Carlyle in Advanced Talks to Acquire CBAM Partners — Report

Multinational financial services provider Carlyle Group, Inc. (NASDAQ: CG) is in advanced talks to acquire an alternative investment management firm, CBAM Partners, for $750 million to $850 million, Bloomberg reported citing people familiar with the matter.

With this acquisition, Carlyle aims to grow its credit investment platform. Headquartered in Washington, the company offers private equity, real assets, private credit and investment solutions.

New York-based CBAM manages credit assets, such as collateralized loan obligations and structured credit products, worth $15 billion.

Wall Street’s Take

After the release of CG earnings report last week, BMO Capital analyst Rufus Hone maintained a Buy rating on the stock and raised the price target to $71 from $68 (42.5% upside potential).

Hone said, “After another exceptional quarter and what we consider as conservative 2022E guidance, we view [the] share price underperformance (likely positioning-related) as a buying opportunity,”

Additionally, Brian Bedell of Deutsche Bank reiterated a Buy rating on Carlyle but lowered the price target from $70 to $68 (36.5% upside potential).

Bedell views the company’s current risk/reward profile as attractive.

Overall, the stock has a Strong Buy consensus rating based on 4 Buys and 1 Hold. The average Carlyle Group stock forecast of $71.40 implies 43.3% upside potential. Shares have gained 58.3% over the past year.

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