Carlyle Strategic Partners IV closes at $2.5 billion

Carlyle Group closed its fourth distressed and special situations fund, Carlyle Strategic Partners IV at about $2.5 billion, the fund's hard cap, spokeswoman Elizabeth Gill said.

The new fund is 257% larger than Carlyle's previous fund, the $700 million Carlyle Strategic Partners Fund III, which closed in 2013.

The fourth fund took about a year to raise, said sources close to the firm.

The fund invests in debt and equity of distressed companies in the U.S., Europe and Asia.

Investors include the $311.7 billion California Public Employees' Retirement System, Sacramento, and the $82.7 billion Minnesota State Board of Investment, St. Paul.