Carlyle Makes A Killing With Defense Sale

London -
We all know that making a handsome profit is the raison d'etre of private equity firms, but some seem to take the pursuit to a whole other level. The Carlyle Group raked in an 800% return on its investment on Friday when it sewed up the sale of its 10.3% stake in QinetiQ Group, the British defense research company, said to be the inspiration behind doddering gadget maven Q in the James Bond films.

Carlyle had bought a 30% stake in the company in 2002 for just £42.4 million ($82.7 million), and listed 19.7% of that last year to make nearly $400 million.

Reports said the Washington, D.C.-based private equity company had sold the rest of its stake to institutional investors. The sale was presided over by Credit Suisse, JPMorgan Cazenove and Merrill Lynch International.

The British government still holds a 19.2% stake in QinetiQ (other-otc: QNTQY - news - people ), worth around £330 million ($643.4 million), but it had reduced its 56% stake in February 2006 by listing QinetiQ on the London Stock Exchange.

That was one of the biggest privatizations Prime Minister Tony Blair had resided over since he came to power in 1997, raising some £617.5 million ($1.2 billion).

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I guess the poodle is lining up his future employment

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