Carlyle Group Inc. expects to reach $17bn of its $22bn fundraising goal for its flagship private equity fund in coming months, according to people familiar with the matter.
The firm closed on almost $12 billion of investor money for its eighth flagship fund last year, and executives anticipate collecting roughly $5 billion more by the end of the second quarter, the people said.
A spokeswoman for Washington-based Carlyle declined to comment.
It’s the first flagship pool launched since Kewsong Lee emerged as sole chief executive officer in 2020, after co-CEO Glenn Youngkin’s departure.
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How quickly and how much Carlyle raises for the fund will be a referendum on Lee’s plan to turbocharge growth and profits. It previously announced plans to raise about $130 billion from 2021 through 2024.
Private equity firms are seeking to cash in on institutional investors’ thirst for higher returns, and shore up their coffers as they pursue new deals.
There were 865 buyout and growth funds seeking new money at the end of last year. If they hit their fundraising goals, they could inject $530 billion into private markets, according to data compiled by Bloomberg.
Apollo Global Management Inc. is targeting $25 billion for its next flagship buyout fund. Blackstone Inc. has also been preparing to raise its largest private equity fund.
Read more: Blackstone Weighs Up to Record $30 Billion for Flagship Fund
In the past year, Lee instructed Carlyle’s buyouts and growth dealmakers to work more closely, according to people familiar with the matter. The latest fund, with roughly $2 billion earmarked for growth deals, reflects that effort.
If Carlyle meets its goal, the new flagship fund will be 19% larger than the previous offering, which closed in 2018.
Source: BNN Bloomberg
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