Carlyle Group received a $ 500 million from Abu Dhabi

Carlyle Group received a $ 500 million from Mubadala Development Co., part of the government of Abu Dhabi as the world's second largest private equity firm prepares for an initial public offering.

Mubadala will receive convertible subordinated notes and additional capital in the company, Carlyle said in an emailed statement today without elaborating. The private equity firm sold a 7.5 percent Mubadala in 2007 after shelving plans for an initial public offering amid the credit crisis.

LBO firms are still struggling to raise money to expand and finance acquisitions, even when the pace of its acquisitions more than doubled to 238 billion this year. The Washington-based firm, founded in 1987 by William Conway, David Rubenstein and Daniel D'Aniello, plans to file documents for an initial public offering late next year, according to people briefed on the matter.

"Our partnership with Mubadala continues to strengthen as they collaborate on investment opportunities and the sector share in economic and regional," Rubenstein said in the statement. The company will use the money in part to broaden its range of investment products. Mubadala and Carlyle officials declined to give details.

Mubadala is state-controlled investors, including China Investment Corp. to buy stakes in private equity firms. CIC, which manages the nation's 200 billion U.S. dollars of sovereign wealth funds, paid $ 3 billion for a 9.4 percent stake in Blackstone Group LP, a fund manager buys world's largest at the time of flotation of the company in June 2007. CIC acquired a stake of 2.3 percent in London Apax Partners LLP in February.

Mubadala partnership

"Since the initial investment in 2007, our two companies collaborated on a number of industry sectors," said Khaldoon Al Mubarak, CEO Mubadala said in the statement. "We rely on the continued success of Carlyle as a global alternative asset manager."

Carlyle has 76 active funds targeting private equity, debt or real estate. Carlyle's biggest fund, a pool of 13.7 billion U.S. dollars issued in 2007 which focuses on buy-outs of North America, had a 10 per cent of its investments at March 31, according to the Employee Retirement California public system, one of the biggest supporters of the company. ancestor of the fund, raised in 2005, has generated a profit of 10 percent so far, the data show Calpers. In Europe, Carlyle, 5.4 million euros (7.1 billion dollars) buyout fund, raised in 2007, has seen a 40 percent loss so far, according to Calpers.

Mubadala's investments include a joint joint 8 billion U.S. dollars with General Electric Co. in emerging markets, participation in Advanced Micro Devices Inc., the second largest maker of personal computer processors, and a share of 17 percent Dutch luxury automaker Spyker Cars NV sports.

Goldman Sachs Group Inc. advised Mubadala, while Citigroup Inc. and JPMorgan Chase & Co. worked with Carlyle Group.