Global alternative asset
manager The Carlyle Group CG and Warburg Pincus, a global private
equity firm focused on growth investing, in partnership with a consortium of
Canadian-based individual investors including DBRS' founder, Walter Schroeder
and DBRS management, have agreed to acquire DBRS, the fourth largest global
credit rating agency. Terms of the transaction, which is expected to close in
the first quarter of 2015, were not disclosed. Corporate headquarters will
remain in Toronto.
Walter Schroeder, DBRS' founder and controlling shareholder, will remain an
important investor in DBRS. Mr. Schroeder said, "I am delighted to partner
with such high quality and internationally known investment houses as Warburg
Pincus and Carlyle. While our Canadian franchise and culture will continue to
be at the core of DBRS' operations, the breadth and depth of both Warburg
Pincus and Carlyle's international presence will be invaluable to DBRS at it
seeks to capitalize upon its growing platforms in the United States and
Europe."
DBRS is a global provider of timely credit rating opinions and related
information, offering objective, transparent and insightful risk analysis and
opinion across a broad range of financial institutions, corporate entities,
government bodies and various structured finance product groups in North
America, Europe, Australasia and South America. DBRS currently rates more than
1,000 different companies and single-purpose vehicles that issue commercial
paper, term debt and preferred shares in the global capital markets. Based in
Toronto, with offices in New York, Chicago and London, DBRS serves a diverse
customer base including issuers, regulators, investors and intermediaries.
DBRS Chief Executive Officer Daniel Curry said, "With the support and
resources of our new partners, DBRS is well positioned to strengthen our
leading franchise in Canada and continue to develop our presence across North
America and Europe."
Michael E. Martin, Warburg Pincus Managing Director and Head of Financial
Services said, "DBRS is the market leader in Canada and is recognized around
the world for its high-quality insight and analysis. We look forward to
partnering with Dan and the rest of the management team in the next phase of
the company's evolution."
Olivier Sarkozy, Carlyle Managing Director and Head of the Financial Services
team said, "In partnership with Dan Curry and his management team we will
continue the build out of the DBRS platform on a global basis. The world needs
more global ratings franchises that issuers and investors alike can count on
to provide timely and insightful ratings on a consistent and impartial basis.
As the world's fourth largest agency we believe DBRS is ideally suited to fill
that void."
Carlyle's portion of the equity for the investment will come from Carlyle
Global Financial Services Partners II. Warburg Pincus' portion of the equity
for the investment will come from Warburg Pincus Private Equity XI, L.P.
DBRS was advised by Perella Weinberg Partners as financial advisor and Torys
LLP as legal counsel. CIBC World Markets Inc. served as financial advisor and
Wachtell, Lipton, Rosen & Katz and Stikeman Elliot LLP served as legal counsel
to The Carlyle Group and Warburg Pincus.
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