The Carlyle Group’s debut business development company vehicle has secured at least $155 million towards its $1 billion target, according to a US Securities and Exchange Commission document filed Wednesday.
Carlyle formally launched its GMS Finance BDC earlier this year. The vehicle will invest in first lien secured and unitranche loans to private US mid-market companies, with a focus on companies controlled by private equity firms.
“Depending on market conditions, we expect that between 70 percent and 80 percent of the value of our assets (including the amount of any borrowings for investment purposes) will be invested in middle market senior loans, with the balance invested in higher-yielding investments, which may include middle market junior loans such as corporate mezzanine loans, equity co-investments, broadly syndicated first lien senior secured loans and second lien loans, high-yield bonds, structured products and/or other opportunistic investments,” according to an 11 February SEC filing.
A Carlyle spokesperson declined to comment on fundraising.
The investments will likely range between $5 million and $25 million in size, though that may increase as the firm’s business grows, according to the filing. The BDC will also leverage Carlyle’s “extensive network of relationships” to source its investments.
The BDC falls under Carlyle’s Global Markets Strategies platform, which reported economic net income of $104 million for the first quarter, according to an earnings statement released Thursday. The $33.1 billion Global Market Strategies platform – which includes the firm’s CLO, hedge, long/short credit, energy mezzanine, structured credit and emerging sovereign group – generated $41 million in distributable earnings during Q1.