CPG Carlyle acquires stake in a Carlyle co-investment fund

CPG Carlyle Private Equity Fund, the closed-end fund targeting high net worth investors to invest predominantly in funds sponsored by The Carlyle Group, has made new acquisitions on the secondaries market.

In the second quarter, the fund, which is managed by New York-based Central Park Group, bought a $79,500 stake in Carlyle Global Financial Services Partners II Coinvestment, according to a regulatory filing with the Securities and Exchange Commission. The seller as well as the purchase price were undisclosed.

The fund invests alongside Carlyle Global Financial Services Partners II, which closed in 2011 and invests in management buyouts, growth capital opportunities and strategic minority investments in financial services firms globally. Some of the most recent portfolio companies in that fund include credit rating agency DBRS and third-party fund administrator Conifer Financial Services.

It has also increased its exposure to Carlyle Partners V, from $99 million to $127 million, while it reduced its exposure to Carlyle Partners IV, from $1.3 million to $368,660.

CPG Carlyle also purchased a $3.3 million primary stake in Carlyle Europe Technology Partners III. Carlyle Europe Technology Partners III closed in May with €656 million to invest in emerging European telecommunications, media and technology companies and other companies that offer growth opportunities through ground breaking, innovative technologies and intellectual property.

New York-based Central Park Group is the investment adviser for CPG Carlyle Private Equity, which makes co-investments and primary investments, as well as secondaries investments in funds sponsored by Carlyle and its affiliates. It also makes direct investments in operating companies sponsored by Carlyle.

Total investments in CPG Carlyle Private Equity Fund were about $632 million as of 30 June, up from $590 million as of 31 March. About 66 percent of the fund, or $390 million, was in secondaries investments as of 30 June, down from 70 percent, or $383 million, as of 31 March.

Nearly 25 percent of the fund, or $173 million, was invested in money market funds as of 30 June, up from 24 percent, or $151 million, as of 31 March. Short-term investments help facilitate redemptions but also reduce returns.

Central Park Group was founded in 2006 by Gregory Brousseau and Mitchell Tanzman.

CGP Carlyle Private Equity Fund targets accredited high net worth individual and requires a minimum initial investment of $50,000 to access the vehicle, much lower than the $5 million minimum investment that typical private equity funds require.