The Carlyle Group (NASDAQ: CG) has begun fundraising for its ninth flagship private equity fund, seeking to raise approximately $15 billion and match the $14.8 billion secured by its predecessor, according to a Bloomberg report citing people familiar with the matter.
The Washington, D.C.-based alternative asset manager outlined the target for Carlyle Partners IX during an investor call last week. The firm aims to complete an initial fundraising close by year-end and is offering investors who commit before then a 15-basis-point reduction in management fees, the report said.
Carlyle also reportedly launched fundraising efforts for a new defense-focused investment fund last week. The vehicle is expected to raise between $2.5 billion and more than $3 billion.
The fundraising campaign comes as private equity firms continue to navigate a challenging environment for asset sales and distributions. Over the past several years, many alternative asset managers have faced difficulty exiting portfolio companies at attractive valuations while institutional investors have increased liquidity demands.
Signs of improvement have begun to emerge in the deal market. Blackstone recently agreed to sell Interplex Datacom for approximately $850 million, while Apollo Global Management completed the sale of Atlemira. Carlyle is also reportedly nearing an agreement to sell Germany-based Flender GmbH for roughly €3 billion ($3.5 billion).
A successful raise for Carlyle Partners IX would signal continued investor appetite for large-scale buyout funds despite ongoing market headwinds across the private equity industry.