Last Friday, June 5, we published a story on monsterchildren.com titled “Lights Out Supreme’. The story contained some inaccuracies in regard to The Carlyle Group and we wish to correct those statements.
While the Carlyle Group has an investment in Supreme, the company does not own and never owned the military/police equipment manufacturer CTS (Combined Tactical Systems). As explained in a June 2020 article posted on axios.com, the parent company of CTS, Combined Systems, was acquired in 2005 by a New York-based private equity firm called Point Lookout, and the Carlyle Group participated in that deal 15 years ago as a minority investor at that time. The Carlyle fund holding Combined Systems’ stock has been closed, and its assets sold off. It’s complicated, however, Carlyle only retains a residual equity piece in a trust that it has been unable to exit. Carlyle values the residual equity at zero and has for many years, which means they don’t make any income from it. The team that did the transaction 15 years ago is no longer at the firm.
A source close to the matter says that Carlyle ‘doesn’t make a dime off the investment’ and would not make such an investment today, because it would violate their responsible investing guidelines.
We apologise for any confusion caused, and apologise to the fans and people at Supreme.