Sunday, 29 May 2016
Last updated 1 day ago
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.