Carlyle said that the ESG principals will reinvest a majority of the initial cash proceeds from the transaction into the ESG funds.
Mitch Petrick, managing director and head of Carlyle’s Global Market Strategies business, said ESG has a stable, proven team, and Carlyle believes the right strategies to capture a multi-decade trend of exceptional growth in emerging markets.
"With this strategic partnership, we expect to leverage Carlyle’s local presence, industry and operating knowledge, and senior advisor network in emerging markets with ESG’s public markets franchise to seek to generate superior returns," Petrick added.
ESG was established in 2002 by Kevin Kenny with an initial investment from Julian Robertson through Tiger Management. Today, ESG has four emerging markets equities and macroeconomic strategies.
Tiger Management will maintain a significant investment in the ESG funds and an ownership interest in ESG post-closing.
Kenny will continue as chief investment officer and manage the day-to-day operations, all investment decisions and portfolio construction.
Terms of the transaction, which is expected to close by 1 July 2011, were not disclosed. The transaction has already received the requisite fund consents.
