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Carlyle Group makes investment in Brazilian private health insurance management company Qualicorp

In its move to increase its global presence, the Carlyle Group Monday announced it had made two more investments, one in Brazil and the other in Australia. The health related investments in Brazil marks another of the Group’s continued global buyouts, making the equity firm one of the most active in the buy out business both domestically and internationally.

The Group announced that it had invested in a takeover for Brazilian company, Qualicorp; in a move it said is in line with its continued investments in emerging markets. According to the group, the realization of the growth potential and market opportunities in emerging markets such as Brazil was behind the motivation for the takeover.

According to unconfirmed sources, the Brazilian investment will cost the Carlyle Group around $1.2 billion, but the official release of the amount has not yet been done. Qualicorp is a manager of private health insurance plans in Brazil. Brazil’s rising disposable income, particularly from its burgeoning middle class was another reason the Carlyle group made the investment, sources revealed.

The burgeoning middle class is increasingly looking for alternative health care plans to supplement their government health care plans. According to Carlyle managing director, Fernando Borges, the growing middle class in Brazil will demand more services and products that they could not afford before, creating a market opportunity.

On the other hand, the Carlyle Group, in conjunction with the TPG, the equity giant, won a bid in which they were contending for Healthscope, a major player in Australia’s hospital sector, beating other rivals for the deal pegged at $2.35 billion. Analysts pointed that the two deals would greatly benefit the Carlyle Group, adding that with its long standing experience in the Health care industry, it is an opportunity for the company to expand its core business.

Analysts said this signals the return of the leveraged buyout market and with its reserves still strong, Carlyle has taken advantage of the market to undertake as many investment deals as it can as it has the funding.  Carlyle Group last week bought NBTY, a New York based vitamin manufacturer for an estimated $3.8 billion coming in a string of its continued investments.  Currently, the Carlyle Group controls over $90.5 billion under its management and its spread across 67 funds with its largest holdings being the Hertz, Dunkin’ Donuts and the nursing home major, HCR ManoCare.

20 July 2010.