Carlyle Group to shut hedge fund of funds manager

Two years after buying it, Carlyle Group will shut down a hedge fund-of-funds manager that was a prong in its push to expand beyond private equity.

Bloomberg News reports that employees of Diversified Global Asset Management were told Friday of the operation’s demise, according to Carlyle spokesman Chris Ullman. DGAM co-founders George Main and Warren Wright will leave after they wind down the business, which oversees less than $2bn in fee-paying client assets.

The move comes two months after Carlyle replaced Jacques Chappuis as head of investment solutions, the unit that houses DGAM along with buyout and real estate fund-of funds.

“A challenging market made the business difficult to grow,” Carlyle President and Chief Operating Officer Glenn Youngkin said in a telephone interview Saturday. “We are refocusing our investment solutions segment on areas where we see real momentum.”

To access the complete Bloomberg News article hit the link below:

Carlyle Shutters DGAM Hedge Fund-of-Funds Unit It Bought in 2014

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