Coutts has raised $114 million from its existing clients for Coutts Private Equity Limited Partnership, which closed last month. Coutts has teamed up with the Carlyle Group to invest the fund-of-funds, which will spread risk across seven new and existing Carlyle funds with a worldwide focus on the US, Europe, Asia and Japan. The launch of the fund reinforces Coutt’s position as a significant player in the alternative investment market.
Coutts invited existing investors to commit a minimum of $250,000 to the fund. The fund is expected to have a twelve-year life with investors committed for the full term. The underlying investments will typically be held for around five years.
Robert Dawkins, head of alternative investments at Coutts, said: “No other private equity firm could offer us the same breadth of funds from which to choose.” He added that Carlyle’s impressive track record made the firm the ideal partner for investments in private equity.
Coutts Group is an international private banking group owned by The Royal Bank of Scotland. The group manages capital for over 70,000 high net worth clients from a network of 23 offices in the UK and 15 internationally.
The launch of the fund-of-funds is indicative of the growing interest in private equity among institutions, but also among private investors. Glenn Youngkin, a managing director of the Carlyle Group, said: “While public markets struggle, a growing number of companies seek private equity to finance their further growth and development. We see a great opportunity ahead of us to work with quality companies and enhance their value over the long term. This is a great time to invest.”