SRZ represented hedge fund Claren Road Asset Management and its principals in the sale of a majority stake to global alternative asset manager The Carlyle Group. The consideration for the 55 percent stake in Claren Road sold to Carlyle was cash, an equity interest in Carlyle and a performance-based earn-out. Claren Road is a long-short credit hedge fund with $4.5 billion in assets under management. Claren Road was established in 2005 by the four former senior members of Citigroup’s Credit Trading Department, who stayed on to continue to manage the operations and work with Carlyle to affect broader strategic decisions.