Monday, July 19, 2010

Carlyle Group Buys Qualicorp

The Carlyle Group purchased Qualicorp, a Brazilian health insurance company. Carlyle is buying General Atlantic's stake in the firm. Terms of the deal were not disclosed. Carlyle's press release stated:

Qualicorp will be well positioned to continue its strategy of enabling Brazil’s middle class to access high-quality private health insurance.

Carlyle's incredible growth the last decade coincided with a shrinking U.S. middle class. The private equity underwriter (PEU) expects 30% returns. I'm sure they can drive up Brazilian health insurance costs while chasing bazillions in returns.