Carlyle Group And Warburg Pincus-led Consortium To Buy DBRS

(RTTNews) - Private equity firms Carlyle Group LP (CG) and Warburg Pincus LLC said Monday that along with a consortium of Canada-based individual investors, they have agreed to acquire privately-held Canada-based credit rating agency DBRS. Other investors in the consortium include DBRS' founder Walter Schroeder and the DBRS management.

Terms of the transaction, which is expected to close in the first quarter of 2015, were not disclosed. The companies noted that following closing of the deal, DBRS' corporate headquarters will remain in Toronto.

Walter Schroeder, the founder and controlling shareholder of DBRS, will remain an important investor in the company. DBRS is the world's fourth-largest credit ratings agency, behind Standard & Poor's Ratings Services, Moody's Investors Services and Fitch Ratings.

DBRS, founded in 1976, is a provider of timely credit rating opinions that offer insightful risk analysis and opinion across a broad range of financial institutions, corporate entities, government bodies and various structured finance product groups.

DBRS currently rates more than 1,000 different companies and single-purpose vehicles that issue commercial paper, term debt and preferred shares in the global capital markets. Based in Toronto, with offices in New York, Chicago and London, DBRS serves a diverse customer base including issuers, regulators, investors and intermediaries.

Commenting on the acquisition, Daniel Curry, Chief Executive Officer of DBRS said, "With the support and resources of our new partners, DBRS is well positioned to strengthen our leading franchise in Canada and continue to develop our presence across North America and Europe."

Carlyle's portion of the equity for the investment will come from Carlyle Global Financial Services Partners II, while Warburg Pincus' portion of the equity for the investment will come from Warburg Pincus Private Equity XI, L.P.

Carlyle Group has about $203 billion of assets under management across 129 funds and 141 fund of funds vehicles as of September 30, 2014.

Warburg Pincus has more than $37 billion in assets under management and its active portfolio consists of more than 120 companies. Founded in 1966, Warburg Pincus has raised 14 private equity funds, which have invested more than $50 billion in over 720 companies in more than 35 countries.

Perella Weinberg Partners acted as financial advisor to DBRS on the deal, while Torys LLP acted as its legal counsel.

For Carlyle Group and Warburg Pincus, CIBC World Markets Inc. served as financial advisor and Wachtell, Lipton, Rosen & Katz and Stikeman Elliot LLP served as legal counsel.

CG closed Friday's trading at $27.45, up $0.44 or 1.63 percent on a volume of 691,871 shares.