Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has agreed to acquire Diversified Global Asset Management Corporation (DGAM), a global manager of hedge funds with more than $6.7 billion in managed and advised assets. Equity for the transaction will come from Carlyle’s balance sheet. The transaction is expected to close in February 2014.
DGAM will become Carlyle’s fund of hedge funds platform, and George Main and Warren Wright will continue in their roles as CEO and CIO, respectively, managing investments and the day-to-day operations of DGAM.
David M. Rubenstein, Co-Founder and Co-Chief Executive Officer of Carlyle, said, “We are focused on providing fund investors with a broad suite of investment options under one roof. With the DGAM partnership, Carlyle’s Solutions platform is now positioned to offer investors the ability to allocate across alternatives in hedge funds, private equity and real estate.”
Jacques Chappuis, Carlyle Managing Director and Head of the Solutions group, said, “DGAM’s proven ability to create customized hedge fund portfolios complements and augments our private equity and real estate fund of funds capabilities, allowing us to offer more holistic investment solutions. We are pleased to welcome George Main and his team to Carlyle.”
George Main, Chief Executive Officer and Co-Founder of DGAM, said, “We look forward to taking this fundamental strategic step. Carlyle’s global brand, business stature and institutional client relationships combined with DGAM’s people, processes and systems will enable stronger growth and greater ability to serve our clients and funds.”
Established in 2004, DGAM is an independent alternative investment manager and advisor based in Toronto, Canada. The firm was founded by George Main, Warren Wright, Graham Thouret and Jeff Lucassen. DGAM’s client base is 100% institutional and includes some of the largest and most sophisticated public and private pension funds, endowments and sovereign wealth funds from around the world.
DGAM will become part of Carlyle’s Solutions platform, which had assets under management of $48.4 billion at September 30, 2013, and also includes AlpInvest, the private equity fund of funds operation, and Metropolitan Real Estate, acquired November 1.