T
he Carlyle Group has secured $9 billion for its latest U.S. real estate fund, exceeding the previous amount raised and indicating investor confidence in specific segments of the property market that have shown resilience despite broader uncertainty.
Carlyle's tenth U.S. real estate fund closed with a $1 billion increase from its predecessor, launched in 2021, according to Rob Stuckey, head of U.S. real estate at Carlyle. The firm is shifting focus towards sectors with stronger demand and demographic tailwinds, such as logistics, rental housing, and self-storage, which offer "improving fundamentals" and "compelling entry points."
The fundraising comes amidst commercial real estate market pressures from higher interest rates and valuation resets, particularly in office buildings affected by remote work. However, investor appetite remains strong for subsectors aligned with long-term consumer trends, including e-commerce and suburban migration.
Carlyle's new fund will target outperforming categories, aiming to acquire and reposition assets that can benefit from secular shifts and operational improvements. The $9 billion haul positions Carlyle among the more successful fundraisers in real estate private equity this cycle, amidst a more selective capital-raising environment.
The firm manages over $425 billion globally, including more than $40 billion in real estate across North America, Europe, and Asia. Shares of Carlyle Group rose 1.9% on Monday following news of the fund close.
