| Set up in 1987, the U.S. investment fund The Carlyle Group won early backing from France's Credit Lyonnais bank, which lent it $400 million directly in December, 1995. Two years later, the French establishment helped Carlyle to make one of its biggest acquisitions in the defense industry, by lending $380 million in a transaction that led to the investment fund's acquisition of United Defense for $850 million.
In the 11 years between 1992-2003, Credit Lyonnais was involved in over 20 Carlyle transactions (see the biggest below) ranging from loans, arranger or co-investor, such as in the French firms Solsoft (computer security solutions) and Egencia, an on-line travel booking agency that was sold off to Expedia. Credit Lyonnais also found itself on several occasions playing the role of financial adviser and leading banker to firms that Carlyle coveted, such as Genoyer and Otor. The latter has just filed a suit in the U.S. accusing Carlyle and Credit Lyonnais of conspiracy (see P. 1).
Over the 11 year period the transactions took place at a rate of two or three a year. Last year marked a turning point in the bank's involvement with the investment fund. At least eight major transactions were carried out, including four as an arranger and two as co-investor. It culminated with a loan to Fiat Avio, a shareholder in Ariane Espace, of over $1 billion, when it was acquired by Carlyle and Italy's Finmeccanica. |
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