Carlyle fund to invest alongside latest special sits vehicle

 The two vehicles will target Europe, Asia and North America.

The Carlyle Group has raised $125 million for a co-investment vehicle to be deployed alongside its latest special situations fund, which the Washington-based firm closed on $2.5 billion last month.

CSP IV Co-investment will run as a parallel fund alongside Carlyle Strategic Partners IV, a source familiar with the situation said. Strategic Partners IV more than tripled its total commitments reached by its predecessor vehicle, Strategic Partners III, which hit $703 million, according to PDI data.

Carlyle declined to comment on the co-investment vehicle.

Strategic Partners IV is a 2015-vintage fund and has attracted commitments from both the California Public Employees’ Retirement System and Minnesota State Board of Investment, which have invested $150 million and $100 million, respectively, into the strategy.

It invests across Europe, Asia and North America, specifically targeting companies experiencing financial and operational distress, according to the announcement. The firm is open to investing on both sides of the capital structure, as well as public debt and bank loans.­

– David Brooke contributed to this report.