Firm: The Carlyle Group
Fund: Carlyle Infrastructure Partners
Target: $1 billion
Amount raised: $301 million (first close)
Advancing the cause of its newly formed infrastructure team, The
According to the SEC filing,14 investors made a minimum commitment of $10 million to
Carlyle founded its infrastructure group earlier this year. The group is expected to invest in U.S. highways, toll roads and damns in deals ranging in transaction value from $100 million to $1 billion, both through public-private partnerships and other agreements. Infrastructure most commonly refers to large public works projects such as highways, toll roads and dams. Infrastructure projects tend to be very capital intensive, often requiring partnerships with government through public-private partnerships and concession agreements that involve the sharing of toll revenue.
Robert Dove, managing director of the infrastructure group, joined Carlyle after leading a financing and development team at contracting company Bechtel Enterprise that invested in public-private partnerships overseas. Fellow Managing Director Barry Gold was the former co-head of Citigroup/Salomon Smith Barney’s structured finance group. The two have six junior investment professionals working with them.
Carlyle has already been investing in infrastructure deals, including ones in Asia. Separate from its infrastructure group, Carlyle agreed to buy 50% of Xugong Group Construction Machinery Co., which makes construction machinery. It had initially sought to take an 85% stake in the company (see Buyouts, Oct. 23, 2006). But a high-profile campaign against the deal by Xugong competitor Sany Heavy Industries Co. convinced Carlyle to scale back the deal.
Infrastructure investing is growing more popular among buyout and private equity firms.
The infrastructure needs of the United States–its highways, railways, dams and bridges–are great and expected to grow. The American Society of Civil Engineers released a report last year that found that $1.6 trillion needs to be invested in the United States. Researchers at the Asia Development Bank found that Asia is likely to need $20 trillion and $30 trillion in infrastructure investments over the next 10 years. — M.S.