The Carlyle Group has raised $1.38 billion for a new fund focused on energy credit investments, the firm announced. The fund, Carlyle Energy Mezzanine Opportunities Fund, will target projects and companies in the “power generation” and energy sectors, and will put $20 million to $150 million into each transaction, the firm said.
Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has raised $1.38 billion for energy credit investments. Carlyle Energy Mezzanine Opportunities Fund (“CEMOF”) primarily targets investments in projects and companies in the power generation and energy sectors requiring capital of $20 million to $150 million per transaction. The fundraising effort exceeded Carlyle’s initial goal of $750 million.
David Albert, Managing Director and Co-head of the energy credit investment team, said, “We are delighted with the faith investors have shown in us and in our strategy. CEMOF provides growth capital which is less dilutive and more flexible than that of traditional private equity. We enable owners to maintain control of their companies’ governance and to retain the bulk of the equity upside.”
“We see strong opportunities in the market and have a great team based in New York and Houston to pursue them, as well as the Carlyle global network to assist in sourcing and supporting transactions,” said Rahul Culas, Managing Director and Co-head of the energy credit investment team. “The fund is off to a strong start having already made six investments in a mix of power generation projects and upstream and downstream energy companies.”
CEMOF reflects Carlyle’s ongoing strategy of expanding its asset management business beyond the firm’s historical focus on control-oriented private equity. The fund resides within Carlyle’s Global Market Strategies segment, which comprises an array of structured credit, middle-market credit and distressed credit products, as well as hedge fund strategies (long/short credit; emerging markets equities; macroeconomic strategy; and commodities) – 55 funds with $30 billion in assets managed by 117 investment professionals in New York, Washington, DC, Los Angeles, Houston, Hong Kong and London as of September 30, 2012.
CEMOF was advised by Simpson Thacher & Bartlett LLP.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $157 billion of assets under management across 101 funds and 64 fund of fund vehicles as of September 30, 2012. Carlyle’s purpose is to invest wisely and create value on behalf of our investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs 1,300 people in 32 offices across six continents.