The Carlyle Group has so far raised $3.2 billion for its longer-term fund, Carlyle Global Partners, and has the capacity to raise additional capital.
Although the firm is “pretty comfortable” at $3.2 billion, it will “probably raise an additional amount of money” for the vehicle that will hold investments for longer than its typical buyout funds, Carlyle co-chief executive David Rubenstein said on a first-quarter earnings call.
It has already raised $2 billion from a single investor.
The fund has a good pipeline of deals and will probably have completed four transactions by the end of the quarter. “We have closed on two transactions and have two more in the works. We feel that we have a pretty good pipeline. We’ve added a number of investment professionals to it,” Rubenstein said.
The fund has invested in a large portfolio of corporate jets and parts that are leased and owned, and formed a company that will make further acquisitions. It has also invested in a company called Content Partners that owns residuals on TV programmes and films. “Both these deals have the advantage of being very long-term assets,” Carlyle co-CEO William E Conway said.
Across its corporate private equity business, dry powder stood at $21 billion at the end of Q1, almost half of the $48 billion in total for the group’s carry funds.
Its private equity funds invested $3.3 billion over the quarter, comprising the bulk of the $3.9 billion invested across its carry funds, and far above its global market strategies and real assets funds.
Its private equity funds also realised $2.3 billion of proceeds, including £700 million ($1 billion; €900 million) from the divestment of its stake in the UK roadside assistance company the Royal Automobile Club, which it sold to CVC Capital Partners. CVC acquired the business through its CVC Strategic Opportunities fund that also invests over the longer term.
The Carlyle Group’s buyout funds generated $1.1 billion in net performance fees in the first quarter, outstripping its other growth capital, real assets and global market strategies carry funds, according to its earnings report. In total, the private equity giant generated $1.3 billion of performance fees.
Its total private equity assets under management stood at $61.1 billion at the end of Q1 down 5 percent over the last 12 months.