Carlyle has closed its second credit opportunities fund at a hard cap of $4.6 billion, beating its $3.5 billion target. The fund is targeted at upper middle market borrowers, including family and entrepreneur-owned businesses, sponsor-backed companies and asset-backed borrowers.
NEW YORK and LONDON – Global investment firm Carlyle (NASDAQ: CG) announced today the final close of its second Carlyle Credit Opportunities Fund (“CCOF II”). The fund raised $4.6 billion, hitting its hard cap, exceeding its $3.5 billion target, and attracting almost double the amount raised for its predecessor fund. Including available leverage, investable capital is approximately $6 billion.
CCOF II provides capital solutions to companies seeking an alternative to traditional capital markets or private equity. Its directly originated solutions are targeted at upper middle market borrowers, including family and entrepreneur-owned businesses, sponsor-backed companies and asset-backed borrowers.
Mark Jenkins, Head of Global Credit at Carlyle, said, “This fundraise furthers our ongoing strategy to scale the Global Credit platform and, along with the strong performance of our initial fund, is a testament to the market opportunity and the talent of our team. We are grateful for the confidence and support of our investors, many of whom are repeat investors, and remain committed to delivering attractive returns.”
CCOF II has already committed approximately $3.8 billion—or 67% of investable capital—to 22 businesses in North America and Europe across industries. The team focuses on leveraging Carlyle’s areas of expertise and market connectivity to develop thematic views and proactively pursue investments in targeted industry verticals including media and entertainment; residential real estate and services; software and technology; financial and business services; and aerospace.
Alex Popov, Head of Illiquid Credit Strategies at Carlyle, said, “Carlyle’s Credit Opportunities strategy is meeting a growing need for flexible, solutions-oriented capital from companies seeking to benefit from opportunities in a rapidly changing economic environment. Leveraging Carlyle’s domain expertise and the strengths of our Global Credit platform, we source opportunities and drive value in often complex or overlooked situations. We remain focused on continuing to deliver strong performance and appreciate the ongoing support of our investors.”
CCOF II’s predecessor fund, CCOF I, closed in 2019 with $2.4 billion in total commitments. CCOF I is fully deployed, having invested $3.4 billion across 37 investments. As of December 31, 2021, the fund is generating an approximate 15% net IRR for investors.
This fundraise advances Carlyle’s scale up of its Global Credit platform, which has been Carlyle’s fastest-growing segment over the past four years and is a key component of Carlyle’s overall Strategic Plan. Global Credit ended last year with $73 billion in AUM, more than two times larger than it was less than four years ago. Since the start of the year, Carlyle has significantly scaled its credit platform through a new advisory agreement with Fortitude Re; acquiring a portfolio of assets from CBAM Partners; and acquiring a net lease real estate portfolio from iStar. On a Pro-Forma basis, those three transactions increase Global Credit Fee-earning AUM by $65 billion.
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $301 billion of assets under management as of December 31, 2021, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs nearly 1,850 people in 26 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.