The Carlyle Group announced Oct. 1 that it would buy a 55 percent stake in Vermillion Asset Management, a New York-based commodities trading hedge fund manager, The Washington Post reported today.
The move represents Carlyle's "biggest leap yet in an expansion that has seen it diversify from private equity into other alternative asset classes," Reuters noted.
The Washington-based Carlyle Group is a global alternative asset manager with $156 billion of assets under management that just went public earlier this year. It is one of the world's largest and most diversified alternative asset management firms with funds invested in 11 core industries and six countries. It was founded in 1987.
Founded in 2005, Vermillion manages about $2.2 billion of assets and trades on commodities that include agricultural products, metals, energy, coffee, sugar and beans. The Wall Street Journal reported that Vermillion will become Carlyle's exclusive commodities trading platform.
Carlyle said it would acquire the stake in Vermillion for an undisclosed amount of cash, performance-based contingent payments and an ownership stake in Carlyle. That ownership stake, "could rise, depending on performance, to about 1.44 million of its newly listed shares. Today that stake would be worth about $37 million," stated The Wall Street Journal article.
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