Carlyle Financial Services Fund Nets Half Of Target

Jun 24 2014 | 10:12am ET

Investor appetite for financial-services companies may be on the wane, if the Carlyle Group’s fundraising difficulties are any indication.

The private-equity giant has closed its second financial services fund with just $1 billion, less than it raised for its first fund in 2010 and just half the $2 billion it established in 2012. The markedly lower expectations are due to the European Central Bank’s efforts to avoid sovereign defaults and to protect the continent’s financial system, Bloomberg News reports.

“We believe the fund is scaled appropriately to the opportunity set,” Carlyle spokesman Randall Whitestone said. Those opportunities are to be sought in asset management, insurance, technology and business services, with a focus on those created by the European debt crisis, new regulations and growing affluence in emerging markets.

Carlyle’s first Global Financial Services Partners fund has enjoyed an internal rate of return of 11%. The firm’s financial-services group is led by UBS veteran Olivier Sarkozy, the half-brother of former French President Nicolas Sarkozy.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of