Carlyle Group Fund Completes Acquisition of Crestview’s NEP Shares
Private-equity CGP now owns majority interest in the production-services giant
Carlyle Global Partners (CGP), Carlyle Group’s long-duration private-equity fund, has completed acquisition of Crestview Partners’ remaining stake in NEP. Carlyle initially invested in NEP alongside Crestview and management in June 2016 and, following the closing on Oct. 19, now holds a majority interest. Carlyle will continue to support NEP’s strategy of growing its position as a leading worldwide outsourced technical-production partner that enables premier content producers to make, manage, and show the world their content.
“Carlyle has been an outstanding partner over the last two years, and we’re excited for the opportunity to continue our relationship,” says NEP CEO Kevin Rabbitt. “The industry expertise, global network, and long-duration capital they provide are major assets to NEP as we move forward with our strategy to expand globally, broaden our service offerings, and grow the business.”
Carlyle is a global alternative-asset manager with $210 billion in assets under management across 335 investment vehicles. As of June 30, the firm had invested nearly $90 billion in private-equity transactions and $20 billion across the technology and business-services sectors alone. It invested in NEP through the CGP long-duration fund, which Carlyle launched in 2014. The CGP fund’s ability to hold NEP for a longer period than a traditional private-equity fund and its focus on long-term capital investment provides NEP with substantial available capital to support the company’s current- and future-growth strategy.
As part of the transaction, NEP announced the company’s new board of directors, including three new members. Joining the NEP board are Matthew Coles, VP, The Carlyle Group; Venus Williams, professional tennis player and principal at EleVen by Venus Williams and VStarr Interiors; and Patrick Wilson, who has been with The Carlyle Group since 2013 and CGP since 2015.
Continuing on the NEP board are six members: Rabbitt, who will assume the role of chairman; Debra Honkus, co-founder of NEP and chairman emeritus; Mark Patricof, founder, Patricof Co.; Fred Reynolds, retired CFO, CBS, who will chair the board’s Audit Committee; Ken Schanzer, retired president, NBC Sports, who will continue to serve on the Compensation Committee; and Tyler Zachem, managing director, The Carlyle Group, and co-head, CGP, who will chair the board’s Compensation Committee.
“I’m also looking forward to working with our new NEP board of directors,” says Rabbitt. “We have an exceptional group of people, and I am personally excited that Venus has decided to join this group. Collectively, the board brings valuable and diverse experiences and perspectives to the table.”