Ex-Carlyle exec’s shop Broad Sky closes in on target for debut fund

Broad Sky Partners, led by the former co-head of Carlyle Group’s long-dated investment platform, is making steady progress toward the $500 million goal for its debut, according to sources and an SEC filing.

Broad Sky is among a few first-timers in the market this year that, despite headwinds for new shops as LPs pull back commitment pacing, are finding ways to attract capital. Fundraising is taking longer but many LP institutions still have appetites for backing new shops.

“As allocations are going down, you have emerging managers not getting their fair share,” said a fund-of-funds executive who works with new managers. “It’s a tougher market for them. That being said, there are going to be a number of them that are successful in their fundraising and maybe even raise over their target size.”

Broad Sky is working with Asante Capital Group on the fundraising, according to a Form D filed in April. The firm raised about $303.7 million as of April, according to the Form D. A Broad Sky spokesperson declined to comment.

Broad Sky, led by ex-Carlyle executive Tyler Zachem, calls itself a “thematic investor,” focusing on trends like digitalization, demographics and social change, enhanced data and analytics, mobility evolution, food innovation, commerce shifts, ESG, cybersecurity and business automation, according to the firm’s Form ADV.

The firm targets investments in services businesses across mobility, professional, industrial, IT, and data and information. In consumer, it focuses on industries like health and beauty, food and ingredients, pet, entertainment and leisure and consumer services, the ADV said.

It targets control or joint control investments through majority stakes or minority investments with aspects of control over material capital, strategic and corporate governance decisions, the ADV said.

“Broad Sky intentionally limits its focus to business services and consumer sectors because the firm believes, and experience has proven, that disciplined focus is one key to success,” the firm said in the Form ADV.

In April, the firm invested in Bully Pulpit Interactive, a strategic communications and public affairs agency. Existing investor Svoboda Capital retained a stake in the company, according to a statement.

Broad Sky has had an interesting journey to where it is today. Zachem and David Basto, both partners at MidOcean Partners, formed Broad Sky in 2013, Buyouts reported at the time, citing a Form ADV. As they were building their new firm, (having left MidOcean), the Broad Sky team joined Carlyle, with the larger firm acquiring a portion of the smaller firm’s investments, according to Broad Sky’s website.

Zachem relaunched Broad Sky in 2021, his biography said. Basto remained at Carlyle; other partners at Broad Sky include ex-Carlyle executive Adam Glucksman; former MidOcean exec Jonathan Marlow; and Jodi Kahn, with expertise on the operations side, having previously formed her own consultancy, JGK Ventures Consulting, as well as working as an operating adviser to Carlyle’s mid-market fund, Carlyle US Equity Opportunities Fund, her bio said.

At Carlyle, Zachem co-led the firm’s long-dated investment platform, called Carlyle Global Partners.

Broad Sky is not the only high-profile emerging manager with Carlyle pedigree in the market this year. Another popular name, Capitol Meridian, has been in market targeting $650 million for its debut fund. The firm was formed by ex-Carlyle executives Adam Palmer and Brooke Coburn in 2021.

Buyouts will be exploring the challenges facing first-time funds and emerging managers in the June issue. Visit here for our complete coverage of the emerging manager space.