Carlyle nears first close on over $4bn for Asia buyout fund

The firm, which launched Carlyle Asia Partners V in the second quarter of 2017, is targeting around 30% more than the $3.9bn it raised for Fund IV.

Carlyle Group is close to a more than $4 billion first close for its latest Asia buyout fund, according to a source with knowledge of the matter.

The firm is looking to secure the close in the next few months, making Carlyle Asia Partners V the firm’s largest pan-Asia fund, and adding to the $27.4 billion raised for private equity in the region from January through September 2017, according to PEI data.

Pan-Asia firms also on the fundraising trail include TPG, which is targeting $4 billion for TPG Asia VII; Affinity Equity Partners, which is seeking $5 billion for Affinity Asia Pacific Fund V; as well as Blackstone and Morgan Stanley Partners, both eyeing $2 billion for their latest vehicles.

Carlyle began marketing for Fund V in the second quarter of the year with a $5 billion target.

PEI understands that the firm will follow the same strategy for Fund V as its predecessor, the 2013-vintage $3.9 billion Asia Partners IV, which focuses on buyout transactions in Asia in targeting industries including healthcare, consumer and retail and technology and business services. Fund IV has made 12 investments and one exit so far, according to Carlyle’s website. That fund received commitments from New York State Teachers’ Retirement System, Rhode Island State Treasury, Texas County and District Retirement System and Maine Public Employees Retirement System, PEI data show.

Along with its buyout vehicle, the firm is also targeting $1 billion for its Asia Growth Fund V, which was launched last year and has so far received around $200 million in commitments, according to PEI data.

Its predecessor, the 2008-vintage, $1 billion Carlyle Asia Growth Partners IV, is showing a 1.2x money multiple and a 6.4 percent internal rate of return, according to documents from CalPERS. The firm’s Asia Growth funds focus on small buyout and late-stage growth capital investments primarily in China, India, and South Korea.

Carlyle declined to comment on fundraising.