The Carlyle Group has agreed to acquire Toronto-based Diversified Global Asset Management Corp. (DGAM), a global manager of hedge funds with more than US$6.7 billion in managed and advised assets.
It will make an initial payment of $33 million and an additional $70 million in deferred payments over a seven-year period for the Canadian company, according to a filing with the Securities and Exchange Commission.
DGAM’s client base is 100% institutional and includes some of the largest public and private pension funds, endowments and sovereign wealth funds from around the world.
The company will become part of Carlyle’s Solutions platform, which had assets under management of $48.4 billion as at Sept. 30, 2013, and also includes AlpInvest, the private equity fund of funds operation, and Metropolitan Real Estate, acquired Nov. 1.