Carlyle raises $10bn for US, Europe

Carlyle Group, the Washington DC-based global buyout firm, has raised $7.85bn and $2.2bn respectively for its latest US and European buyout funds.

Carlyle Group has raised $7.85 billion (€6.1 billion) for its Carlyle Partners IV fund, which will target buyout investments in the US. The fund, which announced a first closing on $5 billion in December 2004, had an initial target of $5 billion, which it revised up to $6.5 billion after receiving keen demand from investors. It is understood that the fund – which is the successor to the firm’s $3.9 billion Fund III – turned away a further $1.5 billion of potential commitments.

Meanwhile, Carlyle has raised $2.2 billion (€1.7 billion) for its Carlyle Europe Partners II fund, which is the successor to the €1 billion Carlyle Europe Partners fund and which will target buyout investments in Europe. The fund had an initial target of €2 billion.

It is understood that an official final closing of both funds will take place later this week, but that no further commitments are expected at this stage. A source said that “the majority” of commitments to the European fund had come from European sources, while the US fund had strong support from US pensions. Investors in the US fund at the first round stage included the California Public Employees Retirement System (CalPERS), UBS and the Teachers Retirement System of the State of Illinois.

Carlyle Partners IV will be invested by 52 investment professionals based in Washington DC, New York and Charlotte, headed by managing directors Allan Holt and Daniel Akerson. Europe Partners II will be invested by a 35-strong team headed by managing director Jean-Pierre Millet and based out of Paris, London, Munich, Milan and Barcelona.

Millet said “a significant amount” of the new Europe fund had already been put to work in five investments and that the fund is “performing well”.

William Conway, Carlyle co-founder and managing director, will chair the investment committees for the two new funds, which will be served by David Rubenstein, co-founder and managing director; Daniel D’Aniello, co-founder and managing director; and Louis Gerstner, chairman.

In a statement, Carlyle Group said it now manages more than $25 billion of equity capital in 28 funds. In Asia, the firm manages the $750 million Carlyle Asia Partners fund and the $423 million Carlyle Japan Partners fund.