Story
Carlyle Shares Rise on Report of Talks to Cede Control of Anthesis Group
Summary
Carlyle Group is reportedly in discussions to transfer its majority stake in sustainability consultancy Anthesis to its private credit lender, Bridgepoint Group, sending the private equity firm's shares higher.
Shares of Carlyle Group Inc. (NASDAQ:CG) gained in premarket trading Tuesday following a report that the private equity firm is in talks to transfer control of sustainability consultancy Anthesis Group to one of its lenders, Bridgepoint Group Plc.
The Potential Transaction
According to a report from Bloomberg, the discussions center on Carlyle ceding its majority stake in Anthesis. Bridgepoint Credit, a division of the London-based asset manager, had provided a private loan to finance Carlyle's initial acquisition of the consultancy.
The potential transfer suggests a significant shift in the ownership structure just over a year after the original deal. Such arrangements can occur when a portfolio company faces performance challenges or when market conditions alter the original investment thesis.
Background and Sector Headwinds
AdCarlyle, through its European private equity arm, acquired a majority interest in Anthesis in 2023. The transaction valued the London-headquartered consultancy at approximately £400 million (about $538 million at the time).
The talks come as the environmental, social, and governance (ESG) consulting sector confronts a more challenging environment. After a period of rapid expansion in the early 2020s, driven by corporate net-zero commitments, the industry has faced growing political opposition and scrutiny, potentially impacting growth prospects.
Following the report, Carlyle's shares rose 3.2% in premarket trading on Tuesday, indicating investor reaction to the potential restructuring of the investment.
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