Carlyle Group has completed the world's largest corporate buyout capital-raising at $10 billion to finance mega-sized deals on both sides of the Atlantic.
The private equity group's latest capital-raising was through two funds - the US-focused Carlyle Partners IV got $7.85 billion of commitments, and European fund Carlyle Europe Partners II received $2.2 billion of commitments.
The massive fundraising comes amid press reports that private equity firms Warburg Pincus and Blackstone also are looking to raise up to $8 billion each.
With equity returns in public markets essentially flat for most of last year and bond yields at low levels, investors have been flocking to private equity and other alternative investments to boost returns.
Carlyle invests in buyouts, venture capital, real estate and leveraged finance in the US, Europe and Asia in industries ranging from aerospace and transport to energy, telecommunications and healthcare.
Carlyle Partners III, the group's previous US-focused fund, returned over 127 per cent of capital to investors and still holds a large portfolio of investments, a spokeswoman for the group said.
Carlyle said last month it had returned $5.3 billion to investors in 2004, compared with $2.3 billion in 2003. The firm also raised $7.8 billion last year, up from $2 billion a year ago, and invested $2.7 billion, up $100 million on 2003.