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===Carlyle in the early 2000s=== Carlyle's 2001 investor conference took place on September 11, 2001. In the weeks following the meeting, it was reported that [[Shafiq bin Laden]], a member of the [[Bin Laden family]], had been the "guest of honor", and that they were investors in Carlyle-managed funds.<ref name="TheBookOnBush" /><ref name="glassman" /><ref name="TheEconomist" /><ref name="TheGuardian" /><ref name="Nsnbc" /> Later reports confirmed that the Bin Laden family had invested $2 million into Carlyle's $1.3 billion Carlyle Partners II Fund in 1995, making the family relatively small investors with the firm. However, their overall investment might have been considerably larger, with the $2 million committed in 1995 only being an initial contribution that grew over time.<ref>{{cite news|date=September 27, 2001|title=Bin Laden Family Is Tied To U.S. Group|newspaper=The Wall Street Journal}}</ref> These connections would later be profiled in [[Michael Moore]]'s ''[[Fahrenheit 9/11]]''. The Bin Laden family liquidated its holdings in Carlyle's funds in October 2001, just after the September 11 attacks, when the connection of their family name to the Carlyle Group's name became impolitic.<ref>{{cite news|last=Eichenwald|first=Kurt|date=October 26, 2001|title=Bin Laden Family Liquidates Holdings With Carlyle Group|newspaper=The New York Times|url=https://www.nytimes.com/2001/10/26/business/bin-laden-family-liquidates-holdings-with-carlyle-group.html|url-status=live|access-date=August 21, 2020|archive-url=https://web.archive.org/web/20080421092850/http://query.nytimes.com/gst/fullpage.html?res=9400E5DD1031F935A15753C1A9679C8B63|archive-date=April 21, 2008}}</ref> Buyouts declined after the collapse of the [[dot-com bubble]] in 2000 and 2001. But after the two-stage buyout of [[Dex Media]] at the end of 2002 and 2003, large multibillion-dollar U.S. buyouts could once again obtain high-yield debt financing and larger transactions could be completed. Carlyle, together with [[Welsh, Carson, Anderson & Stowe]], led a $7.5 billion buyout of QwestDex,<ref>{{Cite web|date=October 24, 2002|title=Carlyle and Welsh snap up QwestDex|url=https://www.privatedebtinvestor.com/carlyle-and-welsh-snap-up-qwestdex/|access-date=April 9, 2018|work=Private Debt Investor|language=en-US}}</ref> the third-largest corporate buyout since 1989.<ref>{{Cite news|last=Heath|first=Thomas|date=June 3, 2011|title=Carlyle Group is ready for its close-up|language=en-US|newspaper=The Washington Post|url=https://www.washingtonpost.com/business/economy/carlyle-group-is-ready-for-its-close-up/2011/05/24/AGnPf4HH_story.html|access-date=April 9, 2018|issn=0190-8286}}</ref> QwestDex's purchase occurred in two stages: a $2.75 billion acquisition of assets known as Dex Media East in November 2002 and a $4.30 billion acquisition of assets known as Dex Media West in 2003.<ref>{{Cite news|date=August 20, 2002|title=Qwest to Sell Directories Business for $7 Billion|language=en-US|newspaper=Los Angeles Times|url=https://www.latimes.com/archives/la-xpm-2002-aug-20-fi-qwest20-story.html|access-date=April 9, 2018|issn=0458-3035}}</ref> [[R. H. Donnelley|R. H. Donnelley Corporation]] acquired Dex Media in 2006.<ref>{{Cite web|date=October 4, 2005|title=R.H. Donnelley Buys Dex Media|url=https://www.mediapost.com/publications/article/34778/rh-donnelley-buys-dex-media.html|access-date=April 9, 2018|website=MediaDailyNews}}</ref> [[Lou Gerstner]], former chairman and CEO of [[IBM]] and [[Nabisco]], replaced [[Frank Carlucci]] as chairman of Carlyle in January 2003.<ref>{{Cite news|last=Lohr|first=Steve|date=November 22, 2002|title=Gerstner to Be Chairman of Carlyle Group|language=en-US|newspaper=The New York Times|url=https://www.nytimes.com/2002/11/22/business/gerstner-to-be-chairman-of-carlyle-group.html|access-date=April 9, 2018|issn=0362-4331}}</ref><ref>{{cite news|last1=Scannell|first1=Kara|last2=Bulkeley|first2=William M.