Carlyle has asked for more time to raise what it hopes will be its largest ever fund, in a sign that investors’ appetite for private equity is waning.
The US buyout titan had been hoping to raise £18billion for its latest America-focused fund by March 2023. But so far, investors have been reluctant to commit.
Currently only around £14billion has been collected, sources told the Financial Times.
US buyout titan Carlyle had been hoping to raise £18bn for its latest America-focused fund by March 2023. But so far, investors have been reluctant to commit
Private equity firms raise large pots of money from investors such as pension funds and sovereign wealth funds, and use this to buy businesses.
They try to boost the businesses’ value, often by cutting costs and funding expansion, before selling them for a profit.
Since the financial crisis, private equity firms have found it easy to raise massive funds as investors have been desperate to make a good return in a low-interest rate environment.
But with rates rising and clouds gathering over the global economy, investors are becoming more reluctant to lock away their cash in a private equity fund.
Other buyout groups have also been struggling – Apollo Global Management said last month that it was also having to drag out the fundraising timeline on its latest fund.
But this is just the latest blow to Carlyle, which has also been rocked by a leadership crisis.
Kewsong Lee left unexpectedly last year after his request for a £240million pay package was rejected by Carlyle’s founders.
William Conway, one of the co-founders, is currently acting as interim boss.
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