UPDATE 1-Carlyle to buy software developer OpenLink

* Deal partly funded through debt; mostly equity

* Investment made from Carlyle's $13.7 bln buyout fund

By Megan Davies

NEW YORK, Nov 9 (Reuters) - Private equity firm Carlyle [CYL.UL] said on Monday it struck a deal to buy software developer OpenLink Financial from TA Associates, also a private equity firm.

Carlyle didn't disclose terms of the deal, but said the investment is being made from its $13.7 billion U.S. buyout fund, called Carlyle Partners V.

Private equity deals have been picking up in the past few months as the credit markets show signs of improvement.

The OpenLink deal is made up of a combination of debt and equity, with the largest proportion being equity.

"The company is a growing company; our equity investment is substantial into the company and represents the majority of the capital structure," Cam Dyer, principal in Carlyle's U.S. Technology Buyouts group, told Reuters. "So we weren't seeking to maximize leverage here, but we did take on some debt as part of the transaction."

Deal financing was arranged by Bank of America Securities and Credit Suisse Securities.