Carlyle Flagship Buyout Fund to Be Biggest for North America

  • New fund will be largest dedicated to North America deals
  • Carlyle Partners VII to include $1 billion from firm, partners

David Rubenstein

Photographer: David Paul Morris/Bloomberg

Carlyle Group LP is approaching the $18.5 billion cap for a flagship buyout pool that will be the largest targeting deals in North America, people with knowledge of the situation said.

The firm is expected to close Carlyle Partners VII as early as the first quarter of 2018, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The total, exceeding the initial $15 billion target for the fund, will include about $1 billion from Carlyle and its executives, known as the GP commitment, the people said.

A representative for Washington-based Carlyle declined to comment.

The new fund will be the first to be invested under Kewsong Lee and Glenn Youngkin, the new co-chief executive offers set to formally succeed co-founders David Rubenstein and William Conway in 2018. The moves cap a series of changes at the firm that included naming Sandra Horbach as co-head of U.S. buyouts last year alongside Pete Clare.

Axios previously reported that Carlyle is in process of holding a first close on the new fund, the point at which it can begin investing capital. That will start the pool with $13 billion, matching the amount raised for the firm’s 2013 predecessor fund.

Carlyle’s fund will top KKR & Co.’s latest effort, which at $13.9 billion is currently the largest pool dedicated to North America, according to data compiled by Bloomberg.

As of Sept. 30, Carlyle oversaw $174.4 billion in private equity holdings, real estate and credit assets. Rubenstein is the host of the Bloomberg television and digital series, “The David Rubenstein Show: Peer-to-Peer Conversations.”

— With assistance by Sarah Syed

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