The Carlyle Group is ramping up its presence in the private equity secondaries market with the launch of new retail-focused funds aimed at affluent individual investors amid growing interest in alternative assets beyond institutional buyers, according to a report by Bloomberg.
The initiative includes the Carlyle AlpInvest Private Markets Secondaries Fund, which has already launched in Luxembourg, with a US version currently pending regulatory approval. These vehicles will allow accredited investors — those earning over $200,000 annually — to buy and sell interests in secondhand private equity funds, historically the domain of large pensions and endowments.
Private equity secondaries have surged in popularity as institutions look to offload stakes amid a sluggish exit environment and ongoing liquidity constraints. Carlyle’s move into the retail secondaries space comes as many traditional investors – including elite university endowments – consider large-scale portfolio sales in response to market headwinds.
UBS is the distribution partner for the strategy, giving its network of high-net-worth clients access to Carlyle’s secondaries exposure. Investors will have the option to redeem up to 5% of their investments quarterly, and the fund will raise new capital on a monthly basis, according to a draft prospectus.
The strategy supports CEO Harvey Schwartz’s broader push to expand Carlyle’s retail investor base. Under his leadership, the firm has rebranded its secondaries arm as Carlyle AlpInvest and has significantly grown its global wealth team, with headcount now exceeding 100.
