Funds

Carlyle Asia IV closes on $3.9bn

The fund, which was originally targeting $3.5bn, will invest in Asia Pacific ex-Japan

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Global private equity firm The Carlyle Group has closed its latest Asia-dedicated fund, garnering $3.9 billion in commitments and exceeding its $3.5 billion target.

The vehicle, Carlyle’s fourth Asia fund, is more than 50 percent larger than its predecessor and takes the firm’s assets under management in the region to $13.6 billion across its buyout, growth, RMB and real estate funds, according to the firm.

The fund will invest in buyout and significant minority investments in Asia Pacific, excluding Japan, for which the firm has a separate fund and investment team. It intends to focus on the consumer and retail, financial services, TMT and healthcare sectors.

“We believe that the regional economy will continue to grow much faster than the rest of the world. Rising middle class and their demand for better products and services are key drivers of these investment opportunities,” X.D. Yang, managing director and co-head of Asia at Carlyle, said in a statement.

Carlyle Asia Partners IV launched in 2012 and has taken close to two years to raise. The fund made its first investment in May, paying $1.9 billion for ADT Korea, a South Korean security services company.

In August, the fund also invested in Ganji.com, a top operator of online and mobile-based classifieds in China. Carlyle has invested $5.2 billion through about 80 transactions in China (as of 30 June 2014) making it one of the largest foreign investors in China, according to the firm.

David Rubenstein, co-chief executive Carlyle, added in the statement, “Our diverse Asian platform has created significant value for our investors. We are excited about the great opportunities we see throughout Asia and are committed to investing resources, expertise and capital in this critical region of the global economy.”

The fund joins the slew of global private equity players that have closed private equity vehicles over the past 14 months.

Kohlberg Kravis Roberts raised the largest, with its $6 billion close in July last year. Since, CVC Capital Partners and TPG Capital both closed their Asia-wide funds on $3.5 billion and $3.3 billion respectively.