Carlyle unveils £2.6bn to pump into European technology firms
US asset manager Carlyle has rallied together over €3bn (£2.6bn) for a European fund to help grow mid-market technology firms in the continent.
The fund, called Carlyle European Partners and headed by two former investment bankers, has exceeded its €2.5bn (£2.2bn) target in less than a year of fundraising, the buyout firm told Reuters.
The pair are looking to capitalise on “pockets of life” in the European economy, targeting business-facing tech companies operating in cybersecurity, digital transformation and cleantech, three tech sectors with particularly attractive growth prospects in the current climate.
Demand for tighter cybersecurity has soared since Russia invaded Ukraine earlier this year.
While the push for cleantech, such as renewable energy, electric vehicles, as well as water and energy usage metres, has grown increasingly popular among businesses looking to meet net zero commitments and bypass some of the pain served up by scaling energy costs.
Software applications across the financial services, healthcare and infrastructure industries will also be pursued, according to the London-based co-heads of the fund, Michael Wand and Vladimir Lasocki.
Carlyle is aiming to invest in between 20 to 30 companies, with the goal of acquiring a majority stake in most and working with businesses to upgrade management teams.
Around 15 per cent of the fund with be reserved for growth equity transactions, added Wand and Lasocki.
The fund has already made two investments, in telecoms equipment distributor Euro Techno Com, which was sold to London-based private equity giant Cinven in June, and digital marketing agency Incubeta.