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Carlyle raises $3 billion for new credit opportunities fund

Mumbai: Global investment firm The Carlyle Group has raised its new Carlyle Credit Opportunities Fund (CCOF), a $2.4 billion fund.

The fund will invest in 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, said a press statement.

Including available leverage, investable capital by CCOF increases to $3.1 billion.

The fund has already committed approximately $850 million to ten businesses in North America and Europe across various industries.

“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,” said Alexander Popov, Managing Director and Head of the Carlyle Credit Opportunities team.

Carlyle’s Global Credit platform, with $46 billion in assets as of March 31, 2019, includes funds in liquid credit, illiquid credit and real assets credit. These businesses have more than 100 investment professionals in the US, Hong Kong and London. Carlyle has $222 billion of assets under management as of March 31, 2019.

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.

In June last year, Carlyle had closed its fifth Asia fund at $6.55 billion, exceeding its target of $5 billion and 65% more than its previous fund.

In India, Carlyle has invested more than $2 billion through 35 transactions across all Carlyle funds. Its current investments in India include SBI Cards, PNB Housing Finance, SBI Life Insurance, Metropolis Healthcare, Medanta Hospitals and Delhivery Logistics.

Last year, another PE major KKR& Co had closed KKR Private Credit Opportunities II, a $2.24 billion global fund for privately negotiated subordinated debt securities, corporate mezzanine investments as well as asset-backed and specialty finance investments.

Source: Economic Times