Carlyle Partners with Diversified Energy on $2B Asset-Backed Energy Platform
Carlyle has formed a strategic partnership with Diversified Energy to invest up to $2 billion in proved developed producing (PDP) oil and gas assets across the United States. The new venture will target long-life energy assets with established production profiles and stable cash flow, reflecting growing institutional appetite for yield-oriented energy investments.
Diversified Energy will operate and service the acquired assets, while Carlyle’s Asset-Backed Finance (ABF) group will structure and finance the investments, with plans to securitize the underlying production streams and monetize future cash flows through capital markets execution.
“We are excited to bring institutional capital to high-quality, cash-yielding energy assets that are core to U.S. domestic energy production and energy security,” said Akhil Bansal, Head of Carlyle’s Asset-Backed Finance group.
Diversified Energy, headquartered in Birmingham, Alabama, specializes in natural gas production, transportation, marketing, and well retirement services. “We continue to see a robust pipeline of opportunities and the growing need for operational scale and efficiency,” added Rusty Hutson Jr., CEO of Diversified Energy.
Carlyle’s Asset-Backed Finance business, part of the firm’s Global Credit segment, has deployed approximately $8 billion since 2021 and currently manages $9 billion in assets as of March 31, 2025. The Diversified transaction marks the second major initiative announced by Carlyle’s ABF platform this month.
Earlier in June, Carlyle unveiled a partnership with Citi to jointly pursue asset-backed finance opportunities in the fintech specialty lending space. The collaboration with Citi will leverage the expertise of Citi’s Spread Products Investment in Technologies (SPRINT) team, which focuses on venture equity investments in fintech lenders and emerging lending platforms.
The back-to-back transactions highlight Carlyle’s continued expansion into non-traditional private credit and asset-backed finance strategies, targeting sectors where structural inefficiencies and cash flow predictability create scalable opportunities for institutional capital deployment.