Firms & Funds

Carlyle raises more than $700 mln for fourth distressed fund

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Carlyle Group, private equity, Fresno County, California, pension fund
David M. Rubenstein, Co-Founder and Co-Chief Executive Officer of the U.S. Carlyle Group, attends a session at the annual meeting of the World Economic Forum (WEF) in Davos January 24, 2014. REUTERS/Denis Balibouse (SWITZERLAND - Tags: POLITICS BUSINESS) - RTX17SPN
  • Carlyle is reportedly targeting $2 bln for fourth Strategic Partners fund: report
  • Raised $576 mln from external investors
  • More than $700 mln including employee contributions

Carlyle Group has raised more than $700 million for its fourth distressed-investment fund, already matching the total raised for the predecessor vehicle.

It’s not clear how much Fund IV is targeting. A media report pegged the target at $2 billion. Carlyle spokeswoman Elizabeth Gill declined to comment.

Carlyle filed a Form D earlier this month, showing Fund IV has raised about $576 million, including the GP commitment. The fund, however, has raised more than $700 million when including commitments from Carlyle employees, according to a person with knowledge of the fund.

The fund is eclipsing the tally of the prior fund under new leadership from the past fund. The Carlyle Strategic Partners group is co-led by Ian Jackson and Shary Moalemzadeh, who were moved into the leadership role in 2013.

They succeeded Michael Stewart and Raymond Whiteman, who left to start their own shop. Stewart and Whiteman lead Stellex Capital Management, which focuses on middle-market companies in distress and special situations, according to the firm’s website.

Carlyle closed Strategic Partners Fund III in 2013. Performance on Fund III could not be found. Fund II, which closed on $1.35 billion in 2007, was generating an 11.8 percent net internal rate of return and an 1.6x multiple as of June 30, 2015, according to performance information from California Public Employees’ Retirement System.

Strategic Partners focuses on debt and equity investments in distressed assets, as well as in cyclical, contrarian or event-driven situations and in broader market dislocations.

Earlier this year, Carlyle hired Christian Schmitz as a managing director with the Strategic Partners group, according to a report in Finalternatives. Schmitz is listed on Carlyle’s website.

Action Item: Check out the Form D for Strategic Partners Fund IV here: http://1.usa.gov/1NxNXAG

Photo: David M. Rubenstein, co-founder and co-chief executive officer of U.S. Carlyle Group, attends a session at the annual meeting of the World Economic Forum in Davos, January 24, 2014. Reuters/Denis Balibouse