Carlyle raises more than $18bn for US, Asia buyout funds

The firm is seeking $15bn for Carlyle Partners VII and $5bn for Carlyle Asia Partners V.

Carlyle has held first closes totalling $18.8 billion on its latest US and Asia flagship buyout funds, according to its fourth-quarter earnings results.

The Washington, DC-headquartered firm is targeting $15 billion for Carlyle Partners VII, which includes commitments from Houston Municipal Employees’ Pension System, Minnesota State Board of Investment and Washington State Investment Board, according to PEI data.

It is also seeking $5 billion for Carlyle Asia Partners V and has attracted commitments from LPs including the California Public Employees’ Retirement System, New Hampshire Retirement System and Kentucky Teachers’ Retirement System, according to PEI data.

The firm is also in market with Carlyle Asia Growth Partners V which has a $1 billion target.

A spokeswoman for firm declined to comment on how much has been raised for specific vehicles.

“Our latest vintage US buyout, Asia buyout and US real estate funds are already larger than their predecessor funds, with additional capacity remaining,” co-chief executive Glenn Youngkin said in an earnings call on Wednesday announcing the results. The firm raised $19.1 billion for corporate private equity during the quarter, driving its total assets under management in the segment to a record $72.6 billion as of 31 December.

Carlyle raised $24.7 billion across all segments in the fourth quarter, compared with $2.7 billion during the same quarter in 2016. The firm is seeking to diversify its earnings stream across its segments and expects a higher percentage of future earnings to arise from non-corporate private equity businesses, Youngkin said.

It expects to raise approximately $25 billion during 2018, he noted.

“Increasingly our investors need attractive returns and the ability for us to invest responsibly larger and larger amounts of capital as their own inflows and obligations keep growing,” co-chief Kewsong Lee added. “As we look forward from here we expect many of our flagship funds to have 30 percent to 40 percent more committed capital than their predecessors.”

Carlyle’s total assets under management reached $195 billion as of 31 December, up 24 percent year-on-year. A combination of $43 billion in fundraising and fund appreciation drove growth, which was partially offset by $26 billion in realised proceeds to fund investors.