Carlyle sells stake in RAC

Overview:

• Private equity house Carlyle has announced its intention to sell its remaining stake in UK automotive breakdown service the RAC to CVC Capital Partners and GIC.
• The deal (set to complete in early 2016) follows similar deals which have seen Carlyle gradually reduce its stake in the company, with a 50% share being sold in 2014.
• Carlyle originally acquired the breakdown business from Aviva in 2011.
• The move is seen as an example of both CVC and GIC's intention to invest in 'long term assets' with CVC having set up fund vehicles with the intention to invest in and hold assets for periods of 10-15 years as opposed to the five year cycle of the typical private equity acquisition.

Sam Duke - Editor