The Carlyle Group Assumes Majority Interest in NEP Group
Carlyle, a global alternative asset manager with $210 billion in assets under management across 335 investment vehicles, has a long-term track record of successfully investing in growing media companies, as well as technology and business service companies. As of June 30, 2018, the firm had invested nearly $90 billion in private equity transactions and $20 billion across the technology and business services sectors alone. Carlyle invested in NEP through the CGP long-duration fund, which Carlyle launched in 2014 to pursue opportunities that leverage its expertise, resources and global platform for investments that benefit from longer hold periods and structural flexibility. The CGP fund’s ability to hold NEP for a longer period of time than a traditional private equity fund and its focus on long-term capital investment provides NEP with substantial available capital to support the company’s current and future growth strategy.
As part of the transaction, NEP announced the company’s new Board of Directors, including three new members. Joining the NEP Board are:
▪ Venus Williams, professional tennis player and Principal at EleVen by Venus Williams and VStarr Interiors. In 2007 Ms. Williams launched EleVen, a lifestyle business and brand of fashion-forward activewear, and in 2002 formed VStarr Interiors, creating elegant, timeless designs for residential and commercial properties. Both businesses are supported by the same hard work, preparation, dedication, intuition and instinct that has made her one of the world’s top athletes. Ms. Williams is a business graduate of Indiana University East and a graduate of the Art Institute’s fashion design program.
▪ Matthew Coles, Vice President, The Carlyle Group. Mr. Coles has been with CGP since 2016 and previously worked in Carlyle’s European Buyout fund. Since joining Carlyle in 2010, Mr. Coles has been actively involved in investments across a number of industries and sectors including business services, industrials, consumer and financial services. He is a graduate of St. Peter’s College, Oxford University. Mr. Coles will serve on the Board’s Audit Committee.
▪ Patrick J. Wilson, The Carlyle Group. Mr. Wilson has been with The Carlyle Group since 2013 and CGP since 2015. His experience at Carlyle includes multiple private equity funds, including Carlyle's flagship buyout fund in Asia, Carlyle Asia Partners, and multiple sectors, including media, education, healthcare and industrials. He is a graduate of the University of Sydney’s Business School and Faculty of Law and received his Master of Applied Finance from the Securities Institute of Australia. Mr. Wilson will serve on the Board’s Audit Committee.
Continuing on the NEP Board of Directors are six members:
▪ Kevin Rabbitt, CEO of NEP Group, will continue to serve on the Board and will assume the role of Chairman.
▪ Debra Honkus, Co-Founder of NEP and former Chairman of the Board, will continue to serve on the Board and will assume the role of Chairman Emeritus.
▪ Tyler Zachem, Managing Director of The Carlyle Group and Co-Head of the Carlyle Global Partners fund, will continue to serve on the Board. Mr. Zachem will chair the Board’s Compensation Committee.
▪ Ken Schanzer, retired President of NBC Sports, will continue to serve on the Board and its Compensation Committee.
▪ Mark Patricof, Founder of Patricof Co, will continue to serve on the Board and its Compensation Committee.
▪ Fred Reynolds, retired CFO of CBS, will continue to serve on the Board and chair the Board’s Audit Committee.
“Carlyle has been an outstanding partner over the last two years, and we’re excited for the opportunity to continue our relationship,” said Kevin Rabbitt, CEO of NEP. “The industry expertise, global network and long-duration capital they provide are major assets to NEP as we move forward with our strategy to expand globally, broaden our service offerings and grow the business.
“I’m also looking forward to working with our new NEP Board of Directors. We have an exceptional group of people, and I am personally excited that Venus has decided to join this group. Collectively, the Board brings valuable and diverse experiences and perspectives to the table.”
Tyler Zachem, Managing Director and Co-head of Carlyle Global Partners, added: “NEP’s management team has grown the business significantly since our original investment. We look forward to continuing this momentum as we work together to expand NEP’s position as a fully diversified global outsourced production services business.”
Jones Day served as legal advisors to NEP on the transaction. Debevoise & Plimpton LLP served as legal advisors to Carlyle on the transaction. J.P. Morgan Securities LLC, Barclays and Patricof Co served as financial advisors to the Company. Berenson & Company, LLC served as financial advisor to Carlyle.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $210 billion of assets under management across 335 investment vehicles as of June 30, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 31 offices across six continents.
For over 30 years, NEP has been a worldwide outsourced technical production partner supporting premier content producers of live sports, entertainment, music and corporate events. Our services include remote production, studio production, audio visual solutions, host broadcast support, premium playout, post production and innovative software-based media management solutions. NEP’s 3,500+ employees are driven by a passion for superior service and a focus on technical innovation. Together, we have supported productions in 87 countries on all seven continents.