Editing The Carlyle Group (section)

===Founding and early history===
Carlyle was founded in 1987 as a [[boutique investment bank]] by five partners with backgrounds in finance and government: [[William E. Conway Jr.]], [[Stephen L. Norris]], [[David Rubenstein]], [[Daniel A. D'Aniello]] and [[Greg Rosenbaum]].<ref>{{cite news|last=Vise|first=David A.|date=October 5, 1987|title=Area Merchant Banking Firm Formed|newspaper=[[The Washington Post]]|url=https://www.washingtonpost.com/archive/business/1987/10/05/area-merchant-banking-firm-formed/c567202c-e8ed-409a-8c08-d552e1857844/|access-date=August 21, 2020}}</ref> The founding partners named the firm after the [[Carlyle Hotel]] in [[New York City]] (named for [[Thomas Carlyle]])<ref>{{Cite web |title=Our Story {{!}} The Carlyle, A Rosewood Hotel |url=https://www.rosewoodhotels.com/en/the-carlyle-new-york/overview/our-story |access-date=August 6, 2022 |website=www.rosewoodhotels.com |language=en}}</ref> where Norris and Rubenstein had planned the new investment business.<ref name="goingbeyond">{{cite news|last=Mintz|first=John|date=January 9, 1995|title=Founder Going Beyond the Carlyle Group|newspaper=The Washington Post|url=https://www.washingtonpost.com/archive/business/1995/01/09/founder-going-beyond-the-carlyle-group/7149a5b8-29e0-4422-a46c-21fd0c42d2eb/|access-date=August 21, 2020}}</ref>  Rubenstein, a [[Washington, D.C.|Washington]]-based lawyer, had worked in the [[Carter Administration]].<ref>{{Cite book |last=Eizenstat |first=Stuart E. |title=President Carter: The White House Years |publisher=St. Martin's Publishing Group |year=2018 |isbn=978-1-250-10457-1 |pages=99 |language=en}}</ref>  Norris and D'Aneillo had worked together at [[Marriott Corporation]];<ref>{{Cite news |last=Gilpin |first=Kenneth N. |date=1991-03-26 |title=Little-Known Carlyle Scores Big |url=https://www.nytimes.com/1991/03/26/business/little-known-carlyle-scores-big.html |access-date=2024-05-22 |work=The New York Times |language=en-US |issn=0362-4331}}</ref> Conway was a finance executive at [[MCI Communications]].  Rosenbaum left in the first year<ref name="chichi">{{cite news|last=Farhi|first=Paul|date=June 6, 1988|title=Chi-Chi's Bid Won D.C. Investment Firm Wall Street's Attention|newspaper=The Washington Post}}</ref> and Norris departed in 1995.<ref name="goingbeyond" /><ref>{{cite web|last=Thornton|first=Emily|date=February 12, 2007|title=Carlyle Changes Its Stripes|url=http://www.businessweek.com/magazine/content/07_07/b4021001.htm|archive-url=https://web.archive.org/web/20070228163811/http://www.businessweek.com/magazine/content/07_07/b4021001.htm|archive-date=February 28, 2007|website=[[BusinessWeek]]}}</ref> Rubenstein, Conway and D'Aneillo remain active in the business. Carlyle was founded with $5&nbsp;million of financial backing from [[T. Rowe Price]], [[Alex. Brown & Sons]], First Interstate Equities, and the [[Richard King Mellon]] family.<ref>{{cite news|author=<!--Staff writer(s); no by-line.-->|date=January 30, 1989|title=Carlucci Takes Job at Carlyle Group|newspaper=[[The New York Times]]|url=https://www.nytimes.com/1989/01/30/business/carlucci-takes-job-at-carlyle-group.html|access-date=August 21, 2020}}</ref><ref name="littleknowncarlyle">{{cite news|last=Gilpin|first=Kenneth N.|date=March 26, 1991|title=Little-Known Carlyle Scores Big|newspaper=The New York Times|url=https://www.nytimes.com/1991/03/26/business/little-known-carlyle-scores-big.html|access-date=August 21, 2020}}</ref>
 
