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Carlyle shifts staff to Brazil's SPX Capital to subadvise its South America fund

Under the agreement, SPX will establish a long-term strategic partnership with Carlyle that will provide SPX access to Carlyle’s global platform and resources

Photo: LinkedIn SPX video Screenshot
  • SPX Capital said the partnership is another step towards creating new investment units and becoming a diversified global asset manager;
  • SPX’s team will be led by Fernando Borges, Head of Carlyle South America Buyout.

The U.S. asset manager Carlyle Group announced the launch of a new private equity strategy in South America: it is shifting some people of its staff to Brazil‘s SPX Capital. As first reported by The Wall Street Journal, SPX will subadvise Carlyle’s 776 million buyout South America’s fund.

On a LinkedIn post, SPX Capital said the partnership is another step towards creating new investment units and becoming a diversified global asset manager.

Now, SPX’s team will be led by Fernando Borges, Head of Carlyle South America Buyout, who will join SPX as a partner along with other members of the Carlyle Brazil Team, upon finalization of an agreement with Carlyle expected in the second or third quarter this year, and subject to regulatory approvals.

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Fernando Borges has 25 years of private equity experience in Brazil, having participated in more than 20 transactions in the region and has served on many of the boards of Carlyle’s local portfolio companies. He also is a former Chairman of ABVCAP, the Brazilian Association of PE & VC. “We look forward to welcoming Fernando, his team and Carlyle to build a successful partnership,” the company said.

Under the agreement, SPX will assume Carlyle’s local Brazilian operations – allowing continued day-to-day management of the Brazilian portfolio by Borges and certain members of the team – and will establish a long-term strategic partnership with Carlyle that will provide SPX access to Carlyle’s global platform and resources.

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According to SPX, the agreement will give Carlyle the option to invest alongside SPX in new deals above a certain size threshold going forward.

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