Carlyle announced on 19 October that it had closed its first long-dated private equity fund, Carlyle Global Partners, which will have a 15-year lifespan instead of a typical 10 years.
Carlyle started fundraising for the vehicle in 2014 and has already spent $ 1.1 billion of equity, acquiring stakes in four companies.
Private equity firms typically buy companies and own them for three to five years, but many have been experimenting with new funds that allow them to hold on to assets for longer and deliver lower returns to investors.
Firms including CVC, Apollo and Blackstone have all raised vehicles that can own assets for longer than their traditional private equity funds over the past two years.
Executives say that longer life funds have sprung up as firms seek to adapt to the changing demands of some of their biggest investors who want steady returns amid persistently low interest rates.
William Conway Jr, Carlyle’s co-CEO, said: “Carlyle Global Partners is complementary to and a natural extension of our established global buyout business… The fund is off to a strong start and we see increasing opportunities for CGP’s long-term capital.”