Private equity and investment titan Carlyle Group, based in the US, has raised $1 billion for its second fund aimed at investing in financial firms, including wealth managers.

The global asset manager Carlyle Group has raised $1 billion (£580 million) for its second fund dedicated to investing in financial companies - including asset and wealth managers.

Other areas of focus will be on insurance, specialty finance, financial technology, depositories and capital markets/business services.

Carlyle Global Financial Services Partners II started raising in 2011 and had hoped for $2 billion but finished $1 billion short, according to media reports.

“We appreciate investors’ continued support of our approach: targeting quality management teams and proven franchises in the mid-market financial services space where our capital, expertise and the Carlyle network can make a real difference,” Oliver Sarkozy, managing director and head of global financial services said in a statement.

Carlyle’s previous financial services fund - the $1.1 billion Carlyle Global Financial Services Partners I - closed in 2010. Notable investments in that fund include Boston Private, BankUnited, OzForex, Bank of Butterfield, Central Pacific Financial, Duff & Phelps, Edgewood Partners Insurance Center, Sandler O’Neill & Partners and TCW.

The Global Financial Services Group is part of the Carlyle’s Corporate Private Equity segment.

The firm has been ramping up its asset and wealth management segments in recent months. In February, for example, it completed its acquisition of Diversified Global Asset Management Corporation, a global manager of hedge funds with some $6.7 billion in managed and advised assets. More recently, the firm hired Jeffrey Holland in New York as managing director and head of the private client group – a new role at the firm.