The Real Deal New York

Carlyle seeks $5B for new US real estate fund

Private equity firm is active in NYC development
January 11, 2017 12:06PM

50 West 30th Street rendering, David Rubenstein, Daniel D’Aniello and William Conway (credit: the NOMA and the Carlyle Group)

The Carlyle Group is looking to raise $5 billion for its eighth real estate fund in the first half of the year.

The private equity firm, an active player in the New York real estate market, most recently raised $4.2 billion for its seventh real estate fund in 2015.

Carlyle recently parted ways with HFZ Capital Group at the condominium development 505 West 19th Street, buying unsold units from its former partner. Last month, the company sold its stake in the Brooklyn Hilton development to former partner Flank for $88 million.

Carlyle is also partnering with Alchemy Properties on two ground-up residential developments, among other projects.

The new fund is part of Carlyle’s effort to raise $100 billion across its fund over the coming years. The firm, founded by Bill Conway, David Rubenstein and Dan D’Aniello, has $169 billion in assets under management. At the end of September, its real estate division managed $13 billion in assets.

A recent report by research firm Preqin found that an increasing share of investor capital is flowing to larger fund managers, at the expense of their smaller peers.  [Bloomberg]Konrad Putzier