The Real Deal New York

Carlyle Group raises $4.2B for new real estate fund

Private equity giant will invest in rentals, commercial, retail and warehouses nationwide

September 16, 2015 09:32AM

Rob Stuckey

Rob Stuckey

One of the nation’s biggest players continues to make enormous bets on U.S. real estate.

The Carlyle Group drew in $4.2 billion from investors in its seventh real estate fund, reaching the high end of its target range.

The Washington D.C.-based private equity firm plans to expand an already-massive position in residential and commercial real estate in major markets nationwide.

“I don’t see deal volume slowing down,” Rob Stuckey, the firm’s head of U.S. real estate told Bloomberg. “We see values holding up for core properties and we think that with GDP growth, we still have runway in this cycle.”

Carlyle hopes to make returns of 20 percent before fees on the fund. Its last real estate fund, CRP VI, had a net internal rate of return of 24 percent as of June 30, according to the company’s quarterly report.

The firm owns shares in 18 properties and development sites in New York, according to Real Capital Analytics, including 14 Wall Street in the Financial District. Earlier this week, the firm paid $48 million a three-floor medical condo at the Corinthian in Murray Hill. [Bloomberg]Ariel Stulberg