Carlyle raises €656m for third technology fund

Greg Gille
27 May 2015

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Carlyle has significantly exceeded the target of its Carlyle Europe Technology Partners III (CETP III) fund, closing the vehicle on its €656m hard-cap.

The sector-focused fund was launched in May 2014 with a target in the region of €500m.

The growing targets – and actual amounts raised – by Carlyle's CETP funds highlight the attractiveness of the sector for the GP. The first vehicle in the family, CETP, was closed on just €222m in 2006. Its successor, CETP II, was launched a year later and closed on €522m in 2008.

Carlyle stated its latest fund had benefited from the support of investors in the previous vehicle – with half of the commitments in CETP III being drawn from existing LPs. The majority of investors hail from Europe and the US.

Carlyle was no doubt helped by the string of recent divestments of CETP II portfolio companies. In late April, the GP sold French 3D software developer Metrologic Group to Astorg Partners in an SBO understood to be valued between €200-250m. CETP II had held a 61% stake since 2011.

Just last week Carlyle also sold The Foundry, a UK creative software provider, to HgCapital in a deal that gave the business an enterprise value of £200m. Carlyle had originally acquired the business from Advent Venture Partners in 2011, in a transaction reportedly worth between £75-100m. The company had also agreed a refinancing package with Silicon Valley Bank in order to repay its mezzanine debt at the end of 2014.

Investments
CETP III has already deployed capital across two investments. The vehicle made its maiden investment in July last year, securing a majority stake in Expereo, a Dutch managed network operator.

In early May this year, Carlyle drew capital from the fund to acquire Telvent Global Services, a Spanish information technology company, from Aurelius.

The latest fund will focus on the European telecommunications, media and technology sectors. Carlyle's CETP funds usually target businesses with enterprise values between €25-150m. CETP II's remit was to invest between €20-60m in small- and mid-cap buyouts and expansion capital deals, according to unquote" data.

People
Carlyle's Europe Technology team is based in London. It is headed by managing director Michael Wand and comprises 10 professionals.