US buy-out house The Carlyle Group has raised $1.1bn for its first financial services fund, Carlyle Global Financial Services Partners (CGFSP). The fund focuses on buying into mid-market and regional companies such as banks, insurance companies, asset managers and financial service providers that need additional capital.
The fund has already made three investments, comprising 30 per cent of its committed capital: Bank of N.T. Butterfield & Son Limited, BankUnited and Boston Private Financial Holdings Inc.
Carlyle co-founder David Rubenstein said, “Olivier and his team have made three promising investments already, which, for a first-time fund, demonstrated to investors along the way that we had assembled a talented group at the right time to capitalise on a range of opportunities in the financial services space.”
Carlyle established its Global Financial Services Group in June 2007. It now has 12 investment professionals, including Randal Quarles, the former Under Secretary of the US Treasury for Domestic Finance.
The final close of Carlyle’s vehicle follows a recent roundtable hosted by the Federal Deposit Insurance Corporation to discuss rules governing private equity funds buying up failed banks.
The FDIC is concerned that funds may buy into banks and dump them soon after, making returns without regard for the state of the institutions and, therefore, their depositors.
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