Carlyle Group Raising the Bar

The Wall Street Journal, Wednesday, November 9, 2011



Carlyle Cuts Fees to Sell New Funds, by Graig Karmin and Gregor Zuckerman

“Carlyle Group, the large private-equity firm that is preparing for a public share listing, has had to cut fees and offer other unusual incentives to lure investors to a new $2.3 billion real estate fund.

Carlyle has offered large investors annual management fees of as little as 0,75% of assets, half the 1.5% industry standard.  Carlyle also has raised the bar that must be cleared before the firm can share in the fund’s profits, known in the industry as a hurdle rate or preferred return.”

The sports idioms in this article are from track and field.  When the bars are raised for high jumps or hurdles it makes it more difficult for runners and jumpers.  In the case of Carlyle, the group has higher hurdles and bars to “jump” over to get new investors.


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