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Carlyle raises €3 billion for European technology fund

Written by Wed 30 Nov 2022

US-based private equity company Carlyle Group has reportedly raised more than €3 billion to be invested in lower mid-market and growth technology businesses in Europe through a European technology fund, according to a Reuters report.

The fund called CETP V is said to seek out “pockets of life” found in the economy according to the co-heads of Carlyle Europe Technology Partners. In less than a year, the €2.5 billion fundraising target was reached, with this fund being more than twice the size of the last CETP IV fund.

Many European technology startups will welcome the timing of this fund, as gaining funding for tech start-ups has become increasingly challenging in recent months. Business-to-business tech firms in Europe may also be supported by Carlyle to expand into international markets.

Around 20 to 30 businesses in Europe will be invested in through the fund, with most of the funding being assigned to firms where a majority stake can be achieved. Around 15% of the fund will be given in growth equity deals.

So far, the CETP V fund has made two investments that meet its guidelines. First, a telecoms equipment distributor called Euro Techno Com Group (ETC) was invested in, that was sold this June to Cinven, with Carlyle rolling a minority stake into its new fund. Secondly, a digital marketing agency called Incubate was bought this November.

Equity investments of up to €250 million will be made in each firm, with deals ranging from €100 million to €500 million in terms of enterprise value. According to Reuters, the average investment time of five years is targeted, with firms in sectors such as cyber security, digital transformation, cleantech being focused on for investment.

Written by Wed 30 Nov 2022

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