The Carlyle Group has raised $2.5 billion for its first international energy fund, the largest first-time fund in the firm’s history. Carlyle International Energy Partners began raising capital in mid-2013 and has attracted 160 investors, Carlyle said in a statement on Friday (20 March). The firm is also still raising money for its Carlyle Energy Mezzanine Fund II. That fund began raising money in October 2014 and is also targeting $2.5 billion. Carlyle is reportedly close to a $1.3 billion second close for the mezzanine strategy, according to recent reports.
Between the capital collected on the two funds, other broader funds and separate accounts, Carlyle now has $10 billion of capital to deploy across to energy investments. Many other alternative investment firms are also raising separate or combined private equity and debt strategies to capitalize on the dislocation in the sector. They include Blackstone/GSO, Apollo Global Management, KKR, Oaktree Capital Management and Goldman Sachs, among others.
“We are grateful for the support of our investors who share our excitement at the current investment opportunities across the international oil and gas sector. The vision and experience of Marcel van Poecke, who leads our international energy team, made this possible,” Carlyle chairman Daniel D’Aniello, said in a statement.
“This is one of the best energy investing environments I’ve seen in more than 30 years in the industry. Carlyle’s broad energy platform plus a significant amount of dry powder enables us to leverage current opportunities and market volatility across the global energy markets,” commented van Poecke, head of the Carlyle International Energy Platform (CIEP).
CIEP’s current investments include: Varo Energy, a Swiss-based refining, storage and distribution business operating in Germany and Switzerland; Discover Exploration, an oil and gas exploration company based in the UK that focuses on Africa, Latin America and Asia; and HES International, a European liquids, dry-bulk storage and handling business located in The Netherlands.
Established in May 2013, the CIEP team focuses on oil and gas exploration and production mid- & downstream, refining and marketing and oil field services in Europe, Africa, Latin America and Asia. The team operates primarily from the firm’s London offices.
The Carlyle Group is an alternative asset manager with $194 billion of assets under management across 128 funds and 142 funds-of-funds as of December 31. The firm is headquartered in Washington, D.C. and is traded publicly on the NASDAQ stock exchange.