Carlyle raises $1.04 bn for Asia growth fund

BANGALORE, INDIA: Global private equity firm The Carlyle Group announced on Tuesday today it has successfully closed its fourth Asian growth capital fund, Carlyle Asia Growth Partners IV (CAGP IV).

This is a sector-agnostic growth capital fund which invests in high growth private companies with strong local management and leading market position in China, India, Korea and other key Asian markets, said a press release.

Despite a difficult fund-raising environment, the fund raised $1.04 billion in only 14 months from a broad geographical range of investors, it said.

Carlyle Asia said the closing of CAGP IV reflects improving investor sentiment towards China and India as the two major economies begin to stabilize and show signs of emerging from the downturn. Nearly 40 per cent of CAGP IV’s limited partners are new investors, demonstrating growing demand for exposure to China and India.

“We are delighted with the support we have received from our investors, especially given challenging industry-wide fund-raising trends,” said Wayne Tsou, managing director and head of Carlyle Asia Growth Partners.

“This is an excellent time for long-term investors to seek value in China and India. Our new fund offers access to high growth opportunities with no leverage, providing attractive risk-adjusted returns.”

According to Tsou, the Chinese domestic consumption story is developing well.

“China’s strong economic performance, successful implementation of its stimulus plan and incentive measures for small and medium-size enterprises are attracting international firms and investors to the Chinese market.”

Carlyle also believes that India’s promising demographic fundamentals, mature capital markets and skilled workforce make it well-positioned for further growth.

"The strong entrepreneurial culture in India has created many potential investment opportunities for Carlyle,” said Shankar Narayanan, a Carlyle managing director responsible for CAGP’s investments in India.

“India’s emerging middle class is fuelling strong domestic consumption, while the outsourcing and re-engineering of various products and services from all over the world to India continues to grow at a lively pace.”

Narayanan said India’s growth story is sustained by its vibrant capital markets, a resilient banking system and a pro-business stable government.