Carlyle Group has secured private credit financing to acquire a majority stake in Australian waste management company Waste Services Group (WSG), according to a report by Bloomberg, citing sources familiar with the matter.
The private equity firm arranged a unitranche loan exceeding AUD500m ($318m) from lenders including Ares Management, KKR Credit Advisors, and UBS Group AG. The funds will support Carlyle’s purchase of the stake from Livingbridge, the anonymous source said.
Carlyle announced Monday that the equity for its investment will come from its Carlyle Asia Partners funds. While the firm did not disclose financial terms, it noted that Livingbridge will retain a “significant” minority stake in the business through reinvestment.
Initially, Carlyle explored using a traditional leveraged buyout bank loan for the acquisition, but ultimately opted for private credit, the source added without providing further details.
Representatives from Carlyle, Ares, KKR Credit, and UBS declined to comment.
Australia’s leveraged buyout activity has been gaining traction, driven by narrowing valuation gaps between buyers and sellers. This trend has created opportunities for lenders eager to back such deals.
Notable recent transactions include Blackstone’s AUD24bn acquisition of AirTrunk Operating and Vocus Group’s purchase of TPG Telecom’s fibre network.
WSG, founded in 2016, provides waste collection and recycling services in Victoria and New South Wales.
