Carlyle Group LP (NASDAQ:CG) said today, that it has purchased a 55% stake in a commodities-trading hedge fund, Vermillion Asset Management. Vermillion Asset Management is a commodities based trading firm, with over $2.2 billion of assets under management. Vermillion trades energy, metals, agricultural products and staple products such as Coca beans, coffee, and sugar.
Carlyle Group LP (NASDAQ:CG), which is one of the largest private equity firms, appears set to make its foray into the lucrative commodities market. Commodites trading, is now a big market for both individual and institutional investors. As commodity prices have soared over the past decade, and in the past few months due to the US drought, many investors are trying to chase those returns. Carlyle Group LP (NASDAQ:CG) now offers a method for its investors to participate in this volatile trading market.
For much of the past decade, Crispin Odey has been waiting for inflation to rear its ugly head. The fund manager has been positioned to take advantage of rising prices in his flagship hedge fund, the Odey European Fund, and has been trying to warn his investors about the risks of inflation through his annual Read More
Mitch Petrick, Carlyle’s head of global market strategies. states, “for many years Carlyle has successfully invested in a variety of energy, agriculture and infrastructure companies.”
Below is the full press release:
The Carlyle Group
FOR IMMEDIATE RELEASE
October 3, 2012
The Carlyle Group Purchases 55% Stake in Commodities Investment Manager Vermillion Asset Management
Strategic Partnership Combines Carlyle’s Experience in Commodities Asset Ownership with Vermillion’s Expertise in Trading of Futures and Physical Commodities
Washington, DC and New York, NY – Global alternative asset manager The Carlyle Group (NASDAQ: CG) and Vermillion Asset Management (Vermillion) announced that the Carlyle publicly traded partnership has purchased, effective October 1, 2012, a 55% stake in Vermillion, a New York-based commodities investment manager with approximately $2.2 billion of assets under management as of September 30, 2012, which has become affiliated with Carlyle’s Global Market Strategies business.
Mitch Petrick, Carlyle Managing Director and Head of Global Market Strategies, said, “This is an important addition to Carlyle’s GMS platform. For many years Carlyle has successfully invested in a variety of energy, agriculture and infrastructure companies. Vermillion employs a liquid, relative-value, low volatility approach to trading both physical commodities and their derivatives to produce positive, uncorrelated returns.”
Drew Gilbert, Co-Managing Partner and Co-Founder of Vermillion, said, “Our team looks forward to leveraging Carlyle’s global network and deep knowledge of local markets to better exploit trading opportunities and inefficiencies in the global commodities markets.”
“Global, secular trends are fundamentally reshaping the supply and demand balance for many commodities worldwide. Our partnership with Carlyle will help us maximize these opportunities to deliver more alpha to our investors,” said Chris Nygaard, Co-Managing Partner and Co-Founder of Vermillion. “As we move forward, we are especially grateful to our employees, our many investors and their advisors for their support of this transaction.”
Vermillion was established in 2005 by Drew Gilbert and Chris Nygaard. Today, Vermillion manages three commodities-focused strategies, including relative value, enhanced index and long-biased physical commodities. Each strategy utilizes Vermillion’s ability to make and take physical delivery, unique among its peer group.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $156 billion of assets under management across 99 funds and 63 fund of fund vehicles as of June 30, 2012. Carlyle’s purpose is to invest wisely and create value. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds 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, technology & business services, telecommunications & media and transportation. The Carlyle Group employs 1,300 people in 32 offices across six continents.
About Vermillion Asset Management
Vermillion Asset Management, LLC is an SEC registered investment advisor offering global commodities-focused strategies via a number of collective investment vehicles. The firm’s 43 member team approaches commodities markets with discrete market-neutral and long-biased strategies that invest across the spectrum of interests, including physical commodities, exchange-listed futures and options and commodity-related equities. Vermillion actively pursues opportunities in agricultural commodities, soft commodities, ferrous, non-ferrous and precious metals, as well as freight and energy. Vermillion was founded in May 2005 and is headquartered in New York City. As of September 30, 2012, the firm managed three investment vehicles with an approximately $2.2 billion investor base spanning a variety of institutions, fund of funds and family offices.
This release does not constitute an offer for any Carlyle fund.
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