Carlyle’s new US private equity fund tops $13bn

CARLYLE Group said yesterday it has finished raising money for its latest US private equity fund, surpassing its initial $10bn fundraising target by $3bn.

The Washington DC-based company, founded in 1987 by David Rubenstein, William Conway and Daniel D’Aniello, said the $13bn Carlyle Partners VI fund attracted 269 investors from 43 countries. Carlyle and its staff invested $1bn in the fund alongside $12bn from outside investors.

Carlyle, which has diversified into other assets classes including corporate credit, real estate and hedge funds, had $185bn in assets under management at the end of September, with $62.2bn in private equity.

Nevertheless, private equity accounts for more than one-half of its profits. Out of the $627m in Carlyle’s 12-month distributable earnings to the end of September, $325m came from private equity.

Its previous US buyout fund, Carlyle Partners V, was valued at 1.6 times its investors’ money at the end of September. It raised $13.7bn from investors at the onset of the latest financial crisis in 2008.

Carlyle’s latest US 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 $124.5bn globally in the first nine months of 2013, up from $82.5bn in the same period in 2012.

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