The Carlyle Group Raises $2.4 Billion for Middle Market Buyouts in North America
Experienced Team, Industry Expertise, Carlyle Global Resources Position Fund for Large Opportunity Set
Washington, DC and New York, NY – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has raised $2.4 billion for U.S. middle market buyout investments. Carlyle Equity Opportunity Fund II (CEOF II) targets control investments in middle market companies requiring equity capital of $20 million to $200 million per transaction. The fundraising effort is more than twice the size of the first fund and hit the hard cap.
“We are pleased with investor receptivity during this fundraise and are humbled that our investors have entrusted us with more than twice the capital we raised for our predecessor fund three years ago. The strong opportunities we see should enable us to build on Carlyle’s heritage in the middle-market space, as demonstrated by the 20 investments we have made since 2011,” said Rodney Cohen, Managing Director and Co-head of the U.S. middle market investment team.
In nearly three decades of investing, Carlyle has deployed $7.3 billion in 91 transactions in the mid-market buyout space. CEOF II’s investment strategy is to leverage the “big firm” value creation resources of Carlyle’s global investment platform, an important differentiator relative to smaller GPs in the market. Deal team members are able to perform deep due diligence, move into different industries and develop a proprietary, diversified, mix of assets across different industry groups.
To date, the 22-person middle market team has invested in companies including: Philadelphia Energy Solutions (formerly Sunoco Refinery), the largest refinery on the eastern seaboard; AxleTech International Holdings, Inc., a manufacturer of automotive components; ECi Software Solutions, a provider of enterprise resource planning and business applications; Coalfire, a provider of cyber-risk and compliance services; Service King, the largest collision repair multi-shop operator in Texas and the third largest in the United States and Worldstrides, a provider of educational student travel programs.
Brooke Coburn, Managing Director and Co-head of the U.S. middle market investment team, said, “Carlyle’s global reach and deep industry expertise feed into everything we do, from deal sourcing, to due diligence, to post-investment value creation. We work to leverage this competitive advantage by connecting our middle market portfolio companies into the firm’s 200+ portfolio companies, our bench of seasoned operating executives, and global offices, creating synergies and new business opportunities.”
A previous fund, Carlyle Equity Opportunity Fund I, a $1.1 billion fund launched in 2012, focused on smaller buyouts. CEOF was advised by Simpson Thacher & Bartlett LLP.
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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $188 billion of assets under management across 126 funds and 160 fund of funds vehicles as of September 30, 2015. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,700+ people in 35 offices across six continents.
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