Carlyle closes distressed fund

Carlyle Group, a US-based buyout house, has raised US$1.35bn (€858m) for the acquisition of distressed assets to take advantage of the deterioration in the financial markets.

Carlyle has held a final close of Carlyle Strategic Partners II (CSP11), its second distressed debt and corporate opportunities fund, which will invest in publicly traded bonds and banks loans as well as purchasing ailing companies outright. Although leverage will be used, it will not play a major role in purchases.

“With the support of the Carlyle organisation, CSP is now poised to source an increasing number of proprietary deals across virtually all industries as well as achieve unique industry insights on mainstream distressed situations,” said Ray Whiteman, managing director and co-head of CSP.