Nov 25 Carlyle Group LP said on Monday it
has finished raising money for its latest U.S. private equity
fund, surpassing its initial $10 billion fundraising target by
The Washington, D.C.-based company, founded in 1987 by David
Rubenstein, William Conway and Daniel D'Aniello, said the $13
billion Carlyle Partners VI fund attracted 269 investors from 43
countries. Carlyle and its staff invested $1 billion in the fund
alongside $12 billion from outside investors.
Carlyle, which has diversified into other assets classes
including corporate credit, real estate and hedge funds, had
$185 billion in assets under management at the end of September,
with $62.2 billion in private equity.
Nevertheless, private equity accounts for more than one-half
of its profits. Out of the $627 million in Carlyle's 12-month
distributable earnings to the end of September, $325 million
came from private equity.
Its previous U.S. buyout fund, Carlyle Partners V, was
valued at 1.6 times its investors' money at the end of
September. It raised $13.7 billion from investors at the onset
of the latest financial crisis in 2008.
Carlyle's latest U.S. buyout fund comes amid a wider
recovery in private equity fundraising, as investors look for
yield amid record low interest rates. Buyout funds raised a
total of $124.5 billion globally in the first nine months of
2013, up from $82.5 billion in the same period in 2012,
according to Thomson Reuters data.
Some of the major private equity funds raised this year
include a $11.2 billion pool by Warburg Pincus LLC for
deals around the world, and KKR & Co LP's latest North
American private equity fund, which is wrapping up fundraising
at more than $8.3 billion.
Private equity funds dedicated to the United States,
however, may find it more challenging to put money to work in
the short term as red-hot equity and debt markets have buoyed
the price expectations of sellers and tempered leveraged buyout
Private equity-backed deals, excluding the mega buyouts of
Dell Inc and Heinz that involved minority participation from
private equity, totaled $131.8 billion in the United States year
to date, less than the $137.2 billion over the same period last
year but above the $105.5 billion over the corresponding period
in 2011, according to Thomson Reuters data.
In response, Carlyle has been trying to source more deals on
a proprietary basis. In September it agreed to invest $500
million for a minority stake in Beats Electronics LLC, a maker
of headphones founded by rapper Dr. Dre and music producer Jimmy
It has also stepped up efforts to attract top talent,
poaching veteran dealmaker Kewsong Lee from Warburg Pincus and
naming him deputy chief investment officer earlier this month.
That may position him to succeed one of Carlyle's founders in