Sunday, July 26, 2015

Carlyle Monetizes Telecable

Interactive Investor reported The Carlyle Group will sell Telecable, a Spanish telecommunications company, to Zegona,  a firm founded by two former Virgin Media executives.  Carlyle's price is 650 million Euros, up 250 million Euros from its 2011 purchase price of 400 million Euros. 

Carlyle's 62.4% profit over four years is respectable but hardly in line with the PEU's claims of nearly 30% annual returns.  It's not clear how many millions more Carlyle took in annual management fees, deal fees, dividend recaps or the myriad of other ways private equity underwriters bleed affiliates.

Zegona employs a "buy, fix and sell" strategy.  What's to fix after four years of Carlyle ownership?