Carousel Capital, a Charlotte-based private equity firm, said Monday that it had raised $400 million from investors for its fifth and largest investment fund to date.
Carousel completed the fundraising in just over three months and exceeded its target of $300 million. The investors include pension funds, endowments, foundations, insurance companies and a select group of CEOs across the Southeast.
Private equity firms pool money from investors to buy entire companies or investment stakes and then look to make a return by eventually reselling the companies or taking them public.
Carousel said it will continue to focus on buying companies headquartered in the Southeast in three sectors: business services; consumer products and services; and healthcare services.
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Carousel was founded in 1996 by Erskine Bowles, a Charlotte banker and former chief of staff to President Bill Clinton, and Nelson Schwab, a corporate executive who led a buyout of Kings Entertainment Company, former owner of the Carowinds theme park.
Carousel is now led by three managing partners: Charles Grigg, Bill Hobbs and Jason Schmidly. In its 20 years, Carousel has managed capital commitments of about $1.2 billion and invested in 36 companies.
Credit Suisse Securities served as placement agent for Fund V and Latham & Watkins LLP served as legal counsel.