The Carlyle Group has raised $4.2 billion for Seventh U.S. Real Estate Fund, Carlyle Realty Partners VII.
The D.C. based private equity firm plans to expand its massive position in residential and commercial real estate in major markets nationwide.
In the U.S., Carlyle has completed more than 500 real estate investments across its seven funds, seeking to identify investments that benefit from strong fundamentals across 11 sectors and 30 markets in the U.S.
Carlyle Realty Partners’ six prior funds have been active in both residential and commercial real estate. In residential, the group has invested in a total of 62, 000 housing units, including 42, 000 multifamily apartment units and more than 20, 000 senior living, student housing and for-sale residential units.
In commercial real estate, CRP has invested in approximately 41 million square feet of office, industrial, data center and retail, including investments in the San Francisco Bay Area/Silicon Valley, New York City and Washington, DC markets.
“I don’t see deal volume slowing down, ” Rob Stuckey, the firm’s head of U.S. real estate told Bloomberg. “We see values holding up for core properties and we think that with GDP growth, we still have runway in this cycle.”
Carlyle hopes to make returns of 20 percent before fees on the fund. Its last real estate fund, CRP VI, had a net internal rate of return of 24 percent as of June 30, according to the company’s quarterly report.