Washington DC-based The Carlyle Group included news of the final closing of its second Asia opportunity fund in its 2009 annual report, published last month.
Mention of the $485 million closing was released amid a list of nine other Carlyle private equity and buyout funds to close last year – a lower profile approach to releasing news of a fund close as compared with previous real estate vehicles.
Indeed, when Carlyle closed on $411 million for its Carlyle Asia Real Estate Partners I fund in August 2005, the closing received its own standalone announcement. A further difference between the treatment of the two funds was that LPs were more receptive to making fund investments in 2005 than since 2008, when fundraising for its successor began.
The firm declined to discuss capital raising matters when approached. However, PERE learned last year that it would unlikely reach its target and had already been informed by some investors that their capital commitments would be postponed or cancelled.
According to a source with knowledge of the matter, Carlyle’s Asia Real Estate Partners II (CAREP II) had almost $800 million in commitments at one stage, however this figure had fallen to approximately $600 million by the end of last summer. Its final closing was scheduled for last September, although news of the final closing came in last month’s 2009 annual report.
CAREP II was launched in 2008 following the firm’s debut Asia fund, Carlyle Real Estate Partners, which closed on $411 million and is now fully invested in Japan and China.
CAREP II has already made two investments in Japan. It teamed up with National Pension Service of Korea to buy the KDX Toyosu Grandsquare office million and has invested in a five-asset strong senior housing portfolio operated by Tokyo Marine Nichido, both in Tokyo.