Carlyle Raises $2.8B For Second Energy Credit Fund

Nov 1 2016 | 6:48pm ET

Carlyle Group has raised $2.8 billion for its second credit fund to focus on the beleaguered energy sector. 

The new fund, named Carlyle Energy Mezzanine Opportunities Fund II, will invest in power generation and energy-sector projects and companies, according to a company statement. Commitments are double what the firm raised for Carlyle’s initial energy credit fund, which closed in 2012. 

Transactions will range between $50 million to $500 million, the company said. “The second fund enables us to undertake larger transactions and fill a market need by providing investment capital to energy companies challenged to obtain capital from traditional sources,” said David Albert, co-head of the Energy Mezzanine team, in the statement. 

“We see opportunities to provide flexible capital as the industry recovers from a period of low commodity prices,” added Rahul Culas, co-head of the Energy Mezzanine team. “To date, we have made 15 investments across multiple energy subsectors, supported by our team of more than 20 investment professionals in New York and Houston.”

Carlyle’s credit platform resides within the company’s Global Market Strategies segment, which has $34 billion in assets under management. It consists of loans and structured credit funds, private credit, energy credit and distressed credit. Carlyle as a whole manages $169 billion in assets across 125 funds and 177 fund of funds vehicles as of September 30, 2016. 

In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Steinbrugge: Should Public Pension Funds Reduce their Hedge Fund Allocations?

Nov 1 2016 | 4:31pm ET

A growing number of large public pension funds - CalPERS, NYCERS, New Jersey, Ontario...