Carlyle Group and affiliates to buy trader Traxys

Global asset manager Carlyle Group, along with other investors, has agreed to acquire a majority stake in physical metals trader and logistics firm Traxys Group.

Global asset manager Carlyle Group, along with other investors, has agreed to acquire a majority stake in physical metals trader and logistics firm Traxys Group.

Carlyle Group, together with affiliates of Louis M Bacon, the founder, chairman, ceo and principal investment manager of Moore Capital Management have agreed to acquire a majority interest in the Traxys Group.

As part of the transaction, Traxys management will increase its investment stake in the company.

The stake is being bought for an undisclosed sum from private equity firm Pegasus Capital Advisors, Kelso & Co and Resource Capital Funds.

Morgan Stanley acted as financial advisor to Traxys in the transaction, the firms said in a joint statement.

The acquisition comes at a time when banks like Deutsche Bank and JP Morgan are exiting the commodities business. Barclays and Morgan Stanley have downsized their commodities activity while Citi and ABN Amro are beefing up their commodities business.

At the same time, Brazilian bank BTG Pactual is looking to get into the metals business.

Energy trading firms like Vitol and Gunvor are also expanding into the metals trading space.

“This is an excellent time for us to move Traxys forward with Carlyle and Bacon,” Alan Docter, chairman of Traxys, said adding, “I view this as a great opportunity and a perfect time to strengthen our capabilities and continue to grow and invest in Traxys for the future.”

“We are excited about the future of the raw materials markets […],” Mark Kristoff, ceo of Traxys, said.

Traxys is a physical commodities trader and merchant in the metals and natural resources sectors. It is headquartered in Luxembourg and employs 300 people in over 20 offices worldwide. The company’s annual turnover is in excess of $6 billion.

Carlyle Group is a global alternative asset manager with about $189 billion of assets under management across 118 funds and 100 fund of funds vehicles. It employs more than 1,500 people in 34 offices across the world.

Moore Capital, founded by Louis Moore Bacon, in March 1989, is a private investment management firm. It is headquartered in New York, with additional offices in London and Hong Kong.

Shivani Singh
shivani.singh@metalbulletinasia.com
Twitter: @ShivaniSingh_MB