Coutts & Co has revealed details of an investment partnership with US private equity house Carlyle Group, which will see the private bank invest $114m in seven existing and new Carlyle funds over the next twelve years.
The fund, Coutts Private Equity Limited Partnership, is expected to have a twelve-year lifespan with investors committed for the full term. The underlying investments will typically be held for around five years, with capital distributions taking place as investments are realised throughout the life of the fund.
Coutts has raised the money for the fund from its existing client base, with private investors committing a minimum of $250,000 per person to the fund. The Coutts fund will effectively work as a fund of funds with specific emphasis on Carlyle funds. The seven Carlyle funds comprise buyout and venture funds from the US, Europe, Asia and Japan.
Robert Dawkins, head of alternative investments at Coutts, pointed to Carlyle’s broad range of funds, combined with the firm’s strong performance record as the reason for nominating Carlyle. “Carlyle's impressive track record convinced us it would make the best partner for investments in the private equity market.” Dawkins added that the launch of this fund reinforced Coutts’ position in the alternative investment market.
Late last year, Carlyle announced that Andrew Fisher, the CEO of UK bank Coutts, would join Carlyle Group in 2002.
Coutts & Co is the UK private banking arm of the Coutts Group, an international private banking group owned by The Royal Bank of Scotland Group. It manages the wealth of 70,000 high net worth clients from a network of 23 offices in the UK and 15 internationally. US private equity firm Carlyle Group has in excess of $13.5bn under management.