Key Takeaways
- • Carlyle Group and SEI Investments launched the SEI Carlyle Private Markets Fund, the first product to emerge from a partnership the two firms announced in April, according to Bloomberg.
- • The fund will invest across private equity, secondaries, private credit, real estate and collateralized loan obligations, with a 0.75% management fee and a $1,000 minimum investment.
- • SEI will oversee portfolio construction, asset allocation and management of the vehicle, while Carlyle, with $478.5 billion in AUM at the end of Q3, will manage, sponsor and advise on its own strategies within the fund.
- • The fund is a closed-end vehicle with ticker PRVTX and may allocate up to 20% to liquid assets such as stocks and bonds.
- • The launch reflects alternative managers' push into wealth channels as institutional investors remain constrained in new fund commitments and private credit faces redemption pressure.
Summary
Carlyle Group Inc. is launching a private markets fund with SEI Investments Co. aimed at wealthy individuals, according to Bloomberg. The SEI Carlyle Private Markets Fund is the first product from a partnership the firms announced in April. The companies said Tuesday that the fund will invest across private equity, secondaries, private credit, real estate and collateralized loan obligations. It carries a management fee of 0.75% and is open to investors with a minimum investment of $1,000.
The launch comes as Wall Street's private markets managers have shifted attention to individual investors, since institutional backers that traditionally funded their vehicles remain constrained in how much they can allocate to new funds. Firms have been partnering with traditional asset managers with recognizable retail brands to reach ordinary savers. Bloomberg cited a recent tie-up between Blackstone, Vanguard Group and Wellington Management introducing private markets funds for the masses.
Roles are divided between the partners. Carlyle, which reported $478.5 billion of AUM at the end of the third quarter, will manage, sponsor and advise on its own strategies in the fund. SEI will oversee portfolio construction and asset allocation and manage the vehicle. SEI, a provider of technology, fund administration and investment services, had roughly $1.4 trillion of assets under administration and more than $600 billion of assets under management at the end of September. The company has sought to expand its asset management arm over the past year. Robert Hum, head of investment product and commercialization at SEI, said in an emailed statement that the launch is an important milestone in broadening access to institutional investment capabilities.
The backdrop is challenging. Private credit funds have been hit by a wave of redemption requests, and private equity has struggled with fewer deal exits and a difficult fundraising environment. As part of its push for wealthy individuals, Carlyle recently hired two senior executives focused on family offices and tapped Bill Ryan to oversee retirement solutions. The closed-end vehicle trades under ticker PRVTX and may invest up to 20% in liquid assets including stocks and bonds.
The launch comes as Wall Street's private markets managers have shifted attention to individual investors, since institutional backers that traditionally funded their vehicles remain constrained in how much they can allocate to new funds. Firms have been partnering with traditional asset managers with recognizable retail brands to reach ordinary savers. Bloomberg cited a recent tie-up between Blackstone, Vanguard Group and Wellington Management introducing private markets funds for the masses.
Roles are divided between the partners. Carlyle, which reported $478.5 billion of AUM at the end of the third quarter, will manage, sponsor and advise on its own strategies in the fund. SEI will oversee portfolio construction and asset allocation and manage the vehicle. SEI, a provider of technology, fund administration and investment services, had roughly $1.4 trillion of assets under administration and more than $600 billion of assets under management at the end of September. The company has sought to expand its asset management arm over the past year. Robert Hum, head of investment product and commercialization at SEI, said in an emailed statement that the launch is an important milestone in broadening access to institutional investment capabilities.
The backdrop is challenging. Private credit funds have been hit by a wave of redemption requests, and private equity has struggled with fewer deal exits and a difficult fundraising environment. As part of its push for wealthy individuals, Carlyle recently hired two senior executives focused on family offices and tapped Bill Ryan to oversee retirement solutions. The closed-end vehicle trades under ticker PRVTX and may invest up to 20% in liquid assets including stocks and bonds.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.