity firm in the world measured by assets under management ($ 89,000,000,000). The Carlyle Group is distinctive in several ways, including its origins in Washington, DC and her early participation in the organization of the company and its investment decision process along the lines of the industry. This allows the company to acquire the knowledge and depth skills in specific areas that can identify investment opportunities that are not obvious to others, as in industries where the foundation does not look promising. Carlyle is also very geographically diverse, with 33 offices worldwide, representing a higher structure that some of the companions of his head. With the approach of “A Carlyle,” which focuses on collaboration, information exchange and knowledge transfer between sectors and geographical areas, the company seeks to take advantage of the wide range of capacity are built over time. It is improved by the use of information technology. The case describes the raid of the company in the financial services, largely forgotten by capital firms due to the inability to use leverage to enhance returns of the sector, professional services, other sectors largely overlooked because the main asset is the human capital. The case also describes how the company has had to learn to develop a different approach to PE investing in Asia. For the future, the company is facing enormous challenges in delivering attractive returns for investors given its size and the size of the PE industry as a whole. These problems are compounded by the financial crisis happening at the time of the case and the prospect of a potentially severe economic downturn, raising questions about the future of the PE industry and its role in the equity markets.
by
Robert G. Eccles
Carin-Isabel Knoop
Source: Harvard Business School
40 pages.
Date Posted: January 30, 2009. Prod #: 409050-PDF-ENG
The case of the Carlyle Group solution

The Carlyle Group Case Solution
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