DBRS acquired by The Carlyle Group and Warburg Pincus

Ratings agency plans growth in U.S.

A group of investors has acquired DBRS, the fourth-largest global credit agency. According to an announcement from DBRS, global alternative asset manager The Carlyle Group (CG) and Warburg Pincus, a global private equity firm, in partnership with a group of Canadian-based individual investors including DBRS’ founder, Walter Schroeder, and DBRS management, have agreed to acquire DBRS for an undisclosed sum.

Schroeder, who was DBRS’ controlling shareholder, will remain “important investor” in DBRS, the ratings agency said. “I am delighted to partner with such high quality and internationally known investment houses as Warburg Pincus and Carlyle,” Schroeder said.

“While our Canadian franchise and culture will continue to be at the core of DBRS’ operations, the breadth and depth of both Warburg Pincus and Carlyle’s international presence will be invaluable to DBRS as it seeks to capitalize upon its growing platforms in the United States and Europe,” Schroeder added.

DBRS Chief Executive Officer Daniel Curry said that the acquisition will help to continue the company’s development in North America. The company currently has offices in New York and Chicago, and often rates U.S. residential mortgage-backed securities.

"In partnership with Dan Curry and his management team we will continue the build out of the DBRS platform on a global basis,” Olivier Sarkozy, Carlyle managing director and head of the financial services team, said.

“The world needs more global ratings franchises that issuers and investors alike can count on to provide timely and insightful ratings on a consistent and impartial basis. As the world’s fourth-largest agency, we believe DBRS is ideally suited to fill that void.”

The deal is expected to close in the first quarter of 2015.

“DBRS is the market leader in Canada and is recognized around the world for its high-quality insight and analysis," said Michael Martin, Warburg Pincus managing director and head of financial services. “We look forward to partnering with Dan and the rest of the management team in the next phase of the company’s evolution.”

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