Carlyle Delays Pan-Asia Fund Closure Amid Surging Interest in Japan Investments

Carlyle Group has reportedly postponed the closing date for its new pan-Asia buyout fund, as insider sources suggest the company’s recent Japan-focused fund has garnered more interest from investors.

According to sources familiar with the matter, the Washington D.C.-based firm has requested an extension for the closing of its sixth regional buyout fund. However, due to the confidential nature of the information, the sources declined to be named. Since its launch over two years ago, Carlyle has raised $3 billion for the fund, significantly below the initial target of $8.5 billion. Typically, fundraisers are completed in roughly 18 months or less.

The lengthier fundraising period can be attributed to growing concerns among global investors over paying inflated prices for assets and unclear exit opportunities, which has led to more stringent due diligence.

Insiders indicated that the company's $2.9 billion Japan fund, which closed in May and is roughly 70% larger than its predecessor, has siphoned off resources that might have otherwise gone to the pan-Asia fund. International investors have increasingly prioritized Japan, affecting the pan-Asia fund’s capacity to reach its target. Since last year, Carlyle has raised nearly $6 billion in Asia, including $950 million for its second growth fund.

Carlyle’s spokesperson based in Hong Kong declined to comment.