The transaction with the South African company is expected to close in early 2017
January 19, 2017: Global alternative asset manager The Carlyle Group (NASDAQ: CG) announced on January 16 that it has agreed to acquire a significant stake in Africa’s largest credit rating agency Global Credit Ratings (GCR) from the management, founders and German development financial institution DEG. Following the transaction, Carlyle will be the largest shareholder, with around half the equity in the company while management and DEG will remain invested in the business.
Funding for this investment will come from the Carlyle Sub-Saharan Africa Fund. The transaction is expected to close in early 2017, subject to regulatory approvals.
With its headquarters in South Africa and operations across the continent, GCR is Africa’s largest provider of credit ratings. The company serves 400 customers across 20 countries and is the only rating agency to have a strong presence in multiple geographies across the continent.
GCR provides a range of analysis and rating services to its customers, which include many household names and blue-chip organisations. It caters to four key sectors – insurance, financial institutions, corporate & public sector entities, and structured finance.
Eric Kump, co-head of the Carlyle Sub-Saharan Africa team, said, “We are excited to invest in GCR and work alongside CEO Marc Joffe and a top-class management team and staff. Over the past 20 years, the management team have worked hard to grow the business into the highly-respected and pan-African organisation it is today. We will work with the management to continue the impressive growth they have achieved in recent years. We are delighted to be able to bring our strong African experience while also leveraging our global expertise in this sector, through our investment in DBRS, an international credit ratings agency headquartered in Toronto, Canada, to assist with further geographic expansion.”