Carlyle Group said Nov. 1 that its second energy credit investments fund raised $2.8 billion. Carlyle Energy Mezzanine Opportunities Fund II (CEMOF II) will invest in projects and companies in the power generation and energy sectors requiring capital of $50 million to $500 million per transaction. Simpson Thacher & Bartlett LLP advised the fund.
The Carlyle Group Raises $2.8 Billion for Energy CreditInvestments, Double Previous Fund
New Fund Provides Investment Capital to Energy Projects and Businesses Unable to Tap Traditional Sources
New York, NY and Houston, TX – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has raised $2.8 billion for energy credit investments.Carlyle Energy Mezzanine Opportunities Fund II (CEMOF II) primarily targets investments in projects and companies in the power generation and energy sectors requiring capital of $50 million to $500 million per transaction. The fund is more than twice the size of the previous Carlyle Energy Mezzanine fund raised in 2012.
David Albert, Managing Director and Co-head of the Energy Mezzanine team, said, “We are grateful for our investors’ continued support. The second fund enables us to undertake larger transactions and fill a market need by providing investment capital to energy companies challenged to obtain capital from traditional sources.”
“We see opportunities to provide flexible capital as the industry recovers from a period of low commodity prices,” said Rahul Culas, Managing Director and Co-head of the Energy Mezzanine team. “To date we have made 15 investments across multiple energy subsectors, supported by our team of more than 20 investment professionals in New York and Houston.”
Started in 2010, the Carlyle Energy Mezzanine Opportunities Fund now manages more than $4 billion. Current investments include Hilcorp Energy Development, L.P., a partnership withHilcorp Energy Co., and Shenandoah Petroleum Corp.
CEMOF II was advised by Simpson Thacher & Bartlett LLP.
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About Carlyle’s Credit Platform
Carlyle’s array of credit products resides within the Global Market Strategies segment, which has $34 billion in assets under management. The GMS platform has more than 200 investment professionals in New York, Washington, DC, Los Angeles, Chicago, Hong Kong and London.
The credit platform consists of:
• Loans and Structured Credit: Carlyle’s 45 loan and structured credit funds invest primarily in performing senior secured bank loans through structured vehicles and other investment products in the U.S., Europe and Asia.
• Private Credit: Provides financing solutions, including senior secured and subordinated debt, to middle market companies.
• Energy Credit: Makes energy credit investments in North American energy power projects and companies.
• Distressed Credit: Invests in the debt and equity of operationally sound but financially distressed companies.
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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $169 billion of assets under management across 125 funds and 177 fund of funds vehicles as of September 30, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment 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, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 35 offices across six continents.