Since its formation, Carlyle has consistently delivered exceptional returns on its U.S. buyout investments. We target key industries in which we have significant expertise and take a conservative approach to investing, seeking purchase prices that are lower than industry averages and conducting extensive due diligence on every transaction.

Established in 1990, the firm’s first buyout fund, Carlyle Partners I, L.P. (CP I), closed with $100 million in commitments from leading domestic and international investors.

Carlyle's second U.S. buyout fund, Carlyle Partners II, L.P. (CP II), was launched in 1996 and has $1.3 billion of equity commitments. Carlyle's third U.S. buyout fund, Carlyle Partners III, L.P. (CP III) was launched in 2000 and has $3.9 billion of equity commitments. The fourth U.S. buyout fund, Carlyle Partners IV, L.P. (CP IV) was launched in 2005 and has $7.8 billion of equity commitments.

The U.S. Buyout team’s approach to investing comprises the following five major principles:

• Conservative and Disciplined: A conservative and disciplined investment philosophy produces the highest consistent returns. We seek to make sound investments in good companies with strong management teams and structure our transactions with relatively conservative amounts of debt.

• Industry Specialization: Since its inception, Carlyle has adopted an industry-focused approach to investing. In-depth knowledge of specific industries improves our ability to source and create deals, conduct effective due diligence, develop strong relationships with management teams and identify potential buyers as part of a coherent exit strategy.

• Deal Creation / Auction Avoidance: Non-competitive situations or limited auction transactions account for many of the Carlyle investments to date. We generally avoid the full auction process, although we will participate in such auctions when we believe we have an edge over the competition.

• Value Added Partner: Investment professionals devote a significant amount of their time to working closely with portfolio companies. Each team uses its industry expertise and network to facilitate implementation of effective operational and marketing strategies by the portfolio companies.

• The Carlyle Edge: We pursue investments only if we believe that we have an edge over our competition in the form of deep industry knowledge, global expertise, positive relationships with management teams, the ability to move quickly to commit to transactions, and/or the opportunity to participate in strategic joint ventures with corporate partners.