Carlyle Raises Over $3B To Tap European Tech Boom

Carlyle Raises Over $3B To Tap European Tech Boom
  • U.S. buyout firm Carlyle Group Inc CG raised over €3 billion ($3.12 billion) for a pan-European technology fund exploiting "pockets of life" in the economy.
  • Focused on lower mid-market and growth technology companies across Europe, the fund, called CETP V, has exceeded its €2.5 billion target in less than a year of fundraising.
  • Carlyle more than doubled the size of the previous fund CETP IV, Reuters cites the co-heads of Carlyle Europe Technology Partners.
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  • With an average investment horizon of five years, it targets cybersecurity, digital transformation, cleantech, and software applications for financial services, healthcare, and infrastructure, Michael Wand and Vladimir Lasocki said.
  • Lasocki said there were opportunities in less impacted private markets, despite the plunge in tech valuations and a broad tech selloff in public markets following the pandemic and crisis caused by the Ukraine war.
  • Carlyle aims to invest in 20-30 companies through the new fund and, in most cases, will buy a majority stake.
  • It will reserve 15% of the fund for growth equity transactions.
  • The fund will write equity cheques of up to €250 million, resulting in deals between €100 million - €500 million in enterprise value.
  • It will also work with the companies to upgrade management teams and accelerate growth via M&A transactions.
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  • Price Action: CG shares traded lower by 0.2% at $29.31 on the last check Monday.
  • Photo Via Wikimedia Commons

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