Carlyle Raises $7.1 Billion for Fifth European Buyout Fund

(Bloomberg) -- Carlyle Group LP has raised 6.4 billion euros ($7.1 billion) for its fifth European buyout fund, exceeding its target by almost 1 billion euros, as investors with an appetite for high returns place cash in private equity.

The private equity firm secured commitments from over 300 investors, the New York-based firm said in a statement Thursday. The fund received commitments of around 190 million euros, or 3% of the total raised, from Carlyle partners and the firm, Marco De Benedetti, co-head of Carlyle Europe Partners said in a telephone interview.

The firm closed Carlyle Europe Partners V after fundraising for 18 months, De Benedetti said. Carlyle Europe raised 3.8 billion euros for its predecessor fund in 2014 and has invested 15.2 billion euros in Europe, according to the statement.

The new fund -- which is already 23% invested -- will continue the strategy of its predecessors, focusing on buying companies that have an enterprise value of 300 million euros to 1 billion euros, De Benedetti said.

Carlyle Europe has traditionally invested in countries including the Netherlands, Italy, Germany and the U.K. De Benedetti said the uncertainty surrounding the U.K.’s decision to leave the European Union makes people cautious.

“But the U.K. will remain an important market,” he said. “Compared to a few years ago, today’s environment is more encouraging and apart from Brexit there is no other significant threat to investing on the continent.”

Carlyle has already made five investments from its fifth buyout fund, including the acquisition of specialty chemicals assets from Akzo Nobel NV for 10.1 billion euros including debt.

To contact the reporter on this story: Sarah Syed in London at ssyed35@bloomberg.net

To contact the editors responsible for this story: Dinesh Nair at dnair5@bloomberg.net, Ben Scent, Marion Dakers

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