Carlyle Group has closed on a new international energy fund with commitments of $2.5 billion from 160 investors, according to media reports. The new fund, which surpassed Carlyle’s initial $1.5 billion target, will invest exclusively in oil and gas projects located outside the U.S.
Carlyle is in good company. Since the collapse in oil prices during 2014, a number of other private equity firms, including Blackstone, KKR, Goldman Sachs, Apollo and Riverstone, forming funds to invest in equity and/or debt securities of energy businesses that have been hammered by the drop in prices. The high-yield bonds issued by energy firms over the past several years to pay for exploration, production and development have come under particular pressure.
The new fund is the largest initial fund launch since Carlyle was founded nearly thirty years ago, according to a company statement.
Carlyle is one of the largest private equity companies in the world, with assets under management of $194.5 billion as of Dec. 31, 2014.