US-based private equity giant Carlyle has raised $3.12 billion to invest in 20 to 30 Europe-based companies, amidst a drought in tech startup funding globally.
According to the firm, the bulk of the fund will go towards a majority stake in companies, however, approximately 15% of the fund will be reserved for growth equity deals.
The fund already has two investments: Euro Techno Com Group (ETC), a value-added distributor of telecoms equipment which it sold to Cinven in June, and digital marketing agency Incubeta, which it acquired earlier this month.
In a statement, the firm said the fund called CETP V will be focused on lower mid-market and growth technology companies across Europe.
The fund has already exceeded its €2 billion target in less than a year of fundraising, more than doubling the size of the previous fund CETP IV.
The Group is seeking deals ranging in the €100 million to €500 million range and issuing cheques up to €250 million.
With an average investment horizon of five years, it is targeting areas such as cybersecurity, digital transformation and cleantech, as well as software applications for financial services, healthcare and infrastructure.