DBRS Ltd. to be acquired by Carlyle Group LP and Warburg Pincus

DBRS Ltd., the largest credit rating agency in Canada, is going to be acquired by the US private equity firms Carlyle Group LP and Warburg Pincus.

“The world needs more global ratings franchises that issuers and investors alike can count on to provide timely and insightful ratings on a consistent and impartial basis,” Carlyle managing director Olivier Sarkozy said in the statement.

The company was founded in Toronto in 1976. DBRS was the only independent Canadian debt-rating agency and eventually grew to become the fourth-largest agency in the world (behind Fitch, S&P and Moodys), with about a 2.5% global market share.

The company is one of only four credit rating agencies to receive ECAI recognition from the European Central Bank (ECB).

Walter Schroeder, who founded DBRS, will stay on as an investor in the company.

DBRS Chief Executive Officer Daniel Curry said:

”With the support and resources of our new partners, DBRS is well positioned to strengthen our leading franchise in Canada and continue to develop our presence across North America and Europe.”

Michael E. Martin, Warburg Pincus Managing Director and Head of Financial Services said:

“DBRS is the market leader in Canada and is recognized around the world for its high-quality insight and analysis. We look forward to partnering with Dan and the rest of the management team in the next phase of the company’s evolution.”

Olivier Sarkozy, Carlyle Managing Director and Head of the Financial Services team said:

”In partnership with Dan Curry and his management team we will continue the build out of the DBRS platform on a global basis. The world needs more global ratings franchises that issuers and investors alike can count on to provide timely and insightful ratings on a consistent and impartial basis. As the world’s fourth largest agency we believe DBRS is ideally suited to fill that void.”

DBRS has approximately 300 employees, most of whom work in Toronto, but is also has a presence in Chicago and New York.

 

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