In the late 1980s, Carlyle raised capital deal-by-deal to pursue [[leveraged buyout]] investments, including a failed takeover battle for [[Chi-Chi's]].<ref name="chichi" /><ref name="littleknowncarlyle" />  The firm raised its first dedicated buyout fund with $100&nbsp;million of investor commitments in 1990.  In its early years, Carlyle also advised in transactions including, in 1991, a $500&nbsp;million investment in Citigroup by [[Prince Al-Waleed bin Talal]], a member of the [[Saudi royal family]].<ref name="littleknowncarlyle" />

Carlyle developed a reputation for acquiring businesses related to the defense industry.  In 1992, Carlyle completed the acquisition of the Electronics division of General Dynamics Corporation, renamed GDE Systems, a producer of military electronics systems.<ref>{{cite news|author=<!--Staff writer(s); no by-line.-->|date=October 6, 1992|title=General Dynamics Sells Unit To Private Group|newspaper=The New York Times|url=https://www.nytimes.com/1992/10/06/business/company-news-general-dynamics-sells-unit-to-private-group.html|access-date=August 21, 2020}}</ref>  Carlyle would sell the business to [[Tracor]] in October 1994.<ref>{{cite news|author=<!--Staff writer(s); no by-line.-->|date=October 14, 1994|title=Tracor To Buy GDE Systems From Carlyle Group|newspaper=The New York Times|url=https://www.nytimes.com/1994/10/14/business/company-news-tracor-to-buy-gde-systems-from-carlyle-group.html|access-date=August 21, 2020}}</ref>  Carlyle acquired [[Magnavox Electronic Systems]], the military communications and electronic-warfare systems segment of Magnavox, from [[Philips|Philips Electronics]] in 1993.<ref>{{cite news|author=<!--Staff writer(s); no by-line.-->|date=July 28, 1993|title=Philips To Sell Magnavox Electronic Systems|newspaper=The New York Times|url=https://www.nytimes.com/1993/07/28/business/company-news-philips-to-sell-magnavox-electronic-systems.html|access-date=August 21, 2020}}</ref>  Carlyle sold Magnavox for about $370&nbsp;million to [[Hughes Aircraft Company]] in 1995.  Carlyle also invested in [[Vought Aircraft]] through a partnership with [[Northrop Grumman]].<ref>{{cite news|author=<!--Staff writer(s); no by-line.-->|date=September 12, 1995|title=Hughes Aircraft Sets Purchase of Magnavox for $370 Million|newspaper=The New York Times|url=https://www.nytimes.com/1995/09/12/business/hughes-aircraft-sets-purchase-of-magnavox-for-370-million.html|access-date=August 21, 2020}}</ref>  Carlyle's most notable defense industry investment came in October 1997 with its acquisition of [[United Defense|United Defense Industries]].  The $850&nbsp;million acquisition of United Defense represented Carlyle's largest investment to that point.<ref name="uniteddef">{{cite news|last=Pasztor|first=Andy|date=August 27, 1997|title=Carlyle Beats General Dynamics In Bidding for United Defense|newspaper=The Wall Street Journal|url=https://www.wsj.com/articles/SB872599088507278500|access-date=August 21, 2020}}</ref><ref>{{cite news|last=Gilpin|first=Kenneth N.|date=August 27, 1997|title=Military Contractor Sold to Buyout Firm|newspaper=The New York Times|url=https://www.nytimes.com/1997/08/27/business/military-contractor-sold-to-buyout-firm.html|access-date=August 21, 2020}}</ref>  Carlyle completed an IPO of United Defense on the [[New York Stock Exchange]] in December 2001, then sold the rest of the stock in April 2004.<ref>{{cite web|date=July 31, 2005|title=United Defense Industries|url=http://www.globalsecurity.org/military/industry/udi.htm|access-date=October 22, 2008|website=GlobalSecurity.org}}</ref> In more recent years, Carlyle has invested less in the defense industry.<ref name="noeffect" />