Carlyle raises nearly $5bn for latest RE funds – Exclusive

The Carlyle Group has corralled almost $5 billion of commitments for its real estate funds in market, PERE has learned.

The Washington, DC-based alternative investment firm has raised almost $4 billion for Carlyle Realty Partners VIII, PERE understands. The firm is targeting at least $5 billion for the eighth North America-focused opportunistic fund, which it started pre-marketing in Q3 2016, chief executive David Rubenstein said on the firm’s October analyst call.

On Thursday's second-quarter earnings call, Rubenstein said the firm plans to finish fundraising for CRP VIII by the end of the year.

The Florida State Board of Administration committed $100 million to the vehicle in the second quarter, according to a Monday announcement. Other investors in CRP VIII include the Teachers’ Retirement System of the State of Illinois and the Pennsylvania Public School Employees’ Retirement System, which each allocated $200 million, according to PERE data.

Carlyle launched the predecessor fund, CRP VII, in 2013 and closed it in December 2014 on $4.2 billion, at the fund’s hard-cap, PERE previously reported. CRP VII had $2.4 billion invested and a 1.4x investment multiple as of March 31, according to its first-quarter earnings statement. The firm did not disclose gross or net returns for the fund, however. CRP VI, a $2.3 billion, 2010-vintage vehicle, generated a 21 percent net internal rate of return as of the end of the first quarter.

Last quarter, SBA also earmarked $100 million to Carlyle Property Investors, the firm’s open-ended core-plus fund launched last year. The US-focused fund has raised nearly $1 billion, a source told PERE. Other limited partners include the New Hampshire Retirement System, which invested $15 million, according to PERE data.

Bill Conway, Carlyle’s co-CEO, said on the firm’s first-quarter earnings call that Carlyle has been able to draw on the success of its team and track record in the opportunistic real estate space for CPI.

“In terms of the core-plus real estate fund, it’s going to get bigger,” he said on the call. “Exactly how much bigger and how soon, I don’t know.”

Rob Stuckey leads the firm’s US real estate funds.

SBA’s $13.3 billion real estate portfolio returned 12.7 percent in the year ending June 30, 2016, just below its 12.8 percent benchmark, according to its most recent investment report.