The Carlyle Group, Riverstone Agree to Sell Quorum Business Solutions to Silver Lake

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The Carlyle Group, Riverstone Agree to Sell Quorum Business Solutions to Silver Lake

Transaction Marks Latest Successful Vertical Market Software Exit by Carlyle

Washington, DC – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that they and Riverstone Holdings LLC have agreed to sell Houston-based Quorum Business Solutions, Inc., a provider of business and information technology solutions for the oil, gas, and renewable energy industry, to Silver Lake Partners and Silver Lake Kraftwerk. Terms of the transaction, which is expected to close as soon as customary regulatory approvals are received, were not disclosed.

Carlyle Operating Executive Charles Rossotti said, “We have greatly enjoyed our partnership with the Quorum management team, who did an exceptional job building Quorum into a best-in-class, customer-focused provider of business and information technology solutions to the economically important oil, gas and renewables sectors and positioning the company and their customers for continued success.”

Carlyle Managing Director Steve Bailey added, “We thank the Quorum management team for enabling this, our fifth recent exit from a vertical market software company, an area of focus for our middle market investment team.  We wish them continued success with Silver Lake.”

R. Scott Leeds, Co-Founder, and Executive Chairman and Perry Turbes, President and Chief Executive Officer of Quorum, said, “Our company grew and developed tremendously during our four years working with Carlyle and Riverstone.  Carlyle contributed their vertical market software experience, which assisted us in evolving our business model, while Riverstone brought their energy industry knowledge. We look forward to the next chapter and continued success with Silver Lake to serve our customers in this growing and fast-changing energy industry.”

During their ownership, Carlyle and Riverstone worked to help management create value at Quorum in a number of ways such as supporting and assisting management with the Company’s introduction of subscription license solutions.

Carlyle’s U.S. Equity Opportunity team, which made this investment, is focused on middle market investments. Carlyle has a long history of investments in middle market, industry-specific application software solutions companies, including:

  • Carefx, serving the healthcare sector
  • Compusearch, serving the government sector
  • ECi, serving small and medium-sized businesses across a range of industry sectors
  • Gemcom, serving the mining sector
  • Primatics, serving the financial services sector
  • RMI, serving the rail sector
  • SchoolNet, serving the education sector

Carlyle and Riverstone first invested in Quorum in 2010, with equity capital from Carlyle Growth Partners III, L.P., Riverstone/Carlyle Global Energy & Power Fund IV, L.P., and management.

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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $199 billion of assets under management across 120 funds and 133 fund of funds vehicles as of March 31, 2014. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,600 people in 38 offices across six continents.

About Riverstone Holdings LLC
Riverstone is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately $27 billion of equity capital raised. Riverstone conducts buyout and growth capital investments in the exploration & production, midstream, oilfield services, power and renewable sectors of the energy industry. With offices in New York, London, Houston and Mexico City, the firm has committed approximately $26.1 billion to 108 investments in North America, Latin America, Europe, Africa, and Asia.

About Quorum Business Solutions, Inc.
Quorum Business Solutions, Inc. develops, implements, and supports software solutions for the oil & gas industry. Quorum offers an integrated suite of business applications for companies that produce, gather, process, transport, store, distribute, and market crude oil, natural gas, NGLs, LNG, and wind-generated power. The Quorum suite includes software solutions that manage operational, administrative, financial, and transactional business processes for oil & gas. Products within the suite offer inherent integration to support data flow across the value chain, and are also capable of operating stand-alone. Founded in 1998, Quorum employs over 400 staff operating out of Houston, Dallas, and Calgary. Quorum has ongoing relationships with over 185 clients, comprised of super-majors, independents, operators, and non-operating owners, including 25 Fortune 500 Companies. Throughout its 16 year history, Quorum has successfully completed over 975 software solution deployments. For more information on Quorum, please visit http://www.qbsol.com.

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