Carlyle Group Acquires Crestview’s NEP Stake
Carlyle Global Partners, Carlyle’s long-duration private equity fund, has agreed to acquire Crestview’s remaining shareholding in NEP. Carlyle initially invested in NEP alongside Crestview and management in June 2016 and, following this transaction, will hold a majority interest in NEP. Carlyle will continue to support management’s strategy of building a diversified worldwide outsourced technical production partner supporting premier content producers of live sports and entertainment.
“We’re excited to continue our partnership with Carlyle as we look to expand NEPs global footprint and service offering. Carlyle Global Partners brings industry expertise, a global network and long-duration capital to support our business and worldwide growth strategy,” says Kevin Rabbitt, CEO of NEP. “We thank Crestview for their support and partnership over the last six years as we expanded our footprint and service offering to become a diversified, global leader.”
Carlyle launched its longer-duration private equity strategy, Carlyle Global Partners, in 2014 to pursue opportunities that leverage Carlyle’s expertise, resources, and global platform in investments that benefit from longer hold periods and structural flexibility. The fund has made eight investments to date.
“The management team has grown the business significantly since our original investment. We look forward to continuing to partner with them to build NEP into a fully diversified global outsourced production services business,” says Tyler Zachem, Managing Director and Co-head of Carlyle Global Partners. “We thank Crestview for their support of the business over the last six years and have enjoyed partnering with them.”
“We want to thank CEO Kevin Rabbitt and the rest of the NEP management team for transforming the company from a primarily US-based mobile unit and studios business into the global leader in outsourced production services for live sports, entertainment, and corporate events,” adds Brian Cassidy, Partner and Head of Media at Crestview Partners. “Since our investment in December 2012, NEP has scaled operations from 2 countries to 24, completed 27 acquisitions, and greatly expanded its breadth of capabilities to better serve its global clients. Carlyle has been a great partner the last two years, and we wish them and the company continued success in the future.”
Jones Day served as legal advisors to NEP on the transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisors to Crestview on the transaction. Debevoise & Plimpton LLP served as legal advisors to Carlyle on the transaction. J.P. Morgan Securities LLC, Barclays and Patricof Co served as financial advisors to the Company. Berenson & Company, LLC served as financial advisor to Carlyle.