|date=November 22, 2002|title=IBM's Gerstner to Join Carlyle As Investment Firm's Chairman|newspaper=The Wall Street Journal|url=https://www.wsj.com/articles/SB1037893592918171788|access-date=August 21, 2020}}</ref><ref name="gerstner2">{{cite news|date=November 22, 2002|title=Gerstner to Be Carlyle Group Chairman; Former IBM Chief Brings Long List of Contacts to Private Equity Firm|newspaper=The Washington Post}}</ref> Gerstner would serve in that position through October 2008.<ref>{{Cite web|title=Executive Profile: Louis V. Gerstner Jr.|url=https://www.bloomberg.com/markets/stocks|access-date=April 9, 2018|website=Bloomberg.com}}</ref><ref>{{Cite news|last=de la Merced|first=Michael J.|date=August 19, 2008|title=Leader of the Carlyle Group to Leave Post in September|language=en-US|newspaper=The New York Times|url=https://www.nytimes.com/2008/08/20/business/20carlyle.html|access-date=April 9, 2018|issn=0362-4331}}</ref> The hiring of Gerstner was intended to reduce the perception of Carlyle as a politically dominated firm.<ref>{{cite news|last=Sender|first=Henny|date=August 25, 2003|title=The Man Behind the Curtain at Carlyle Group|newspaper=The Wall Street Journal|url=https://www.wsj.com/articles/SB10617634897030200|access-date=August 21, 2020}}</ref> At the time, Carlyle, which had been founded 15 years earlier, had accumulated $13.9 billion of assets under management and had generated annualized returns for investors of 36%.<ref name="gerstner2" /> Carlyle also announced the $1.6 billion acquisition of [[Hawaiian Telcom]] from [[Verizon]] in May 2004.<ref>{{cite news|author=<!--Staff writer(s); no by-line.-->|date=May 22, 2004|title=Verizon Sells Hawaiian Unit For $1.6 Billion|newspaper=The New York Times|url=https://www.nytimes.com/2004/05/22/business/company-news-verizon-sells-hawaiian-unit-for-1.6-billion.html|access-date=August 21, 2020}}</ref> Carlyle's investment was immediately challenged when Hawaii regulators delayed the closing of the buyout. The company also suffered billing and customer-service issues as it had to recreate its back-office systems. Hawaiian Telcom ultimately filed for bankruptcy in December 2008, costing Carlyle the $425 million it had invested in the company.<ref>{{cite news|last=Lattman|first=Peter|date=December 2, 2008|title=Carlyle's Bet on Telecom in Hawaii Ends Badly|newspaper=The Wall Street Journal|url=http://online.wsj.com/article/SB122816620702669991.html|access-date=August 21, 2020}}</ref> [[File:Hertz car rental office Livonia Michigan.JPG|thumb|left|Carlyle led the $15 billion buyout of [[The Hertz Corporation|Hertz]] in 2005.]] As the activity of the large private equity firms increased in the mid-2000s, Carlyle kept pace with such competitors as [[Kohlberg Kravis Roberts|KKR]], [[Blackstone Group]], and [[TPG Capital]]. In 2005, Carlyle, together with [[Clayton, Dubilier & Rice]] and [[Merrill Lynch]] completed the $15.0 billion leveraged buyout of [[The Hertz Corporation]], the largest car rental agency from [[Ford Motor Company|Ford]].<ref>{{cite news|last1=Sorkin|first1=Andrew Ross|last2=Hakim|first2=Danny|date=September 8, 2005|title=Ford Said to Be Ready to Pursue a Hertz Sale|newspaper=The New York Times|url=https://www.nytimes.com/2005/09/08/business/08ford.html|access-date=August 21, 2020}}</ref><ref>{{cite news|last=Peters|first=Jeremy W.|date=September 13, 2005|title=Ford Completes Sale of Hertz to 3 Firms|newspaper=The New York Times|url=https://www.nytimes.com/2005/09/13/business/13hertz.html|access-date=August 21, 2020}}</ref> The following year, in August 2006, Carlyle and its [[Riverstone Holdings]] affiliate partnered with [[Goldman Sachs Capital Partners]] in the $27.5 billion (including assumed debt) acquisition of [[Kinder Morgan]], one of the largest pipeline operators in the US.