Carlyle Is Said to Raise $2 Billion for Flagship Fund

Carlyle Group
A sign reading 1001 Pennsylvania Avenue, headquarters of the Carlyle Group LP, stands in Washington, D.C. Photographer: Andrew Harrer/Bloomberg

Carlyle Group LP, the Washington-based private-equity firm that went public this year, has locked in at least $2 billion in commitments for its flagship buyout fund, according to two people familiar with the situation.

Carlyle Partners VI LP, which is seeking about $10 billion, began formally gathering capital in February and has held an informal close on the fund, said the people, asking not to be identified because the information is private.

Randall Whitestone, a spokesman for Carlyle, declined to comment.

Carlyle, among the last of the biggest buyout firms to start gathering a flagship fund after the financial crisis, has offered fee cuts to entice larger commitments as it competes for capital in a crowded market. A record 1,858 private-equity funds are seeking money, according to data compiled by Preqin Ltd., a London-based research firm.

KKR & Co., Warburg Pincus LLC, Providence Equity Partners LLC and Leonard Green & Partners LP started raising money last year and have either wrapped up or closed on most of their funds. Blackstone Group LP, which was the first of the large buyout firms to enter the post-crisis market, raised more $16 billion for its buyout fund.

Advent International Corp. is nearing an initial close on 70 percent of the 7 billion euros ($8.8 billion) target for its flagship fund, said one of the people. Chuck Dohrenwend, an outside spokesman for Advent at Abernathy MacGregor Group, declined to comment on the fundraising.

Fee Discounts

A successful fundraising of Carlyle Partners VI, or CP VI, is important to the firm as it seeks to convince public market investors that it can keep increasing fee-generating assets.

Carlyle is offering backers who put up $500 million or more for CP VI a discounted management fee of 1.1 percent on committed capital, compared to smaller investors who will be charged as much as 1.5 percent, depending on the size of their commitment, two people familiar with the fund said in February.

Co-founded by David Rubenstein, William Conway and Daniel D’Aniello, Carlyle went public in May. It is at least the fifth buyout firm to go public since Fortress Investment Group LLC held an IPO in February 2007, followed by Blackstone.

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