Carlyle Group has raised $1.5bn in the initial fundraising round for a new asset-backed finance vehicle, the Carlyle Asset-Backed Income Fund, as the firm continues to expand its credit platform, according to a report by Bloomberg.
The report cites an unnamed source familiar with the matter as revealing that the fund has attracted commitments from a range of institutional investors, including pension funds and sovereign wealth funds. Unlike traditional closed-end credit vehicles, the fund is structured to operate on a perpetual basis, with no fixed maturity.
Among disclosed investors, the Texas County & District Retirement System has committed $150m to the strategy, according to information published on its website.
The launch comes as Carlyle accelerates efforts to diversify beyond its core private equity business, amid a more subdued dealmaking environment for mergers and acquisitions. As part of this push, the firm has been building out its asset-backed finance capabilities, including recent senior hires to strengthen the platform.
Asset-backed lending has seen growing interest from private credit managers in recent years, particularly as traditional banks have retrenched from parts of the market. The strategy focuses on lending against pools of assets or specific collateral, rather than relying primarily on borrower cash flows.
