Carlyle has raised $1.5bn in the first close of its new asset-backed income fund, as the firm continues to scale its credit platform amid a slowdown in private equity deal activity, according to sources cited by Bloomberg.

The vehicle, which is structured as a perpetual fund without a fixed lifespan, has attracted commitments from institutional investors including pension funds and sovereign wealth funds. The Texas County & District Retirement System has committed $150m, highlighting early support from large allocators.

The fund reflects Carlyle’s strategic shift towards asset-backed finance, a segment that has gained momentum as banks retreat from lending activities tied to specific pools of collateral.

The strategy focuses on providing financing backed by tangible assets rather than corporate cash flows, positioning the fund to capture opportunities across a growing segment of the $1.8tn private credit market.

In parallel, Carlyle has strengthened its capabilities in the space through senior hires, including RJ Madden, formerly a managing director at KKR, who has joined as deputy head of asset-backed finance.

However, the expansion comes amid mixed sentiment towards asset-backed lending, following recent disruptions in the sector. Despite these concerns, investor demand continues to build, driven by the appeal of secured exposure and differentiated return profiles.

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