Wednesday, October 20, 2010

Carlyle's Latest Debt for Dividend: Metaldyne



Metaldyne issued $250 million in debt, of which $88 million will be used to pay dividends to The Carlyle Group   Special dividends are the third way private equity underwriters (PEU's) earn money from affiliates. 

Carlyle cofounder David Rubenstein spoke on the other two methods in Abu Dhabi.  They are 2% management fees and a 20% carry on sale profits.