Carlyle Closes $300 Million Loan Opportunity Fund

Washington, DC – Global private equity firm The Carlyle Group today announced that it has closed its fifth high yield fund, Carlyle Loan Opportunity Fund (CLOF), at $300 million. The fund will invest a minimum of 95 percent of its assets in liquid, non-investment grade bank loans.

The fund has an initial core portfolio of 75 percent senior secured par loans, which will be supplemented with opportunistic acquisitions of performing loans trading at a 10-25 percent discount to par.

Mike Zupon, Managing Director and head of the high yield group, said, “A focus on bank loans enables us to take advantage of greater price stability, lower historical default rates, and higher recovery rates compared to other below investment grade asset classes. And discounted loans represent an opportunity to purchase loans at lower prices and realize attractive returns on investment through current income and higher ultimate recoveries.”

Carlyle’s high yield team now manages $2.6 billion of leveraged loans, high yield bonds, and special situation investments in five CDOs:

•Carlyle High Yield Partners, L.P. - $900 million market value CDO (May 1999)
•Carlyle High Yield Partners II, Ltd. - $550 million cash-flow CDO (Dec. 1999)
•Carlyle High Yield Partners III, Ltd. - $450 million cash-flow CDO (Dec. 2000)
•Carlyle High Yield Partners IV, Ltd. - $400 million cash-flow CDO (April 2002)
•Carlyle Loan Opportunity Fund - $300 million cash-flow CDO (Sept. 2003)

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