Size Confusion Over Carlyle’s Financial Services Fund

UPDATE: Confusion Solved! See below. The Carlyle Group is raising a fund dedicated to financial services, as previously noted by peHUB. The operation, called Carlyle Global Financial Services Partners, started around June of this year.

Yesterday CalPERS reported it had committed $150 million to the effort. According to the CalPERS document, the fund has closed on more than $600 million and “is targeting a final size in excess of $1 billion.”

That doesn’t exactly match up with an SEC document filed by the fund October 6. According to that filing, the fund is targeting upwards of $5 billion, with $477.25 million already in the bank.

Carlyle spokesman Chris Ullman declined to comment on the discrepancy. I can only speculate that the firm has either lowered its target significantly, or is targeting $1 billion, but filed with a higher amount to have enough wiggle room to go over in the case of extremely high demand. There is some evidence the firm has lowered its target since filing initially, since other trade publications previously reported the fund to have a $3 billion-plus target.

A source familiar with the situation told peHUB the $5 billion filing is a hard cap, but practically speaking the firm fund is hoping to raise between $1 billion and $3 billion for the first-time fund. Conflict resolved.

Here is CalPERS’ description of the fund:

The Firm is raising its first financial services private equity fund, Carlyle Global Financial Services Partners, to target distressed sellers and divisional carve-outs in the financial services sector. The Fund will target banking, insurance, asset management, specialty finance (consumer and commercial), capital markets and financial technology companies.

It’s being led by Oliver Sarkozy, Randal Quarles, Glenn Youngkin, and James Burr. In September the team added six investment professionals, details of which are available here.

If you’ve seen the PPM, feel free to email me, or Dan, with any clarifying information on the fund’s target.

View CalPERS Filing here.

Read more: Carlyle Raising Financial Services Fund, Carlyle Bullish On China Despite Headwinds And Shuttered Leveraged Loan Ops