Washington, DC-based private equity powerhouse The Carlyle Group wants to raise in excess of $500 million for a China-focused real estate fund, according to the firm’s co-chief executive, Bill Conway.
Speaking on Wednesday’s Q1 earnings call, Conway said: “The fund will be consistent with as big as we can make it as well as we think we can put the money to work effectively. I’d be disappointed if it doesn’t get to at least $500 million.”
Carlyle’s other co-chief executive, David Rubenstein, noted that the firm had already been a significant real estate investor in the country via separate accounts.
“And also in addition to the fund we’re raising, we do have some managed accounts, that are significant, which we’re investing in China real estate. And we’ve got a team that’s been there for quite some time. So I’d echo what Bill said that we’re pretty bullish on our ability to raise some fund for the team and we expect to be a significant investor in Chinese real estate for quite some time,” said Rubenstein.
For instance, in 2013 Carlyle teamed up with Korean pension fund manager, National Pension Service of Korea (NPS), on a $500 million vehicle called the Carlyle Asia Real Estate Managed Account China, according to PERE Research & Analytics.