The Carlyle Group has raised $3.1 billion for its debut credit fund, joining peers such as Blackstone and KKR in chasing opportunities in the growing private debt investment market.
The Carlyle Credit Opportunities Fund will focus on middle-market borrowers seeking an alternative to traditional capital or private equity, the US-based investment firm said in a statement.
Carlyle said the fund had an initial target of $2 billion but raised $2.4 billion of equity commitments from global institutional investors. The remaining capital comes from leverage available with Carlyle Group.
The fund has already committed around $850 million to 10 entities across North America and Europe in industries where Carlyle has domain expertise, it said.
“We seek to source and drive value in complex or overlooked investment opportunities while structuring strong downside protection and current yield,” Carlyle managing director and credit opportunities team head Alexander Popov said.
Managing director and global credit platform head Mark Jenkins added that the firm’s focus was on securing “the best investment opportunities” for its investors.
The fund will be advised by a 15-person team based out of New York and London. It will invest through instruments such as secured loans, senior subordinated debt, mezzanine debt and convertible notes.
Separately, Carlyle has also raised $2.2 billion for its Global Infrastructure Opportunity Fund. The fund invests in infrastructure assets in countries that are part of the Organisation for Economic Cooperation and Development. It focuses predominantly on projects in transport and logistics, energy and power infrastructure and water and agriculture infrastructure.
Carlyle is the latest alternative investment firm to offer private credit. Many of its peers already operate in this segment. In May, for instance, US-based private markets investment management firm Adams Street Partners raised $1.1 billion for its first private credit fund.
Some private equity firms have even floated India- or Asia-focussed credit platforms. KKR is preparing to float its third India-focussed credit fund, VCCircle reported in January. Baring Private Equity Asia last year floated a large India-focussed private credit fund.
Carlyle deploys its capital across four segments: corporate private equity, real assets, and global credit and investment solutions. The firm manages around $222 billion in assets as of March 31. It employs over 1,700 people in 33 offices across the world.