Carlyle Group LP (CG:US), the private-equity firm that went public this month, plans to seek about $3.5 billion for its fourth buyout fund in Asia, two people familiar with the matter said.
Carlyle, which has made initial approaches to investors, has yet to start marketing the fund, one of the people said, asking not to be identified because the information isn’t public.
At $3.5 billion, the buyout fund would be Carlyle’s biggest targeting Asia. It would be 37 percent larger than the firm’s last regional fund, completed in 2007. Private-equity companies raised $57 billion for regional funds last year, more than double the amount of 2009, as they sought to invest in China, according to Asian Venture Capital Journal.
Carlyle, based in Washington, plans an initial close on the new fund, Carlyle Asia Partners IV, in the second half of the year, a person with knowledge of the matter said this week. The private-equity firm has raised $5.1 billion since 1999 focusing on buyout deals in Asia, with Carlyle Asia Partners III accumulating $2.55 billion in 2007, according to its website.
Brian Zhou, a Beijing-based spokesman at Carlyle, declined to comment.
Private-equity investments in the Asia-Pacific region reached $69 billion last year, a 38 percent increase from 2009, ACVJ estimates show. KKR & Co. (KKR:US) and TPG Capital are raising multibillion-dollar pools targeting the region.
Fifty-three pan-Asia funds were attempting to raise a total of $22.3 billion to invest exclusively in the region as of last month, according to data compiled by Preqin Ltd., a London-based research firm.
Carlyle expects to raise money for 11 funds this year, co- Chief Executive Officer David Rubenstein said on a call with investors yesterday. The firm raised $671 million in an initial public offering this month, pricing below its target after struggling to win investors wary of the track record of buyout firms.
The company, the world’s second-biggest private-equity firm by assets, was among first global firms to raise a domestic fund in China. It collected 2.4 billion yuan ($380 million) for a local-currency fund with Beijing’s municipal government in July 2010. The fund was increased to 3.2 billion yuan a year later.
The number of buyout deals in China more than doubled last year to a record, according to Bain & Co. The value of leveraged buyouts in the country increased to $7.5 billion from $5.9 billion in 2010, Preqin estimates.
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