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Thursday, April 13, 2023

Carlyle Seeks $2 Billion for Excessive-Yield Infrastructure Debt Fund

(Bloomberg)—Carlyle Group Inc. is trying to increase about $2 billion for a fund that may concentrate on high-yield non-public debt for infrastructure initiatives, in response to individuals accustomed to the matter, as various lenders look outdoors of their conventional domains to different asset courses.

The Carlyle Infrastructure Credit score Fund II is about to spend money on the senior and junior debt items of straight originated financings for initiatives primarily in vitality transition alternatives. That features sectors akin to renewable vitality, digital infrastructure and social infrastructure, mentioned the individuals, who declined to be recognized as the main points are non-public. The funds will even goal infrastructure belongings outdoors of vitality transition.

World Head of Carlyle Infrastructure Credit score Erik Savi and Deputy World Head of Carlyle Infrastructure Credit score Manish Taneja are amongst these concerned within the advertising and marketing efforts, the individuals mentioned.

A Carlyle consultant declined to remark.

Infrastructure initiatives have lengthy been considered one of various lenders’ most popular investments, in response to an Ellington Administration Group report seen by Bloomberg, which discusses alternatives in business actual property. Infrastructure initiatives, akin to airport constructions, utilities or roads, are usually extra cashflow-stable and fewer risky than different asset courses.

Carlyle raised a previous model of the fund in 2020 however for only a fraction of this newest spherical: round $600 million, an individual mentioned. On this spherical, the Washington, D.C.-based agency is telling traders the fund will goal internet returns of 9% in unlevered offers, rising to a spread of 10% to 12% for levered transactions, the individuals mentioned. Carlyle is advertising and marketing its newest model of the infrastructure fund as a approach to assist institutional traders akin to pension funds and insurance coverage corporations scale back publicity within the forthcoming anticipated recession.

Carlyle Group is a world asset supervisor investing throughout credit score, actual property and personal fairness, and has been concerned in massive infrastructure initiatives such because the New Terminal One at JFK airport in New York.

–With help from Daybreak Lim.

To contact the reporter on this story: Carmen Arroyo in New York at [email protected]

To contact the editors liable for this story: Nina Trentmann at [email protected]

Andrew Kostic, Allan Lopez.

© 2023 Bloomberg L.P.

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