Carlyle Said to Target $5 Billion for New U.S. Real Estate Fund

Carlyle Group LP is preparing to raise an eighth U.S. real estate fund in the first half of 2017, people with knowledge of the matter said.

The Washington-based private equity firm is planning to target $5 billion for the pool, said the people, who asked not to be identified because the information is private.

A representative of Carlyle declined to comment.

Carlyle closed its most recent North American real estate fund, Carlyle Realty Partners VII, in 2015, securing $4.2 billion in commitments. That fund was almost double the size of its prior fund, Carlyle Realty Partners VI, which was generating a net internal rate of return of 22 percent as of Sept. 30, according to the company’s third-quarter report.

The eighth investment pool would be part of the firm’s plan to raise $100 billion over the next four years as it seeks to replenish buyout and real estate funds that have approached the end of their investment periods. The private equity firm, led by founders Bill Conway, David Rubenstein and Dan D’Aniello, manages about $169 billion.

As of Sept. 30, Carlyle’s global real estate team managed $13 billion in assets across nine active funds, according to the firm’s website. Carlyle’s U.S. real estate funds are led by Robert Stuckey.

The firm is focused on real estate investments such as senior living and rental properties that will benefit from demographic tailwinds, Conway said on the firm’s third-quarter conference call, namely an aging population and fewer homeowners.

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