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Carlyle and KKR make record $15.6bn pay-outs to investors over past 18 months

Two of the largest US private equity firms have made record cash distributions to their investors over the last 18 months worth a combined $15.6bn. Carlyle accounts for $6.6bn and KKR some $9bn, according to the Financial Times.

The figures demonstrate both the strength of exit markets over the period and the quantum of capital being invested by the large private equity groups. An improvement in public markets has allowed private equity firms to IPO some of their portfolio companies as well as encouraging the re-emergence of trade buyers.

Just as important, however, has been the volume of secondary buy-out activity - private equity firms buying and selling to one another - and the availability of cheap credit enabling profitable recapitalisations of investments.

Bill Conway, Carlyle's founder and chief investment officer, said: 'It's the best 18 months we ever had. We made money and we made it fast.'

Carlyle and KKR are both in the process of raising new funds, efforts which will be significantly assisted by their ability to send cheques back to their existing investors. Carlyle is firmly on course to raise close to E2bn for a new European fund, while KKR is about to launch its second European vehicle with a target of about E3.5bn.

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