Carousel Capital is commemorating the private equity firm’s twentieth anniversary with the close its fifth buyout fund. The fund, called Carousel Capital Partners V LP, received approximately $400 million in capital commitments.
Fund V has not yet made any investments, according to managing partner Bill Hobbs, and received support from both existing and new investors including; pension funds, endowments, foundations, and insurance companies. The fund raised nearly $135 million more than the firm’s previous fund, Carousel Capital Partners IV LP, which closed at $265.5 million. The firm began fundraising for Fund IV in 2011. Carousel invested in Express Oil Change & Service Center, a car-care facility operator that it sold to Thompson Street Capital Partners and later re-purchased, with funds from Fund IV.
Carousel, based in Charlotte, North Carolina, is a PE firm founded by Nelson Schwab III and Erskine Bowles, who was appointed as the White House chief of staff for the Clinton Administration in 1996, shortly after launching Carousel. Bowles later returned to the firm in 1999. Carousel typically invests in three targeted sectors including businesses services, consumer services and healthcare services. The firm has previously invested in: dental instrument supplier Brasseler USA, military lighting systems provider Jameson LLC, database management company Agdata, and disease-management company Axium Healthcare Pharmacy.
2016 was a banner year for private equity firms fundraising. Recent fund raises include: healthcare investment firm CRG closing a $1.25 billion credit fund to focus on the sector; Carlyle’s $2.8 billion credit fund for the energy sector; Kainos Capital’s closing of a second fund to target consumer goods and food and beverage deals; Arsenal Capital Partners’ closing of a $1.3 billion private equity fund; Chicago-based NXT Capital LLC’s closing a $900 million debt fund; and Monroe Capital LLC’s closing a second credit fund at $800 million. Credit Suisse Securities LLC (NYSE: CS) served as financial advisor and placement agent for Fund V while Latham & Watkins LLP served as legal counsel.