Carlyle Tactical Private Credit Fund is an interval fund that targets consistent profit, so it invests in private loans and other fixed-income assets.
The Global Credit platform of the Carlyle Group is in charge of managing the closed-end investment business.
The Carlyle CTAC fund highlights the value of private credit as a mainstay in diverse investment baskets.
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This post will discuss an overview of the Carlyle Group, the firm behind the investment opportunity, CTAC Private Credit’s features, performance, and other significant information.
What is Carlyle Group?
Carlyle is a global investment company founded in Washington, D.C. in 1987.
Currently, Carlyle oversees 612 financial vehicles and three business units with roughly $447 billion worth of assets.
The business has 29 offices spread over four continents.
Carlyle Tactical Private Credit Fund Overview
The Carlyle Tactical Private Credit Fund (CTAC) was kicked off in June 2018.
As of end-November 2024, the fund managed roughly $5.22 billion worth of assets.
A $10,000 minimum commitment is required for CTAC subscriptions, which are accessible on a daily basis. At least 5% of the Fund’s net assets will be repurchased every quarter.
The asset allocation by strategy includes:
- 35% in direct lending,
- 29% in opportunistic credit,
- 17% in structured credit,
- 15% in liquid credit,
- 4% in real assets credit.
Geographically, 80% of assets are allocated to North America, while 19.2% is spread across South America, Europe, and Australia.
Among the top 10 holdings by industry:
- 12.3% in software
- 6.8% in diversified investment vehicles
- 6.7% in banking, finance, insurance, and real estate
88% of the assets’ interest rates are floating; 12% are fixed.
Carlyle Tactical Private Credit Fund Performance
The CTAC private credit offering logged the following outcomes as per available data as of Jan. 21, 2025:
Carlyle CTAC Fund Class A Shares
- Without sales load
The fund’s monthly, quarterly, and year-to-date returns are 0.61%, and its net asset value is $8.52.
The cumulative gain for the fund’s inception-to-date period is 43.31%; the yearly ITD yield is 5.57%.
The return for the last year is 10.23%, while the annualized return over the last three years is 7.43%.
- With sales load (3%)
In this case, the initial investment in the fund is trimmed by a 3% sales load that is taken out at the outset.
The NAV stays at $8.52 as a result of this deduction, but the impact of the load causes the monthly, quarterly, and year-to-date returns to fall to -2.41%.
The annualized ITD profit is 5.01%, while the cumulative ITD earning is 38.30%.
The three-year annualized return is 6.34%, and the one-year return is 6.92%.
Class I Shares
The NAV is $8.56, slightly higher than the A shares.
The gains from month-, quarter-, and year-to-date all hit 0.64%, indicating steady short-term performance.
Inception-to-date cumulative profit is an impressive 49.06%. This translates into a 6.44% annualized ITD return.
Annualized yield is 7.90% over three years, while one-year profit is 10.69%.
Class L Shares
- Without Sales Load
The fund’s NAV is $8.52, with consistent MTD, QTD, and YTD gains of 0.73%.
With an annualized ITD return of 5.84%, the fund’s cumulative return during the ITD term is 43.78%.
Short-term performance remains strong with an annualized yield of 7.32% over three years and a one-year return of 10.07%.
- With Sales Load (3.5%)
The NAV is also $8.52, but the MTD, QTD, and YTD returns drop to -2.80%.
An annualized ITD payout of 5.25% and a cumulative ITD earning of 38.75% are lower than those of the no-load option.
The annualized return for three years and the return for one year slide to 6.06% and 6.22%, respectively.
Class M Shares
The fund’s net asset value is $8.56.
The MTD, QTD, and YTD returns each stood at 0.59%.
The M shares have grown significantly since their launch, as seen by their remarkable cumulative return of 63.58%. The ITD annualized gain is 11.06%.
The annualized return over three years is 7.12%, and the return over one year is 9.96%.
Class N Shares
The fund has a net asset value of $8.52 and gains of 0.76% on a month-to-date, quarter-to-date, and year-to-date basis.
The fund has recorded a 6.82% annualized ITD return and 46.33% cumulative ITD return.
These shares logged a three-year annualized return of 8.01% and a profit of 10.77% over one year.
Class U Shares
The NAV of the fund is $8.57.
The year-to-date, quarter-to-date, and month-to-date returns all reached 0.71%.
Inception-to-date gains are 25.87% cumulatively and 10.10% yearly.
The fund had a 9.96% return over the last year.
Class Y Shares
The fund’s NAV is $8.52.
It has 0.62% MTD, QTD, and YTD returns.
The annualized ITD return is 6.13%, and the cumulative ITD return is 46.28%.
The fund’s one-year return hit 10.18%, and its three-year annualized return reached 7.60%.
Carlyle CTAC Private Credit Fees
The fund’s managed assets are subject to a management charge of 1%.
Also, after expenses are subtracted, only investment income is subject to a 15% incentive fee.
A 6% performance fee with a 100% catch-up provision will only be assessed if the hurdle rate is reached.
Pros and cons of Carlyle Tactical Private Credit Fund
- The fund has so far had a track record of regular payouts.
- Investors can access the private credit market through CTAC, which often offers greater rates vs public markets.
- However, CTAC could not have as much liquidity as publicly listed funds because it is an interval fund.
- Compared to ordinary investments, private credit investments may be riskier due to their complicated nature, which includes interest rate changes and possible defaults.
- Investors should give serious thought to the fees since they may affect total returns.
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