Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has raised $1.38 billion for energy credit investments. Carlyle Energy Mezzanine Opportunities Fund (“CEMOF”) primarily targets investments in projects and companies in the power generation and energy sectors requiring capital of $20 million to $150 million per transaction. The fundraising effort exceeded Carlyle’s initial goal of $750 million.
David Albert, Managing Director and Co-head of the energy credit investment team, said, “We are delighted with the faith investors have shown in us and in our strategy. CEMOF provides growth capital which is less dilutive and more flexible than that of traditional private equity. We enable owners to maintain control of their companies’ governance and to retain the bulk of the equity upside.”
“We see strong opportunities in the market and have a great team based in New York and Houston to pursue them, as well as the Carlyle global network to assist in sourcing and supporting transactions,” said Rahul Culas, Managing Director and Co-head of the energy credit investment team. “The fund is off to a strong start having already made six investments in a mix of power generation projects and upstream and downstream energy companies.”
CEMOF reflects Carlyle’s ongoing strategy of expanding its asset management business beyond the firm’s historical focus on control-oriented private equity. The fund resides within Carlyle’s Global Market Strategies segment, which comprises an array of structured credit, middle-market credit and distressed credit products, as well as hedge fund strategies (long/short credit; emerging markets equities; macroeconomic strategy; and commodities) – 55 funds with $30 billion in assets managed by 117 investment professionals in New York, Washington, DC, Los Angeles, Houston, Hong Kong and London as of September 30, 2012.CEMOF was advised by Simpson Thacher & Bartlett LLP.