<ref>{{Cite book |last=Kumar |first=B. |title=Mega Mergers and Acquisitions: Case Studies from Key Industries |publisher=Springer |year=2012 |isbn=978-1-137-00589-2 |edition=1st |location=New York |pages=177 |language=en}}</ref> The buyout was backed by [[Richard Kinder]], the company's co-founder and a former president of [[Enron]].<ref>{{cite news|last=Mouawad|first=Jad|date=August 29, 2006|title=Kinder Morgan Agrees to an Improved Buyout Offer Led by Its Chairman|newspaper=The New York Times|url=https://www.nytimes.com/2006/08/29/business/29kinder.html|access-date=August 21, 2020}}</ref> In September 2006, Carlyle led a consortium, comprising [[Blackstone Group]], [[Permira]] and [[TPG Capital]], in the $17.6 billion takeover of [[Freescale Semiconductor]]. At the time of its announcement, Freescale would be the largest leveraged buyout of a technology company ever, surpassing the 2005 buyout of [[SunGard]]. The buyers were forced to pay an extra $800 million because KKR made a last-minute bid as the original deal was about to be signed. Shortly after the deal closed in late 2006, cell phone sales at Motorola Corp., Freescale's former corporate parent and a major customer, began dropping sharply. In addition, in the recession of 2008β2009, Freescale's chip sales to automakers fell off, and the company came under great financial strain.<ref>{{cite book|last1=Carey|first1=David|title=King of Capital|last2=Morris|first2=John E.|date=2010|publisher=[[Crown Publishers]]|isbn=978-0-3074-5299-3|location=New York|pages=231β235}}</ref><ref>{{cite news|last1=Sorkin|first1=Andrew Ross|last2=Flynn|first2=Laurie J.|date=September 16, 2006|title=Blackstone Alliance to Buy Chip Maker for $17.6 Billion|newspaper=The New York Times|url=https://www.nytimes.com/2006/09/16/business/16freescale.html|access-date=August 21, 2020}}</ref> Earlier that year, in January 2006, Carlyle together with [[Blackstone Group]], [[AlpInvest Partners]], [[Hellman & Friedman]], [[Kohlberg Kravis Roberts|KKR]] and [[Thomas H. Lee Partners]] acquired [[Nielsen Company]], the global information and media company formerly known as VNU in an $8.9 billion buyout.<ref>{{cite web|last=Goldsmith|first=Charles|date=March 8, 2006|title=VNU Shareholders Reject $8.9 Bln Offer From KKR Group (Update2)|url=https://www.bloomberg.com/apps/news?pid=10000085&sid=apnoYIe8t31A&refer=europe|archive-url=https://web.archive.org/web/20090117121207/https://www.bloomberg.com/apps/news?pid=10000085&sid=apnoYIe8t31A&refer=europe|archive-date=January 17, 2009|access-date=October 16, 2015|website=Bloomberg}}</ref><ref>{{cite news|last1=Pfanner|first1=Eric|last2=Timmons|first2=Heather|date=January 17, 2006|title=Buyout Bid For Parent of Nielsen|newspaper=The New York Times|url=https://query.nytimes.com/gst/fullpage.html?res=9407E0DA143FF934A25752C0A9609C8B63|access-date=August 21, 2020}}</ref><ref>{{cite press release|url=http://www.nielsen.com/media/2006/pr_2006_0308_2.pdf|title=VNU Agrees To Public Offer From Private Equity Group|date=March 8, 2006|publisher=VNU N.V. and Valcon Acquisition B.V.|archive-url=https://web.archive.org/web/20081116192808/http://www.nielsen.com/media/2006/pr_2006_0308_2.pdf|archive-date=November 16, 2008}}</ref> Also in 2006, Carlyle acquired [[Oriental Trading Company]] which ultimately declared bankruptcy in August 2010<ref>{{cite web|last=McCarty|first=Dawn|date=August 25, 2010|title=Oriental Trading Co. Files for Bankruptcy in Delaware|url=https://www.bloomberg.com/news/2010-08-25/oriental-trading-co-files-for-bankruptcy-with-as-much-as-1-billion-debt.html|access-date=September 28, 2010|website=Bloomberg}}</ref> as well as Forba Dental Management, the owner of [[Small Smiles Dental Centers]], the largest US chain of dental clinics for children.<ref>{{cite web|title=Portfolio: Forba LLC|url=http://www.carlyle.com/Portfolio/item7490.html|archive-url=https://web.archive.org/web/20080829004004/http://www.carlyle.com/Portfolio/item7490.html|archive-date=August 29, 2008|website=The Carlyle Group}}</ref>
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