Carlyle is planning to raise a second global energy fund with a target of $1 billion. No official announcement has been made and it is still early days, but the fund hopes to secure the capital within a year. Carlyle has already tested the water in this sector with its first $222 million energy fund, Carlyle/Riverstone Global Energy Power Fund I, which was raised in 2000 and is almost fully committed.
Carlyle formed the joint venture with Riverstone Holdings to pursue global energy private equity opportunities. Riverstone Holdings is a private equity firm focused on the energy and power industry.
Carlyle believes recent changes inthe energy and power sector have created tremendous opportunities for private equity. Incentives for investors include the stabilisation of commodity prices at higher levels; the widespread global trend toward deregulation, consolidation and privatisation in the energy sector; and a need for and growth in energy-related technology companies.