Carlyle closes advertising, oil deals

The Carlyle Group has closed two deals this week: one in partnership with HIG Ventures and one with energy-focussed Riverstone Holdings.

The Carlyle Group and HIG Ventures co-led a $20 million (€13.6 million) investment in REVShare, an exchange that applies the cost-per-click method of internet advertising to television.

REVShare runs a bidding system in which advertisers bid for air time based on a price they are willing to pay for each successful response, such as when a viewer calls a toll-free number or visits a website. The company was founded in 1989, and currently has relationships with around 1500 local market television properties, reaching 110 million US households.

REVShare plans to tap Carlyle’s and HIG’s network and media experience to increase its customer base and accelerate its growth, REVShare chief executive Joseph Gray said in a statement.

HIG Ventures is the venture arm of US private equity firm HIG Capital. The venture group’s previous investment in the advertising space was Adscape Media, a California company that develops advertisements that can be placed in video and computer games. Carlyle has invested in several advertising companies, including two in China: Time Share Advertising & Communications in Beijing and Target Media Holdings in Shanghai.

The deal is Carlyle’s second to close in two days. On Monday Carlyle and energy-focussed firm Riverstone Holdings acquired Permian Tank & Manufacturing, a maker of steel and fiberglass storage tanks, treaters, separators and vessels for the oil and gas industries. The terms of that transaction were not disclosed.

The investment was made out of the Carlyle Riverstone Global Energy and Power Fund III. Carlyle and Riverstone are co-general partners of the fund, which closed on $3.8 billion in April 2006.