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Carlyle closes fifth US fund on $3bn

The private equity real estate arm of private equity giant The Carlyle Group has closed its fifth US-focused property fund on $3bn.

The Carlyle Group has closed its fifth US-focused real estate fund, Carlyle Realty Partners V, on $3 billion (€2.1 billion). The fund will focus on office, hotel, industrial, retail, residential and senior living investments in major markets throughout the US.

“We are disciplined and patient,” Robert Stuckey, head of Carlyle’s US property group, said in a statement. “We are pleased to have available capital in this environment. While the capital markets are experiencing turbulence, we remain focused on sectors and markets in which real estate fundamentals are poised to improve. We are hoping to make investments in instances where the capital markets are under-pricing the fundamental value of the properties that we are trying to buy.”

Carlyle closed its first US real estate fund in 1998 on $471 million. Its most recent US-focused fund closed in $950 million in 2004. The platform focuses on a diversified, opportunistic strategy in markets like New York City, Washington, San Francisco, Southern California and Seattle, according to the firm.

Since August 1997, the firm’s US property platform has invested in real estate with a capitalization value of $15 billion and has a 38 percent IRR on 105 realized investments. In addition to its buyout and venture capital funds, Carlyle also has real estate funds targeting Europe and Asia.