The Carlyle Group Closes $500 Million High Yield Fund, CHYP IX; Leveraged Finance Group Now Manages $7 Billion in Assets

Washington, DC - Global private equity firm The Carlyle Group today announced the close of its tenth U.S. high yield fund, Carlyle High Yield Partners IX (CHYP IX), at $500 million. The fund will invest a minimum of 90 percent of its assets in first lien bank loans, a maximum of 10 percent in high yield bonds and second lien loans and utilizes a traditional CDO ("Collateralized Debt Obligation") structure.

With the close of CHYP IX, Carlyle's Leveraged Finance Group will have closed its second CDO in 2006 and its ninth since its inception for a total of $4.0 billion of assets. Linda Pace, Carlyle Managing Director and Leveraged Loan Portfolio Manager, said, "We continue to build upon our experience and expertise in managing leveraged loans and high yield bonds for attractive returns and low defaults. Our ability to source collateral gives us an edge in a competitive landscape."

Carlyle's Leveraged Finance Group now manages $7.3 billion in assets. U.S. High Yield manages CDO's and Carlyle Credit Partners, a credit opportunity fund; Mezzanine manages Carlyle Mezzanine Partners, a middle market direct lending fund; and Distressed manages Carlyle Strategic Partners, a control oriented distressed investment fund. Carlyle Europe Leveraged Finance manages two CDO's in Europe as well as a credit opportunity fund, Carlyle Europe Credit Partners.

With teams in the U.S. and Europe, Carlyle's Leveraged Finance Group is well positioned to capitalize on opportunities in leveraged loans and high yield bonds, mezzanine securities, distressed assets and special situation investments. Michael Zupon, Managing Director and head of the Leveraged Finance Group, said, "The continued high level of M&Amp;A activity has generated a robust new issue market for leveraged loans and high yield bonds. We believe this trend creates unique investment opportunities that will allow us to maximize results for our investors. Our leveraged finance platform is strategically positioned to capitalize on opportunities presented by the current environment."