Carlyle Group and Solus Alternative Management are set to receive an $88 million dividend from auto-parts company Metaldyne, which the firms bought out of bankruptcy just one year ago.LBO Wire noted Metaldyne's use of $225 million in term loans to pay down debt and funnel dividends to Carlyle and Solus.
Dividends, management fees, independent public offerings, and outright sales drive private equity underwriter (PEU) profits. Carlyle's "great cash-in" continues.
Update 4-17-12: As Carlyle again considers how to liquefy Metaldyne, WSJ reported Metaldyne paid "at least $215 million in dividends to (PEU) investors in late 2010 and 2011."
