Carlyle Group, a Washington-based private equity firm, is preparing to launch a US$4 billion real estate fund.
If successful, the fund would be one of the largest new property funds any firm has raised since the financial crisis, the Wall Street Journal said.
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Carlyle is seeking to capitalize on demand for real estate as 10-year Treasury bonds hover around a 2.2% yield. Late last month, the firm and its partners reached an agreement to sell the 27-story Manhattan office building at 650 Madison Ave. for US$1.3 billion, nearly US$500 million more than the firm spent buying and fixing up the property.
Rivals Blackstone Group, TPG Capital Management and KKR & Co already have funds to tap into the real estate market. Blackstone has more than US$54 billion of property assets under management.
"We believed in the inherent value of the investments we were making despite the noise in the market," Robert Stuckey, head of Carlyle’s US real estate group, told the Wall Street Journal. He declined to discuss the new fundraising.
Carlyle, which has about US$176 billion in assets under management, raised US$2.3 billion for its previous US real-estate fund.
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