Return to search

Update: Carlyle closes Europe Fund IV at €3.75bn hard cap

The firm has $26bn in dry powder to invest in PE according to its Q2 earnings statement.

The Carlyle Group has closed its Carlyle Europe Partners IV fund at its €3.75 billion hard cap, the investment firm said in a statement.

The fund, which began marketing about two and half years ago at the same time as US and Asia fundraisings and ramped up efforts in the past 18 months, was targeting about €3 billion, a spokesperson said.

More than 140 investors from 35 countries have committed to the fund, the statement said.

Of those commitments, more than half came from investors in Carlyle’s previous CEP fund, a 2008-vintage, €5.3 billion vehicle, the spokesperson said. Investors were split a third in Europe, a third in the Americas and the remainder globally.

“Our biggest problem was getting enough investors into the fund because there was so much interest and money coming into the fund,” Carlyle co-CEO David Rubenstein said on a second quarter earnings call. Most of the firm's funds hit their hard caps, he said in the accompanying earnings statement.

Investors in CEP III included the BBVA Wholesale Banking & Asset Management, the California Public Employees’ Retirement System, the City of Philadelphia Board of Pensions & Investment, the Florida State Board of Administration, the National Pension Service of Korea, the Teacher Retirement System of Texas, and Swiss Reinsurance Company, according to Private Equity International’s Research and Analytics division.

Carlyle’s fourth fund will follow the same strategy as CEP III and invest in European upper mid-market opportunities across sectors. It has already completed four investments, the statement said.

CEP IV invested in French campsite operator Homair Vacance and Custom Sensors & Technology in 2014, and Italian industrial company Sematic and Spanish food supplier Palacios, both in March 2015.

The investment firm closed its third European technology fund at €656 million in May after a year of marketing, as reported by Private Equity International. It has no other ongoing fundraisings for Europe-focused vehicles, the spokesperson said.

In June, the firm committed $500 million from its $2.5 billion Carlyle International Energy Partners fund to India’s Magna Energy. That fund closed in March with commitments from 160 investors, as reported by PEI.

Carlyle raised $4.7 billion in new capital in the second quarter ending 30 June and invested $1.4 billion of equity, the firm said in a statement. Over the past 12 months it raised $20.4 billion and invested $8.4 billion of equity.

The group has amassed $26 billion in private equity dry powder, the statement said. In Q2, Carlyle invested $908 million through 17 corporate private equity transactions made from 13 funds, and over the last 12 months deployed $1.7 billion from 17 funds in 32 investments.

The firm reported $5.8 billion of realisations in Q2 2015 and $20.5 billion over the past year. It realised $4.5 billion from 49 investments from its PE portfolio, and $7.8 billion from 61 investments in the last 12 months.

For the quarter, it generated economic net income of $180 million supported by a 3 percent carry fund portfolio appreciation, the statement said.

Its Corporate Private Equity business appreciated 5 percent. Carlyle Partners V, Carlyle Europe Partners III, Carlyle Realty Partners VI and Carlyle Global Financial Services Partners led the way in fund appreciation, the statement said.

Its buyout funds appreciated four percent and generated accrued performance fees of $1.2 billion, compared to its growth capital funds that appreciated 11 percent, generating $107 million in fees.

Carlyle's balance sheet assets totalled $34 billion on 30 June, while its total assets under management stood at $192.8 billion. Its assets under management within corporate private equity totalled $63.6 billion.