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.
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