Carlyle raises $4.6 billion for second credit fund
Reuters
Published Apr 06, 2022 06:06AM ET
Updated Apr 06, 2022 06:50AM ET
(Corrects to show size of inaugural fund $2.4 billion (not $2.7 billion), paragraph 3)
By Chibuike Oguh
(Reuters) -Carlyle Group Inc said on Wednesday it has raised $4.6 billion for its second credit fund that provides debt financing to companies, including family-owned businesses and private equity-backed firms.
The new fund, Carlyle Credit Opportunities Fund II, exceeded its initial target of $3.5 billion and is expected have up to $6 billion to deploy when accounting for its ability to borrow.
The fund has already invested $3.8 billion of its available capital in 22 businesses across North America and Europe, Alex Popov, Carlyle's head of illiquid credit strategies, said in an interview. It is nearly double the size of the inaugural fund, which collected $2.4 billion from investors in 2019 and had generated a net internal rate of return (IRR) of 15% as of the end of last year.
"We are continuing to see significant transitional capital opportunities in the current market," Popov said.
The fund provides transitional capital for companies and businesses for circumstances including "a major acquisition, expansion into a different market, or a change of ownership," he said.
Carlyle's investments include a 320 million pounds debt financing package to The Caffè Nero Group, a British coffee chain. Carlyle also provided financing, alongside Wells Fargo (NYSE:WFC), for Digital Intelligence Systems LLC, a Virgina-based outsourcing firm, to acquire a smaller rival, Signature Consultants LLC.
Carlyle has been seeking to bolster its credit platform, which had $73 billion in assets under management as of December. Last week, Carlyle reached a deal with Fortitude Re to raise $2.1 billion in equity financing for the reinsurer and manage $50 billion of its assets. Carlyle also agreed to acquire credit manager CBAM in March, which will add an additional $15 billion to its assets under management.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.