Carlyle raises $20B for S Fund

Recently, private equity giant The Carlyle Group announced it has successfully raised $20 billion for its Secondary Fund (S Fund).

 

This fundraising also marks a historic high for Carlyle in the private equity secondary market investment sector.

Oversubscribed by $5 Billion, Becoming One of the Largest S Funds Globally

According to the official website, this fundraising was led by Carlyle’s global secondary investment strategy platform, AlpInvest Partners.

 

In reality, the fund’s initial target was $15 billion, but due to exceptionally strong market demand, the final amount far exceeded expectations. With Carlyle’s timely adjustments, it reached $20 billion.

 

As a result, this fund has become one of the largest S funds in global history.

 

It was noted that the fund’s limited partners (LPs) include global pension funds, sovereign wealth funds, insurance companies, university endowments, and other institutional investors.

 

Carlyle’s disclosures also reveal that AlpInvest currently operates five global offices in Amsterdam (Netherlands), New York (USA), London (UK), Hong Kong (China), and Tokyo (Japan). The team totals nearly 300 members, with over 90 dedicated to the secondary market investment team, boasting global and localized investment capabilities.

AlpInvest Acquired by Carlyle 14 Years Ago, Capable of LP, GP, and S Fund Strategies

Public records show that Carlyle Group, founded in 1987, is one of the most influential alternative asset management firms globally. As of June 30, 2025, Carlyle’s assets under management reached $465 billion, ranking it among the top PE firms worldwide.

 

 

Over time, Carlyle’s business has expanded to include four main segments: private equity (PE), real assets (e.g., infrastructure, real estate), global credit, and solutions investments.

 

The star of this fundraising—AlpInvest, Carlyle’s secondary market and fund-of-funds investment platform—was not organically built from scratch but was acquired by Carlyle in 2011.

 

Fourteen years after joining the Carlyle family, AlpInvest has become one of the group’s most important subsidiaries, independently managing nearly $100 billion in assets.

 

Currently, AlpInvest’s investment strategies are categorized into three main types:

 

1. Primary Fund Investments, acting as an LP to invest in new shares of other PE funds. In February this year, AlpInvest led a $2 billion multi-asset continuation fund by Bain Capital, just six months ago;

 

2. Secondary Investments, purchasing existing fund shares or asset packages, i.e., S funds;

 

3. Co-investments, partnering with general partners (GPs) for direct investments in target projects, essentially direct investments aligning with typical PE/VC practices.

 

According to Carlyle’s plans, the newly raised S fund will focus on the second category, secondary market investments.

A ‘Liquidity Revolution’, Blackstone, Ardian, Goldman Sachs, Rothschild, and Others Actively Raising Ammunition

Those who have long followed the primary market are likely aware that, in recent years—especially 2023 and 2024—global venture capital markets, including North America, Western Europe, and the Asia-Pacific region (including India, Southeast Asia, Japan, South Korea, and China), have faced sluggish IPOs, exits, and fundraising.

 

In fact, the global primary market is undergoing a “liquidity revolution.” Carlyle’s $20 billion S fund raise is merely a snapshot of the global private equity industry’s trend toward secondary marketization.

 

With the global IPO market in a slump, exit channels tightening, and geopolitical shifts intensifying, major cross-border PE firms like Blackstone, Ardian, Goldman Sachs, and Rothschild are either establishing or have established S funds.

 

They aim to provide more liquidity for their LPs while creating new deal opportunities for themselves.

 

According to multiple media reports, in January this year, French PE giant Ardian announced that its ninth private equity secondary market fund had raised $30 billion, setting a new global S fund record.

 

Goldman Sachs Asset Management is reportedly raising its Vintage X fund, targeting $14.2 billion, primarily from university endowments and pension funds. This would be Goldman’s largest S fund to date, currently in its closing period with soft commitments secured.

 

Blackstone Group completed a $5 billion S transaction by late 2024, acquiring 125 fund stakes from the New York City pension system, involving over 70 GPs and 750 projects.

 

Apollo Global Management raised $5.4 billion for its S fund in 2025, marking its first independent S fund strategy.

 

The Rothschild family office completed its FASO VI fund raise at €2 billion, reportedly locking in 14 deals.

 

Additionally, firms like Lexington and HarbourVest are also in the closing process, though full amounts remain undisclosed.

$105 Billion Raised This Year, a Near-10-Year High

Based on data disclosed by various institutions in 2025, the global S fund fundraising total for the first three quarters (Q1+Q2+Q3) has reached $105 billion, surpassing the full-year 2024 total of $101.6 billion.

 

Considering Q4 is traditionally a peak closing period, and with about 15 mid-to-large funds currently in the pipeline (targeting a combined $40-50 billion), the 2025 full-year total is likely to exceed $140 billion, potentially growing 35-40% from 2024’s $101.6 billion, setting a new historical high.

 

More optimistically, investment bank Jefferies predicts that 2025’s secondary market transaction volume could hit $185 billion, aligning with fundraising records, with dry powder still exceeding $200 billion.

 

Thus, whether $140 billion or $185 billion, 2025 is poised to be the most active year for private equity secondary market (S fund) fundraising in history, achieving a near-10-year peak.