The Carlyle Group has closed its debut credit opportunities fund at $2.4 billion. Carlyle Credit Opportunities Fund invests in directly originated private capital solutions primarily for upper middle-market borrowers.
WASHINGTON, DC – Global investment firm The Carlyle Group (NASDAQ: CG) today announced the final close of its inaugural Carlyle Credit Opportunities Fund (“CCOF”), a $2.4 billion fund that invests in directly originated private capital solutions primarily for upper middle market borrowers, including non-private equity sponsored, family or entrepreneur-owned companies seeking an alternative to traditional capital markets or private equity. Including available leverage, investable capital by CCOF increases to $3.1 billion.
The fund has already committed approximately $850 million to ten businesses in North America and Europe across various industries where Carlyle’s broader platform has domain expertise. These include investments in a founder-owned homebuilder, a publicly listed media company and a subsidiary of a large corporate focused on renewable energy.
Alexander Popov, Managing Director and Head of the Carlyle Credit Opportunities team, said, “Carlyle’s Credit Opportunities Fund is meeting a growing need for bespoke capital solutions among borrowers seeking an alternative to traditional debt markets or private equity. Leveraging Carlyle’s global platform, we seek to source and drive value in complex or overlooked investment opportunities while structuring strong downside protection and current yield. We are grateful for the support of our investors and will work hard to achieve our investment objectives.”
Mark Jenkins, Managing Director and Head of the Global Credit platform, said, “We’ve made tremendous progress over the past three years expanding the Global Credit platform and this marks another important step forward in that effort. As always, our focus is on securing the best investment opportunities for our investors, which we create by providing new and innovative capital solutions for our borrowers.”
A 15-person team based in New York and London advises the Carlyle Credit Opportunities Fund, and invests across the capital structure through a combination of secured loans, senior subordinated debt, mezzanine debt, convertible notes and other debt-like instruments, as well as preferred and common equity. The fund will benefit from proprietary investment opportunities originating from within Carlyle and the firms’ global resources and operating expertise.
Taj Sidhu, Managing Director and Head of Carlyle’s European Credit Opportunities advisory team, based in London, said, “The breadth and depth of Carlyle’s substantial platform is invaluable in providing access to deal flow and resources. Our team benefits from the firm’s approximately 640 investment professionals globally, which include approximately 150 investment professionals across Europe including in Barcelona, Milan, Munich and Paris where Carlyle has had local teams for 20 years.”
Carlyle’s Global Credit platform, with $46 billion in assets as of March 31, 2019, includes funds in liquid credit, illiquid credit and real assets credit. These businesses have more than 100 investment professionals in New York, Washington, DC, Los Angeles, Chicago, Hong Kong and London.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $222 billion of assets under management as of March 31, 2019, Carlyle’s purpose is to invest wisely and create value on behalf of our investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,725 people in 33 offices across six continents.