Carlyle Group acquires 55 pct stake in Vermillion

WASHINGTON -- The Carlyle Group said Wednesday that it has agreed to buy a 55 percent stake in Vermillion Asset Management.

Vermillion is a New York-based commodities investment manager with about $2.2 billion of assets under management as of Sept. 30. The acquisition was effective Oct. 1.

The Washington-based private equity firm said Vermillion will become its exclusive commodities trading platform. Drew Gilbert and Chris Nygaard, the company's co-managing partners and co-founders, will remain with the company as co-chief investment officers, managing its investments and day-to-day operations.

Carlyle said it acquired the ownership stake in exchange for an undisclosed amount of cash, an ownership interest in Carlyle and performance-based contingent payments payable over 5.25 years.

If Vermillion meets certain performance targets, Vermillion's principals will receive up to 1.4 million Carlyle Holdings partnership units over a 4.25-year period. The units will be exchangeable one-for-one on a private placement basis for Carlyle Group common units, the company said.

Further terms of the deal were not disclosed.

Carlyle Group shares closed at $25.64 per share on Tuesday. Its shares set a 52-week high of $27.90 a month ago.