Carlyle Group Raises $2.55 Billion for Asia Buyouts

The Carlyle Group has closed its third Asia buyout fund with $2.55 billion in capital commitments. The firm’s previous Asia buyouts fund closed in 2006 with $1.8 billion.


Global private equity firm The Carlyle Group announced today that it has closed its Carlyle Asia Partners III (CAP III) fund at US$2.55 billion, which is more than 40% larger than its predecessor fund, Carlyle Asia Partners II. Carlyle Asia Partners III is the third ex-Japan Asia Pacific private equity fund advised by the Carlyle Asia Partners team, bringing the aggregate committed capital to more than US$5 billion. The new fund has attracted commitments from large institutional investors from around the world, including the U.S., Europe, Middle East and Asia. Carlyle established its Asian private equity operation in 1999, and the Carlyle Asia Partners group alone has made 21 investments in the region.

“As one of the few multi-billion dollar PE fund closings globally since the onset of the financial crisis, we are pleased with the level of support from investors, especially in this challenging fundraising environment. It is an affirmation of our investment strategy and track record as well as the attractiveness of opportunities in the region,” said X.D. Yang, Managing Director and Co-head of Carlyle Asia Partners.

“We believe that 2010 is shaping up to be a very good year to make investments in Asia as the region bounces back strongly from the global economic crises. We see strong investment opportunities across the entire region and look forward to investing with this significant pool of capital resources at this attractive time,” added Yang.

Carlyle invests in local companies through a team of local professionals with deep investment and operating expertise. “Our differentiated investment approach emphasizes active participation in the management of our portfolio companies. Over the last three years, Carlyle Asia Partners has recruited three senior operating partners to work as an integral part of our investment team. We have placed more than 40 senior executives into our portfolio companies over the years to strengthen their businesses. We will continue to deepen this value creation approach,” Yang added.

Carlyle’s commitment to a highly localized strategy has led to the development of its RMB private equity funds. In January, Carlyle Asia Partners signed a memorandum of understanding with the Beijing Municipal Bureau of Financial Work on the formation of an RMB-denominated fund in Beijing. The Carlyle Asia Partners RMB Fund will invest alongside CAP III as well as pursue independent investments in large growth companies. This combination will better enable Carlyle to approach opportunities in China, the largest and fastest growing economy in Asia.

Carlyle Asia Partners III is the third ex-Japan Asia Pacific private equity fund managed by the Carlyle Asia Partners, which manages an aggregate committed capital of more than US$5 billion in three funds. The group invests through a dedicated team of 40 local professionals across seven offices – Beijing, Hong Kong, Mumbai, Seoul, Shanghai, Singapore and Sydney.

The Carlyle Group was named Asia’s Best Private Equity Firm by The Asset magazine in its Triple-A Asset Asian Awards 2009. Earlier this month, China Venture named Carlyle as the Best International Private Equity Firm in China. Carlyle manages a total of 11 funds with more than US$10 billion of assets under management in Asia Pacific (including Japan).

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About The Carlyle Group

The Carlyle Group is a global private equity firm with $88.6 billion of assets under management committed to 67 funds as of December 31, 2009. Carlyle invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested $59.6 billion of equity in 952 transactions for a total purchase price of approximately $233.0 billion. The Carlyle Group employs more than 860 people in 19 countries. In the aggregate, Carlyle portfolio companies have more than $84 billion in revenue and employ more than 398,000 people around the world.