Carlyle Group Inc. is seeking to raise as much as $27 billion for its latest flagship fund, in what would be the industry’s largest-ever private equity pool.
The firm is in discussions with investors about the size of the fund, according to people familiar with the matter, and the total could change. Should it meet its goal, Carlyle would surpass Blackstone Group Inc.’s $26 billion record from 2019. The fund would also be 46% larger than its previous flagship pool from 2018.
Private equity firms are gathering billions of dollars as demand for alternative assets surges among yield-hungry investors. This month, Hellman & Friedman raised $24.4 billion for its latest flagship fund, the firm’s biggest to date. Private equity funds took in $514 billion in the first half of this year, 70% more than the same period in 2020, according to data provider Preqin.
A representative for Washington-based Carlyle declined to comment.
The eighth flagship vehicle from Carlyle will include a strategy earmarked for growth-focused companies, the people familiar said. The fund will invest in various sectors including technology, health care and retail. Bloomberg previously reported that the fund planned to gather $10.5 billion in its first phase of capital-raising by this month.
Shares of buyout firms have soared on the prospects for the industry. Carlyle rose 47% this year through Thursday, while KKR & Co. and Blackstone have jumped 50% and 70%, respectively, in that period.