Carlyle looks to sell stake in RAC

US private equity firm Carlyle Group is looking to sell part of its equity in RAC, the roadside rescue business it bought from Aviva for £1bn a month ago.

The firm is looking to sell up to £200m of equity in RAC. GIC, the Singaporean sovereign wealth fund, is understood to be one of the potential investors. Carlyle beat off private equity rivals BC Partners and Clayton, Dublier & Rice to win the bid. While it was able to agree that Aviva would keep RAC’s pension fund, it had to increase its equity bid to £525m, which means RAC represents almost 10 per cent of its Europe III fund.