Carlyle Group, the buyout firm run by David Rubenstein, raised 5.4 billion euros ($7.4 billion) for takeovers in Europe, exceeding its target even as the pace of buyouts slows.
``There remain significant opportunities across the continent.'' Rubenstein said in an e-mailed statement today. However, ``the European market is maturing and the investment environment has become more challenging,'' he said.
Carlyle, which had planned to raise 5 billion euros, and rivals Kohlberg Kravis Roberts & Co. and PAI Partners are amassing their largest European funds as the low-cost loans used to pay for deals dry up. The value of buyouts dropped 80 percent to $20 billion globally in August, data compiled by Bloomberg show, as rising U.S. subprime mortgage defaults disrupted credit markets.
``Investors are looking to invest more in private equity and won't be deterred by short-term difficulties,'' said Nick Arnott, a managing director at London-based Private Equity Intelligence, which tracks the performance of buyout funds. ``We're not seeing any problems so far'' in raising money, he said.
Carlyle's third fund dedicated to takeovers in Europe is three times bigger than the 1.8 billion-euro pool the Washington- based firm raised in 2005. New York-based competitor KKR is seeking 7.7 billion euros for its third European fund, Private Equity Intelligence said last month. Paris-based PAI is gathering 10 billion euros for its Europe V fund.
Private-equity companies raised a record $260 billion for new funds worldwide in the first half of 2007. New York-based Blackstone Group LP pulled in $21.7 billion for the world's biggest fund last month.
Buyout firms use a mix of their own funds and debt to pay for takeovers. They typically seek to expand companies or improve performance before selling them within five years to other funds or investors
``There remain significant opportunities across the continent.'' Rubenstein said in an e-mailed statement today. However, ``the European market is maturing and the investment environment has become more challenging,'' he said.
Carlyle, which had planned to raise 5 billion euros, and rivals Kohlberg Kravis Roberts & Co. and PAI Partners are amassing their largest European funds as the low-cost loans used to pay for deals dry up. The value of buyouts dropped 80 percent to $20 billion globally in August, data compiled by Bloomberg show, as rising U.S. subprime mortgage defaults disrupted credit markets.
``Investors are looking to invest more in private equity and won't be deterred by short-term difficulties,'' said Nick Arnott, a managing director at London-based Private Equity Intelligence, which tracks the performance of buyout funds. ``We're not seeing any problems so far'' in raising money, he said.
Carlyle's third fund dedicated to takeovers in Europe is three times bigger than the 1.8 billion-euro pool the Washington- based firm raised in 2005. New York-based competitor KKR is seeking 7.7 billion euros for its third European fund, Private Equity Intelligence said last month. Paris-based PAI is gathering 10 billion euros for its Europe V fund.
Private-equity companies raised a record $260 billion for new funds worldwide in the first half of 2007. New York-based Blackstone Group LP pulled in $21.7 billion for the world's biggest fund last month.
Buyout firms use a mix of their own funds and debt to pay for takeovers. They typically seek to expand companies or improve performance before selling them within five years to other funds or investors
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