American asset management firm Carlyle Group has agreed to buy real estate fund manager Metropolitan Real Estate Equity Management, which has more than US$2.6 billion in capital commitments.
Established in 2002, Metropolitan primarily provides its services to institutions and high net worth investors. The firm manages private domestic and international real estate funds for its clients.
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Metropolitan’s strategy is principally focused on value add/opportunistic real estate investments, and specifically on more than 1,000 highly focused, specialist real estate managers across the globe. The firm has 40 employees with five offices in the US, Europe and Asia.
Metropolitan will become part of Carlyle’s Solutions platform, which also includes AlpInvest, the $48 billion private equity fund of funds operation.
Metropolitan’s current management team, led by David Sherman, will remain in place. In addition to his role as co-chief investment officer, Sherman will also become head of real estate within the solutions platform.
Sherman and his team will continue to run the investment committee and make all investment decisions.
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By GlobalDataJacques Chappuis, managing director and head of the solutions group at Carlyle, said: "Metropolitan is a proven multi-manager in global real estate. This adds an important capability to our growing Solutions business, strengthens our intellectual capital in global real estate, and immediately contributes to our corporate bottom line. David Sherman is a highly respected investor and we are excited to welcome him and the Metropolitan team to Carlyle."
The transaction, subject to Metropolitan’s investors’ consent, is expected to close in November 2013.
