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Carlyle Group Said to Seek Capital for Asia buyout Fund

Carlyle Group LP (CG), the private-equity firm that went public this month, is seeking capital for a buyout fund that will invest in Asia, according to three people with knowledge of the situation.

The firm, based in Washington, plans an initial close on Carlyle Asia Partners IV in the second half of the year, said one of the people who asked not to be named because the information isn’t public.

Christopher Ullman, a Carlyle spokesman, declined to comment.

Private-equity firms are gathering capital to take advantage of Asia’s growth. KKR & Co. and TPG Capital are raising multibillion-dollar pools targeting the region. Both RRJ Capital Ltd. and CDH Investments Fund Management Co. are seeking to amass larger funds than their prior offerings.

Fifty-three pan-Asia funds were attempting to raise a total of $22.3 billion to invest exclusively in the region as of last month, according to data compiled by Preqin Ltd., a London-based research firm.

Carlyle Group was among the first to announce it had raised a yuan-denominated fund to invest in China. The firm raised 2.4 billion yuan ($380 million) in the first round of a fund with Beijing’s municipal government in July 2010, after setting up a $100 million joint fund with Fosun Group in Shanghai five months earlier. China increased the Beijing fund to 3.2 billion yuan last July.

Carlyle Group raised $2.55 billion for its prior fund, Carlyle Asia Partners III, in 2010 after starting the pool in 2007. That fund produced a multiple of 0.8 times invested capital and an internal rate of return of minus 11 percent for the California Public Employees Retirement System as of Sept. 30, according to the pension system’s data.

The Carlyle Asia Partners funds invest in areas including Australia, China, India, South Korea and Southeast Asia, according to the firm’s website. They invest in such industries as financial services, media and telecommunications, manufacturing and consumer products.

To contact the reporters on this story: Sabrina Willmer in New York at swillmer2@bloomberg.net; Cristina Alesci in New York at calesci2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net

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