Saturday, June 3, 2023

Carlyle's Arctic Glacier Avoids Debt Thin Ice

The Carlyle Group's Arctic Ice repaid over $400 million under a term loan due 2024.  Carlyle engaged PJT Partners to assist with the refinancing.  

Carlyle bought Arctic Ice from HIG Capital in March 2017.  PJT Partners was spun off from Blackstone, another politically connected private equity underwriter (PEU).  Blackstone founder Stephen Schwarzman owns roughly 5% of PJT Partners.


It's not clear where Arctic Ice received funds for the refinancing.  Did Carlyle's private credit step forward to fund their company?  Or did another PEU provide financing?  A new debt rating may reveal the answer.  

Update 6-5-23:  "In the first quarter, according to Carlyle Group, Inc., private credit funded 94% of buyouts by number and 70% on a dollar-volume basis."(Grant's Pub)

I'll fund your junk if you'll fund mine... 

Update 6-15-23:  PJT Partners could be held liable for allegedly failing to stop a former partner from defrauding a charitable foundation of $25 million in a fake investment scheme.