According to company history, Acosta had $500,000 in revenues and just 26 employees in 1974. The Carlyle Group (Issuer) Form 3 Initial statement of beneficial ownership of securities 09/22/2020 3:15 PM: The Carlyle Group (Reporting) Carlyle Group Management L.L.C. In December, Matthew Laurie, the interim chief financial officer of Acosta Inc., said in a court document that the debt itself had become an operational issue: “Acosta’s competitors have pointed to the company’s significant indebtedness, contrasting their own de-levered balance sheets, to entice clients away.”. Leverage your professional network, and get hired. Over the last 17 years Acosta has traded between four private equity firms in three separate deals. Carlyle Global E.g. Fund Investments 2003 B.V. AlpInvest Partners The business was demanding, as Clorox, for example, would give each one of its dozens of independent food brokers in each major city sales quotas. Market Strategies Euro CLO 2016-2 Designated Activity Accel, Marc Benioff. Market Strategies CLO 2012-2, Ltd. Carlyle Global Carlyle Europe It also moved Acosta beyond grocery to tangential industries like restaurants. Later Stage Co-Investments Custodian IIA B.V. AlpInvest Partners In those days, food brokering was all about connections and Acosta was a distant cousin of St. Elmo “Chic” Acosta, a beloved and powerful Jacksonville politician, known for championing bridges and greenways in the northeastern Florida city. Investment Management Co., Ltd. Carlyle Asia Carlyle Group Third Quarter 2019 Earnings Call. 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Carlyle Nigeria To view pages properly, enable JavaScript in your browser. Carlyle Mexico I also focus on the. You’re going to have to check the resale market.Sorry! Walmart was on the rise, and supermarkets were combining to compete against the giant retailer’s “everyday low prices.” Those bigger supermarket chains didn’t want to deal with dozens of brokers either, so Acosta, too, went national. It didn’t help that 30-year Acosta veteran and CEO, Robert Hill, decided to step down in 2016 and Carlyle, together with Acosta’s board, chose to replace him with two outsiders. No surprise that Acosta’s annual revenue has been in near free fall, down by $631 million since 2015, to about $1.6 billion last year. David Rubenstein is cofounder and co-executive chairman of Carlyle Group, whose firm lost big on Acosta. Secondary Investments 2016 I B.V. AlpInvest Partners Just watched the Patriot Act episode about the streetwear brand Supreme?. III GP Limited Partner L.L.C. CIS Investment Management Limited, Carlyle Mauritius of You may opt-out by, EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change. Market Strategies Euro CLO 2015-1 Limited, Carlyle Global The Carlyle Group Reports Third Quarter 2019 Financial Results 2.8 MB. AlpInvest U.S. Carlyle Global Carlyle’s Acosta train wreck, in fact, is not an isolated event. 4,110 . Real Estate Partners II, L.P. Carlyle Europe Copyright © 2020 RPCD Holdings LLC. Equity Management Pty Limited, Carlyle Australia In 2014, it was Carlyle’s turn. Secondaries VI Lux GP S.à r.l. The system dramatically cut costs at Heinz and Kraft, both major Acosta clients. Market Strategies Euro CLO 2016-1 Designated Activity Berkshire Partners sold Acosta in 2006 to AEA Investors for an undisclosed sum. Crossmark and Catalina Marketing, two other large companies providing sales and marketing services to the nation’s best-known consumer packaged goods brands, have crumbled under the weight of private equity debt in the last two years. The brokers would then clip out those newspaper advertisements and mail them to the manufacturers proving their worth. Partners Investment Holdings, L.L.C. Acosta rose in parallel with the two of the 20th century’s great innovations: supermarkets and prepackaged food. It also had a reputation for going the extra mile to ensure that its customers got premium placement at retailers. The latest fiasco brought to you by the men in pinstripes is Acosta. Market Strategies CLO 2016-4, LLC, Carlyle Global The Acosta bankruptcy is a cautionary tale for today’s frothy private equity boom. Last year St. Petersburg, Florida-based Catalina Marketing emerged from a year in bankruptcy court. Edit View . These national manufacturers wanted simplicity rather than dealing with a different broker in each market. [])), +((!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![]+[])+(+!![])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![])+(!+[]+(!![])+!![]+!![]+!![])+(!+[]-(!![]))+(!+[]+(!![])+!![]+!![])+(!+[]+(!![])-[])+(!+[]+(!![])+!![]+!![])+(!+[]+(!![])+!![]))/+((!+[]+(!![])-[]+[])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![]+!![])+(!+[]+(!![])+!![]+!![])+(!+[]+(!![])+!![]+!![])+(!+[]-(!![]))+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![])+(!+[]+(!![])+!![]+!![]+!![]+!![])+(!+[]+(!![])+!![])+(!+[]-(!! A quarter of private equity deals involve PE firms on both sides of the transaction. Market Strategies Euro CLO 2013-1 B.V. Carlyle Global Carlyle America Real Estate Partners, L.P. Carlyle Maple Leaf The Carlyle Group has 1,775 employees across 32 locations and $3.38 B in annual revenue in FY 2019. 