CPG Carlyle Private Equity Fund, which was formed in 2012 as a closed-end fund targeting high net worth investors to invest predominantly in funds sponsored by The Carlyle Group, has made new acquisitions on the secondary market.
CPG Carlyle Private Equity Fund has picked up a $5 million stake in Carlyle Asia Growth Partners III and a $944,000 stake in Carlyle/Riverstone Global Energy and Power Fund II, as of 31 March, according to a Securities and Exchange Commission regulatory filing dated 9 June.
It has also increased its exposure to some existing investments including Carlyle Asia Growth Partners IV, Carlyle Asia Partners II and Carlyle Partners V, which owns portfolio company Axalta Coating Systems.
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 secondary investments in funds sponsored by Carlyle and its affiliates. It also makes direct investments in operating companies sponsored by Carlyle.
In the second half of 2014, CGP Carlyle Private Equity Fund began acquiring stakes in a couple of non-Carlyle funds.
It has a $32 million exposure to Newport Global Opportunities Fund, a $500 million global distressed debt fund, credit opportunities hedge fund and credit-related separate accounts. It also owns a $9 million stake in Riverstone Global Energy and Power Fund V, a $7.7 billion fund that energy private equity firm Riverstone Holdings closed two years ago after ending its joint venture relationship with Carlyle.
Total investments in CGP Carlyle Private Equity Fund were about $590 million as of 31 March, up from $548 million as of 31 December. About 70 percent of the fund, or $383 million, was in secondaries investments as of 31 March, up from 58 percent, or $280 million as of 31 December.
Meanwhile, more than 24 percent, or $151 million, was invested in short-term investments comprising money market funds as of 31 March, down from 40.6 percent, or $224 million, as of 31 December. Short-term investments help facilitate redemptions but also reduce returns.
Central Park Group, which was founded in 2006 by Gregory Brousseau and Mitchell Tanzman, declined to comment. Carlyle also declined to comment.
CGP Carlyle Private Equity Fund, also called a feeder 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.