Carlyle closes international energy fund on $2.5bn

The US buyout firm, which started marketing the fund in mid-2013 with a target of $1.5bn, has enlisted support from 160 investors.

The Carlyle Group today announced the third and final close of its Carlyle International Energy Partners (CIEP), its first international energy fund, on $2.5 billion.

The firm, which started marketing the vehicle in mid-2013, claims it is the largest first-time fund it has ever raised. The vehicle had a target of $1.5 billion.

CIEP targets investments in oil and gas outside North America, with a focus in Europe, Africa, Latin America and Asia. It covers areas such as oil and gas exploration and production, midstream and downstream, refining and marketing, and oil field services.

The vehicle, led by Marcel van Poecke, received commitments from a total of 160 limited partners. Known backers include the San Francisco Employees' Retirement System and the Alaska Permanent Fund.

“This is one of the best energy investing environments I’ve seen in more than 30 years in the industry. Carlyle’s broad energy platform plus a significant amount of dry powder enables us to leverage current opportunities and market volatility across the global energy markets,” van Poecke said in a statement.

The final closing brings the assets managed by Carlyle’s energy platform to $10 billion. Aside from international oil and gas deals, sectors targeted by the unit include US energy (through NGP Energy Capital Management), project finance (through its Energy Mezzanine Opportunities vehicles) and power (through its power funds).

The CIEP team consists of 14 investment staff. In addition to van Poecke, it includes managing directors Bob Maguire and Joost Dröge, as well as Paddy Spink, senior advisor to the fund.