Middle East investor pumps $500m into Carlyle Group

US private equity firm Carlyle Group has deepened its ties with a major Abu Dhabi investor in a move that could see it grow its investments in the Middle East.

State-owned investor Mubadala Development has paid $500m (£318m) for an unspecified mixture of debt and equity in Carlyle, adding to its 7.5 per cent stake bought in 2007.

Mubadala, which invests in long-term capital-intensive projects to diversify Abu Dhabi’s economy, has co-invested and collaborated with Carlyle in sectors such as healthcare and aerospace since then. The Middle East and north Africa region has been another focus for cooperation.

“Our partnership with Mubadala continues to strengthen as we collaborate on investment opportunities and share sector and regional economic insights,” said David Rubenstein, Carlyle’s co-founder and managing director. The additional capital will allow it to extend new product lines and offerings to investors, said the US firm.

Carlyle currently manages assets of about $98bn while Mubadala said in September that it held 86.1bn dirhams (£15bn) at the end of the first half of 2010.

Goldman Sachs advised Mubadala on the deal, while Citi and JP Morgan Securities advised Carlyle.