The Carlyle Group raises US$3.1bn for inaugural Credit Opportunities Fund

Fund meets growing demand for private capital by midsized and large businesses, including non-private equity sponsored companies and strategic corporates

The Carlyle Group announced the final close of its inaugural Carlyle Credit Opportunities Fund (CCOF), a US$2.4 billion fund that invests in directly originated private capital solutions primarily for upper middle market borrowers, including non-private equity sponsored, family or entrepreneur-owned companies seeking an alternative to traditional capital markets or private equity. Including available leverage, investable capital by CCOF has increased to US$3.1 billion.

The fund has already committed approximately US$850 million to ten businesses in North America and Europe across various industries where Carlyle’s broader platform has domain expertise. These include investments in a founder-owned homebuilder, a publicly listed media company and a subsidiary of a large corporate focused on renewable energy.

Alexander Popov, managing director and head of the Carlyle Credit Opportunities team, says, “Carlyle’s Credit Opportunities Fund is meeting a growing need for bespoke capital solutions among borrowers seeking an alternative to traditional debt markets or private equity. Leveraging Carlyle’s global platform, we seek to source and drive value in complex or overlooked investment opportunities while structuring strong downside protection and current yield.”

A 15-person team based in New York and London advises the Carlyle Credit Opportunities Fund, and invests across the capital structure through a combination of secured loans, senior subordinated debt, mezzanine debt, convertible notes and other debt-like instruments, as well as preferred and common equity. The fund will benefit from proprietary investment opportunities originating from within Carlyle and the firms’ global resources and operating expertise.

Taj Sidhu, managing director and head of Carlyle’s European Credit Opportunities advisory team, based in London, said, “Our team benefits from the firm’s approximately 640 investment professionals globally, which include approximately 150 investment professionals across Europe including in Barcelona, Milan, Munich and Paris where Carlyle has had local teams for 20 years.”

Carlyle’s Global Credit platform, with US$46 billion in assets as of March 31, includes funds in liquid credit, illiquid credit and real assets credit. These businesses have more than 100 investment professionals in New York; Washington, DC; Los Angeles; Chicago; Hong Kong; and London.

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