Carlyle Eyeing Opportunities in 3 Asset Classes Following $9B Fundraising
Carlyle has closed another U.S. opportunistic real estate fund, known as CRP X, raising $9 billion, which will target multiple asset classes.
The pool is focusing on markets with favorable supply and demand, demographics and technological elements. Asset classes of interest include residential, industrial and self-storage.
Meanwhile, Carlyle said that the following sectors are expected to be avoided under CRP X: hotel, retail and office.
Rob Stuckey, head of Carlyle’s U.S. real estate team, referred to the current landscape of fundraising for CRE as "one of the most difficult in recent memory." While navigating the headwinds, he credited his team's strategy and experience for successfully raising the capital.
"Our ability to avoid structurally challenged areas and invest with discipline in a turbulent environment reinforces the value of our distinctive approach to fund construction and has led to meaningful recommitment from existing investors as well as strong support from new relationships," Stuckey said in a statement.
"This is a compelling moment to invest, as we see improving fundamentals across our target sectors coupled with an environment of relatively constrained liquidity."
The firm's U.S. real estate team consists of 140 professionals, with senior members bringing an average of two decades of experience to the table. Stuckey has led the group since 1998.
This marks Carlyle's 10th opportunistic fund. Under the previous one, CRP IX, it snagged $8 billion in commitments during 2021. As part of Carlyle's strategy in the recent past, it has opted to stay away from the office, hotel and retail segments.
With economic uncertainties and elevated interest rates playing a factor — CRE fundraising has suffered overall. A recent survey from investment management platform vendor Agora found that top firms saw a 7.7% year-over-year decline in capital raising.
Source: GlobeSt/ALM