Carlyle wraps up second power fund at $1.5 bln

  • Firm raises $2.2 bln in Q1, expects $15 bln in 2016
  • Holds final close on power fund; secondary fund
  • Carlyle Strategic Partners IV currently fundraising

Carlyle Group drew in $2.2 billion in commitments across its platforms in the first quarter, helping the firm reach final closes of $1.5 billion on Carlyle Power Partners II and $550 million for Metropolitan Real Estate Partners Secondaries & Co-Investments Partners.

Carlyle Group Co-CEO David Rubenstein said the firm continues to hit hard caps “on virtually all of the products we have in the market,” according to the firm’s April 27 conference call with Wall Street analysts.

In the case of the power fund, Carlyle more than tripled the size of the fund from its predecessor. Housed in its Real Assets unit, the firm’s power funds invest in power generation and related assets, mostly in North America.

Carlyle exceeded its $450 million target for Metropolitan’s secondary fund, part of its Carlyle Solutions business that manages a global real estate portfolio, Rubenstein said.

Also on the fundraising front, Carlyle held a first close of more than $675 million on Carlyle Strategic Partners IV, which Rubenstein described as its “next generation distressed investing fund.” The fund comes after Carlyle closed Fund III in 2013 with $700 million. The first fund in the series raised $1.35 billion in 2007.

Carlyle said it’s also approaching first close in its Carlyle Asia Growth Partners V, which has a reported target of about $1 billion, as well as its global infrastructure fund and its China real estate fund.

It also continues to draw in capital for Carlyle Global Partners, the firm’s longer-term fund it revealed in February with hold periods of up to 20 years. The firm had $3 billion in commitments at that time, according to a report.

Overall, Carlyle expects to raise about $15 billion in 2016, although first-quarter fundraising came in lighter than normal, he said.

The Washington firm’s fundraising update came as it reported economic net income of $89 million, down from $273 million in the year-ago period. The firm benefited from strong carry fund valuations in its real estate and U.S. buyout funds, offset by depreciation in its Asia buyout funds. It also booked lower valuations in its legacy energy funds, and its Global Market Strategies unit, which manages credit and hedge funds.

Action Item: Carlyle first-quarter results,

Photo of David Rubenstein courtesy of Reuters