The Carlyle Group has completed its first investments from its energy mezzanine business, deploying $40.5 million in mezzanine capital into a pair of energy exploration and production companies.
Carlyle deployed $20 million in mezzanine capital to Core Minerals, which focuses on oil and gas opportunities in the Illinois Basin, and an additional $20.5 million to Black Raven Energy, a Denver, Colorado-based exploration and production company. The companies will use the mezzanine capital for acquisitions and development of reserves.
The firm’s energy mezzanine business targets investments in the energy and power sectors, including power generation, renewable energy, oil and gas production and midstream infrastructure.
Carlyle declined to comment outside the press release announcing the investments.
The Washington, DC-based firm launched the Carlyle Energy Mezzanine Opportunities Fund in January, as many small and mid-sized companies in the sector sought restructuring to lower debt loads and make themselves more attractive takeover targets amid growing global M&A activity.
The fund’s portfolio is overseen by Carlyle’s New York-based energy opportunities mezzanine team, led by David Albert and Rahul Culas. According to US Security and Exchange Commission Filings dated 10 January, the fund has $73.5 million under management and its Cayman Islands-based counterpart, Carlyle Energy Mezzanine Opportunities Fund-A, has $85 million under management.