Carlyle Group (CG) is planning a new credit vehicle internally called "Project Potomac," that would seed a new buyout fund and also pay back money to some investors in the firm's older private equity funds, Bloomberg reported Tuesday, citing people with knowledge of the matter.
The size and structure of the credit vehicle are still being considered, but the financing could be bigger than any similar product on record, the people said, according to the news agency.
The financing would be set up with a combination of senior debt, preferred shares, and common equity, with Carlyle retaining a significant minority stake in the latter on its books, Bloomberg reported.
Investors in older funds will transfer their holdings into a new vehicle that would provides them with equity and some cash, and which would invest in the new buyout fund, according to the report
Carlyle Group did not immediately respond to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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