OREANDA-NEWS. Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has raised $2.4 billion for U.S. middle market buyout investments. Carlyle Equity Opportunity Fund II (CEOF II) targets control investments in middle market companies requiring equity capital of $20 million to $200 million per transaction. The fundraising effort is more than twice the size of the first fund and hit the hard cap.
"We are pleased with investor receptivity during this fundraise and are humbled that our investors have entrusted us with more than twice the capital we raised for our predecessor fund three years ago. The strong opportunities we see should enable us to build on Carlyle's heritage in the middle-market space, as demonstrated by the 20 investments we have made since 2011," said Rodney Cohen, Managing Director and Co-head of the U.S. middle market investment team.
In nearly three decades of investing, Carlyle has deployed $7.3 billion in 91 transactions in the mid-market buyout space. CEOF II's investment strategy is to leverage the "big firm" value creation resources of Carlyle's global investment platform, an important differentiator relative to smaller GPs in the market. Deal team members are able to perform deep due diligence, move into different industries and develop a proprietary, diversified, mix of assets across different industry groups.
To date, the 22-person middle market team has invested in companies including: Philadelphia Energy Solutions (formerly Sunoco Refinery), the largest refinery on the eastern seaboard; AxleTech International Holdings, Inc., a manufacturer of automotive components; ECi Software Solutions, a provider of enterprise resource planning and business applications; Coalfire, a provider of cyber-risk and compliance services; Service King, the largest collision repair multishop operator in Texas and the third largest in the United States and Worldstrides, a provider of educational student travel programs.
Brooke Coburn, Managing Director and Co-head of the U.S. middle market investment team, said, "Carlyle's global reach and deep industry expertise feed into everything we do, from deal sourcing, to due diligence, to post-investment value creation. We work to leverage this competitive advantage by connecting our middle market portfolio companies into the firm's 200+ portfolio companies, our bench of seasoned operating executives, and global offices, creating synergies and new business opportunities."
A previous fund, Carlyle Equity Opportunity Fund 1, a $1.1 billion fund launched in 2012, focused on smaller buyouts. CEOF was advised by Simpson Thacher & Bartlett LLP.