Carlyle closes second CLO, as middle-market fundraising heats up
Private equity firm The Carlyle Group (Nasdaq: CG) is continuing its foray into collateralized loan obligations with its latest capital raise, Carlyle US CLO 2017-2 Ltd. The firm’s second CLO in 2017 received approximately $610 million in financial commitments.
Carlyle US CLO 2017-2, which was arranged by Citigroup Inc. (NYSE: C), will invest predominantly in senior secured leveraged loans. The firm’s preceding fund, Carlyle US CLO 2017-1, received slightly more in capital with a total of $612 million. Carlyle’s structured credit and CLO business has $19.1 billion in assets under management.
Headquartered in Washington, D.C., the Carlyle Group is a global asset management firm with offices across North America, South America, Europe, the Middle East, Africa, Asia and Australia. The firm has nearly $162 billion in total assets under management and recently purchased Atotech, the specialty chemicals unit of French oil company Total SA, for $3.2 billion despite volatile oil prices. The new CLO isn’t the only fundraising the firm has done. In 2016, Carlyle completed capital raising for a $507 million CLO and raised a $2.8 billion credit fund in November to double down on the energy sector.
Debt funds, an area that is not yet as crowded as it is among private equity firms, have grown into a very popular pool for sourcing middle-market deals. Trinitas Capital recently closed its sixth CLO fund; Antares Capital raised a CLO with $2.1 billion in capital commitments in May; and THL Credit Advisors raised its third debt fund. In 2016, the Carlyle Group (Nasdaq: CG) closed its fourth CLO fund at $507 million; Littlejohn's Wellfleet closed a $406 million fund; Monroe Capital LLC closed a $800 million credit fund; Chicago-based NXT Capital LLC closed its fourth debt fund at $900 million; and Audax Group raised nearly $1.2 billion in capital for the firm’s fourth mezzanine fund.