Corrects to indicate size of initial fund $2.4 billion, not $2.7 billion. Paragraph 3)

By Chibuike Oguh

(Reuters] -Carlyle Group Inc reported Wednesday that $4.6 billion has been raised for its second credit-finance fund. It provides debt financing to businesses, family-owned companies and equity-backed entities.

Carlyle Credit Opportunities Fund II, which exceeded its $3.5 billion target, is now expected to have as much as $6 billion available to it, when taking into consideration its ability to borrow.

Alex Popov (Carlyle’s head for illiquid credit strategy), said that the fund had already spent $3.8 billion in 22 companies across North America, Europe and North America. The fund is almost twice the size of its inaugural fund which received $2.4 billion in investors’ money in 2019, and generated an internal rate of return (IRR), of 15% at the close of 2018.

Popov stated that “We continue to see significant opportunities for transitional capital in the market.”

He said that the fund offers transitional capital to companies for “a major acquisition or expansion into another market or a change in ownership”.

Carlyle’s investments include a 320 million pounds debt financing package to The Caffè Nero Group, a British coffee chain. Along with financing, Carlyle provided additional funding Wells Fargo (NYSE:), Digital Intelligence Systems LLC. A Virgina-based outsource firm to buy Signature Consultants LLC.

Carlyle is looking to strengthen its credit platform which currently had $73 trillion in assets. Carlyle and Fortitude Re reached an agreement last week to manage 50 billion dollars of assets, raise equity financing at $2.1 billion for the reinsurer, as well as fund its equity financing. CBAM is a credit manager that Carlyle will acquire in March. This deal will bring an additional $15 Billion to the company’s assets.