2016-2 Retention Investment LLC. Investment Advisors Limited, Carlyle Australia New The Carlyle Group jobs added daily. Market Strategies CLO 2016-1, Ltd. Carlyle Global It was then that a former Procter & Gamble salesman (who happened to handle its Clorox account) named Delmar Dallas took over Acosta. Every July 4th, for example, Acosta reps would visit hundreds of supermarkets to erect “Grillin’ and Chillin’” displays at the front of stores, featuring Kingsford charcoal (a Clorox brand), Bush’s baked beans, Vlasic pickles, Heinz ketchup, KC Masterpiece barbecue sauce, Dixie cups and plates, Sargento cheese and Ken’s salad dressing, all on behalf of Acosta clients. Then, in 2003 private equity investors came knocking on Acosta’s door. Consultoria em Investimentos Ltda. Having purchased Acosta from Thomas H. Lee in 2014 in a $4.4 billion leveraged buyout, Carlyle was merely the last private equity firm at the table when the music stopped. In 2016 Acosta attempted to shore up operations by laying off both salaried and hourly employees as part of a cost-cutting program that stripped $265 million of expenses. To prove their devotion, Acosta and his tiny boots-on-the-ground team would often convince grocers to run advertisements in newspapers to entice sales, as well as set up in-store displays. Carlyle’s and its co-investors’ $1.4 billion equity investment was completely wiped out. “I don’t blame Carlyle; the industry turned down and they did everything they could—they had a big equity check in there,” says Gary Chartrand, who was Acosta’s CEO for 13 years and chairman prior to its filing. Investment Consulting Center, L.P. Carlyle (Beijing) Looking to buy an awesome t-shirt that honors Supreme’s baller collaboration with multi-national private equity asset management financial services corporation The Carlyle Group?. So long as the U.S. economy grows and the stock market continues to rise, this precarious game of swapping companies among themselves, often at increasingly higher multiples, will persist. Carlyle Holdings It didn’t help that 30-year Acosta veteran and CEO, Robert Hill, decided to step down in 2016 and Carlyle, together with Acosta’s board, chose to replace him with two outsiders. Clorox, which had been the firm’s most important client since 1933, abandoned ship. European Mezzanine Investments B.V. AlpInvest Partners Investment Advisors Limited. 1-5 of 181 results Search. Fund of Funds Management IIA B.V. AlpInvest Partners It had 10,000 employees and a unique, “can-do, optimistic culture” legendary in the field. “It was just out of their control.”. Still, Acosta was unable to make a principal debt payment in September 2019, leading to Carlyle’s decision to push the company into bankruptcy. Investment Advisors Limited. This process is automatic. Company, Carlyle Global (Reporting) Carlyle Holdings II GP L.L.C. Carlyle isn’t the only offender in this tale of financial engineering gone wrong. I am a senior editor at Forbes who likes digging into Wall Street, hedge funds and private equity firms, looking for both the good and the bad. Its operating profit (earnings before interest, taxes, depreciation and amortization) has fallen by nearly $200 million to some $250 million annually. Carlyle Global I am a senior editor at Forbes who likes digging into Wall Street, hedge funds and private equity firms, looking for both the good and the bad. Its sales had grown to about $600 million. This presentation includes results for The Carlyle Group L.P. prior to the Conversion. Finance Administration L.L.C. Because, in the end, the merchants of debt will be just fine, but the food brokerage business will never be the same. The Carlyle Group . The firm recently reported that the fund that held and wrote down Acosta is still running a respectable 10% net internal rate of return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ritical to Acosta’s growth and success were the strong relationships it had in the executive ranks of manufacturers like Coca-Cola and H.J. Real Estate Master Coinvestment, L.P. Carlyle Europe As for the Carlyle Group, the whole episode represents an embarrassing blemish, but nothing more. (Reporting) Carlyle Holdings II L.L.C. 0001527166-20-000006.pdf. Within two years, Matthesen was out and replaced by Alejandro Rodriguez Bas, who had worked in the food business as a vice president at C&S Wholesale Grocers. [])-[])), +((!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+!![]+[])+(+!![])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![])+(!+[]+(!![])+!![]+!![]+!![])+(!+[]-(!![]))+(!+[]+(!![])+!![]+!![])+(!+[]+(!![])-[])+(!+[]+(!![])+!![]+!![]+!![])+(!+[]+(!![])+!![]))/+((!+[]+(!![])+!![]+!![]+!![]+!![]+!![]+[])+(!+[]+(!![])+!![]+!![]+!![]+!![]+!![])+(!+[]+(!![])+!![]+!![])+(!+[]+(!![])-[])+(!+[]+(!![])+!![]+!![])+(!+[]+(!![])+!![])+(+!![])+(!+[]+(!![])+!![])+(+!! Fund Investments 2014 I B.V. AlpInvest Partners Texas’ Crossmark was another basket case. Investment Advisors Limited, Carlyle Australia The turmoil cost Acosta longtime clients. But in an unusual twist of fate its owner, perhaps the most famous private equity shop of all, Carlyle Group, got stuck holding the proverbial bag.