A Washington D.C. -based global asset management firm, specializing in private equity The Carlyle Group is planning to raise the amount of $5 billion for a fund that can hold stakes in companies for as long as 20 years, joining private equity firms such as Blackstone Group LP and CVC Capital Partners Ltd.
The firm expects to make investments that don’t fit within the mandate of Carlyle’s sixth main buyout fund, which raised $13 billion last year, said three people with knowledge of the matter, who asked not to be named because the information is private. Investments could include taking minority stakes in companies and backing family-owned businesses, the people said. The fund would charge lower fees than the firm’s traditional buyout offering, they said.
Randall Whitestone, a spokesman for Washington-based Carlyle, declined to comment on the plans.
Carlyle, the world’s second-biggest manager of alternative investments, is joining competitors in planning a new type of buyout vehicle with smaller fees and an extended term, reflecting the growing influence of clients in crafting investment offerings that benefit them. Carlyle, like many of its peers, has cut some fees over its history and shared a larger portion of other levies, such as transaction and monitoring fees, with clients.
Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Washington, D.C., Carlyle, The Carlyle Group, Blackstone, Blackstone Group LP, CVC Capital, CVC Capital Partners Ltd., Family-Owned Businesses, Randall Whitestone.