The Carlyle Group, Global alternative asset manager, has announced that it has raised US$2.8 billion for energy credit investments.
Carlyle Energy Mezzanine Opportunities Fund II (CEMOF II) primarily targets investments in projects and companies in the power generation and energy sectors requiring capital of US$50 million to US$500 million per transaction. The fund is more than twice the size of the previous Carlyle Energy Mezzanine fund raised in 2012.
The fund expects to invest in projects or companies primarily located in the U.S. and Canada.
Started in 2010, the Carlyle Energy Mezzanine Opportunities Fund now manages more than US$4 billion. Current investments include Hilcorp Energy Development, L.P., a partnership with Hilcorp Energy Co., and Shenandoah Petroleum Corp.
CEMOF II was advised by Simpson Thacher & Bartlett LLP.
David Albert, Managing Director and Co-head of the Energy Mezzanine team, said:
“We are grateful for our investors’ continued support. The second fund enables us to undertake larger transactions and fill a market need by providing investment capital to energy companies challenged to obtain capital from traditional sources.”
Rahul Culas, Managing Director and Co-head of the Energy Mezzanine team, said:
“We see opportunities to provide flexible capital as the industry recovers from a period of low commodity prices,” said . “To date we have made 15 investments across multiple energy subsectors, supported by our team of more than 20 investment professionals in New York and Houston.”