The Carlyle Group will earn an additional $50 million a year for managing $50 billion for affiliate Fortitude Re.
Carlyle "will earn a recurring fee based on all of Fortitude Re's assets for assisting the reinsurer with acquisitions and identifying new growth opportunities."
Under the agreement, the fee Fortitude will pay Carlyle will be based on the reinsurer's overall profitability; other investors putting more money into Fortitude will also make a minority investment in the adviser entity that Carlyle is forming.
When your 96.5% owners (Carlyle and T&D Holdings) wants more fees what can you do? Comply.
Update 4-1-22: Fortitude Re bought $31 billion of in-force variable annuity account values from Prudential Annuities. Carlyle will be in your retirement. Pensions, IRAs and annuities. Oh my!
