(Bloomberg) -- At a time when KKR & Co. and Blackstone Group LP are finding ways to lock up client money for longer, Carlyle Group LP's David Rubenstein doesn't seem to be in a rush to do the same.
The private equity behemoth, where co-founder Rubenstein is the chief fundraiser, can revisit investor wallets with relative ease, he said Tuesday.
“We have a pretty good ability to get capital when we need it and we really haven't struggled to raise capital in any recent time,” Rubenstein told investors and analysts while discussing third-quarter results. “We are always looking at different permutations of how you can raise capital, but I'd say right now the model that we have is one that we're reasonably comfortable with.”
Long-dated and permanent-capital vehicles can reduce the frequency of fundraising, permit longer investments in assets worth holding on to, and generate more predictable fees. Carlyle does have a longer-life private equity fund, championed by co-CEO designate Kewsong Lee. The pool is doing “quite well” and will likely have a larger successor fund, Rubenstein said.
But the appeal to Carlyle doesn't seem to be as great as, say, at KKR, where a new pair of long-term investor agreements was the centerpiece of the firm's earnings call last week. The partnerships secured $7 billion in fresh capital.
“When you have a reputation as we do, and as other peers that we compete with do, and you go out and raise a successor buyout fund, while you have to go out and raise it, it's -- I won't call it permanent capital -- but it's very likely you can raise these funds for quite some time into the future,” said Rubenstein.
To contact the reporter on this story: Melissa Mittelman in New York at mmittelman@bloomberg.net.
To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Devin Banerjee, Michael Hytha
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