Carlyle, the US and international private equity giant, has surprised rivals in the alternative asset management industry by spinning off the hedge fund business it founded just two years ago.

A spokeswoman for Carlyle confirmed the firm has sold the majority interest in the business, still called Carlyle Asset Management Group, to management. The management team is headed by Afsaneh Beschloss, who joined Carlyle from the World Bank in 2001 to set up the business and allow Carlyle to extend its operations into fund of hedge funds.