Carlyle Is Said to Raise $13 Billion for U.S. Buyout Fund

Carlyle Group LP (CG), the world’s second-biggest manager of alternatives to stocks and bonds, raised $13 billion for its sixth fund dedicated to U.S. leveraged buyouts, according to a person with direct knowledge of the matter.

Carlyle Partners VI, which started collecting money in late 2011, exceeded its $10 billion target and turned away $1 billion of additional offers, said the person, who requested anonymity because the details haven’t been announced. Included in the fund is $1 billion from Washington-based Carlyle’s balance sheet and employees, the person said.

Christopher Ullman, a Carlyle spokesman, declined to comment.

Carlyle’s fund will be the largest pool dedicated to U.S. buyouts since the financial crisis. Buyout firms globally garnered $314 billion this year through September, 22 percent more than in the same period last year, according to London-based research company Preqin Ltd. KKR & Co. (KKR) plans to finish raising more than $8.3 billion for North American buyouts by next month, and Silver Lake Management LLC earlier this year collected $10.3 billion for technology LBOs.

“The U.S. is the special market,” Bill Conway, Carlyle’s co-founder and chief investment officer, said Nov. 11 at the firm’s investor day in New York. “It’s more homogeneous than many other markets and bigger than any other market. It’s frankly easier to attack.”

Blackstone Group LP raised $16 billion for global buyouts in 2012, and Apollo Global Management LLC is seeking as much as $17.5 billion for an eighth global fund. Both firms are based in New York.

The Carlyle pool follows a $13.7 billion vehicle that finished collecting money as the U.S. financial crisis was under way in late 2008. That fund had a 13 percent net internal rate of return and a value of 1.6 times invested capital as of Sept. 30.

To contact the reporter on this story: Devin Banerjee in New York at dbanerjee2@bloomberg.net

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

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