The Carlyle Group made huge profits from European luxury goods makers Moncler and Golden Goose. Dainese is breaking that trend, so much so that Carlyle is seeking a break from creditor three years before its debt matures. Bloomberg reported:
Dainese received a €15 million equity injection from Carlyle in December, which helped it comply with loan covenantsPrivate equity underwriters (PEU) hate throwing good money after bad.
Last October, it handed over the keys of End Clothing, a luxury streetwear and sportswear online retailer, to creditor Apollo Global Management Inc.
It's the creditors turn to put Dainese on a better footing. Who are those private bondholders? Are they Carlyle's peers in the lofty private equity/private credit atmosphere? Yes.
The private equity firm bought Dainese in 2022, tapping private credit funds to finance the deal.
That means write downs and losses on both sides of Dainese, equity and debt. Just in time for retirees to add these alternatives to their 401k's.
Surely Carlyle can get some cross branding opportunities. Carlyle co-founder David Rubenstein could equip Baltimore Orioles outfielders with Dainese airbag vests for any potential collision's with the Red Sox' Green Monster, a 37 foot wall in left field.
The time for the great PEU affiliate shuffle nears. They should just make up a card deck of troubled affiliates, get the PEU Legends and current CEOs in a room and get that Liar's Poker game over with.
