The Carlyle Group Has Made $2 Billion Off Of Booz Allen
The Carlyle Group Has Made $2 Billion Off Of Booz Allen
In 2008, the Carlyle Group made a large $910 million investment to buy a majority stake in Booz Allen’s government consulting business. The deal saw Booz Allen’s big government advisory unit, which produced most of the firm’s revenue, split off from its corporate consulting group, on the eve of the financial crisis.
But Washington-based Carlyle, which has a long and successful history doing deals involving government contractors, has really made the Booz Allen deal work. It has been an amazing transaction for Carlyle. The private equity firm has made $2 billion in realized and unrealized profits on the Booz Allen Hamilton deal so far. Its $910 million investment is now worth $3 billion.
Carlyle’s acquisition of Booz Allen looked risky back in 2008, but Carlyle believed it could unlock value by separating the cash generating government advisory side of the business from the corporate consulting part of the company. Shares of Booz Allen fell by 3.6% in Monday morning trading after one of its employees, Edward Snowden, leaked information about a secret National Security Agency surveillance program.
http://www.forbes.com/sites/nathanvardi/2013/06/10/the-carlyle-group-has-made-2-billion-off-of-booz-allen/
