Carlyle close to $2.5bn energy mezz target

The global firm has raised almost $2 billion for its second energy mezzanine fund.

Carlyle is moving towards its $2.5 billion target for its second energy mezzanine fund. Carlyle Energy Mezzanine Opportunities Fund II has raised more than $1.78 billion in commitments, according to two filings with the Securities and Exchange Commission.

A spokesperson for The Carlyle Group declined to comment on fundraising.

Last December, Pennsylvania Public School Employees’ Retirement System (PSERS) committed $250 million to the fund which will invest in privately-negotiated financings for energy projects or companies that hold energy assets, according to a description of the vehicle by Portfolio Advisors and published by PSERS.

The gross internal rate of return targeted by the US and Canada-focused vehicle is between 15 and 18 percent, with up to 8 percent of that total generated from cash interest payments or dividends and the balance sourced from payment-in-kind interest, warrants or other structured equity, the presentation shows.

Loans by the mezzanine fund will range from $30 million to $500 million in size with two- to five-year maturities.

The second fund is the successor to Carlyle’s $1.38 billion energy mezzanine fund that began investing in 2011. 

Global alternative asset manager The Carlyle Group had $193 billion in assets under management, as of 31 March 2015.