The Carlyle Group plans to spin out its Chinese real estate team

Move comes as private equity firm refocuses its Asia strategy

New York /
Sep.September 10, 2018 11:15 AM

The Beijing skyline (Credit: iStock)

The Carlyle Group plans to spin out its China-focused real estate team as investor appetites waned for a property fund dedicated to the country, Bloomberg reported.

The Washington, D.C.-based private equity firm overhauled its Asian unit by creating an integrated platform that invests in its real estate deals alongside other areas of business like buyouts, growth and currency deals.

But months after Carlyle decided to narrow its China focus and parted ways with senior property executives in the Asian group, the firm is spinning off its Chinese real estate team, which is led by Han Chen.

Chen will continue to oversee Carlyle’s managed accounts until they’re sold, according to Bloomberg. Carlyle will still invest in Asian real estate through its main buyout fund for the region, Carlyle Asia partners V LP.

The move comes as investors showed lukewarm interest in Carlyle’s real estate-specific China fund.

“We discovered a nuance when it comes to investors and traditional funds in the Chinese market,” Brooke Coburn, chief investment office for Carlyle’s real asset group, told Bloomberg. “Investors want to be more prescriptive on terms including the timing of the exit or pursue either smaller transactions or deals that require shared control.”

The company began raising capital in 2016 for its Carlyle China Realty LP fund, which was targeting $500 million.

The fund had raised some $120 million by mid-2017, but at that point Carlyle stopped looking to raise more money, because the company realized investors were more interested in separately managed accounts as a way to put money to work in Chinese real estate. [Bloomberg] – Rich Bockmann


Related Articles

arrow_forward_ios
(Getty, Photo Illustration by The Real Deal)
Retail had its reckoning. Will subleases flood the market?
Retail had its reckoning. Will subleases flood the market?
Ascena owns Ann Taylor, Lane Bryant, Lou & Grey and Cacique. (Getty)
Ascena restructuring approved post-bankruptcy
Ascena restructuring approved post-bankruptcy
Apollo Global Management will take over craft retailer Michaels in a deal that values the company at $3.3 billion. (Wikipedia Commons, iStock)
Craft retailer Michaels to go private in $5B deal
Craft retailer Michaels to go private in $5B deal
 JLL CEO of capital markets Richard Bloxam and Roofstock CEO Gary Beasley (JLL, Roofstock, iStock)
JLL gets in rental home business
JLL gets in rental home business
Mack-Cali Realty CEO Mahbod Nia and MaryAnne Gilmartin (Photos via Mack-Cali Realty)
Mack-Cali Realty names Mahbod Nia as CEO
Mack-Cali Realty names Mahbod Nia as CEO
The comedy club argues that if SNL can operate, then they should be allowed to operate too. (Getty)
Manhattan comedy club sues Cuomo over pandemic closures
Manhattan comedy club sues Cuomo over pandemic closures
(iStock)
These were Manhattan’s best office submarkets in Q4
These were Manhattan’s best office submarkets in Q4
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Order up: Real estate investors line up to buy drive-throughs
Order up: Real estate investors line up to buy drive-throughs
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...