The Carlyle Group closed its 10th real estate fund with $9B raised, the investment giant announced Monday, despite what executives called a challenging environment.
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The capital commitment for the fund, Carlyle Realty Partners X, is $1B more than the Washington, D.C.-based investment firm raised for its last opportunistic real estate fund in 2021. The latest fund will concentrate on what have been Carlye’s focus areas of residential, self-storage and industrial assets.
CRP X is expected to have no exposure to the office, hotel or retail sector.
“Our ability to avoid structurally challenged areas and invest with discipline in a turbulent environment reinforces the value of our distinctive approach to fund construction and has led to meaningful recommitment from existing investors as well as strong support from new relationships,” Rob Stuckey, who has led Carlyle’s U.S. real estate team since 1998, said in a statement.
Stuckey described the fundraising landscape as the most difficult he has experienced in recent memory but added that there is a strong case for deploying capital amid the macroeconomic uncertainty.
“This is a compelling moment to invest, as we see improving fundamentals across our target sectors coupled with an environment of relatively constrained liquidity,” he said.
The $9B fund is Carlyle’s largest real estate vehicle to date, Private Equity Insights reported.
Carlyle didn’t respond early Monday to a request for details about the fund and if any of its capital had already been deployed.
The firm had $435B in assets under management at the end of March and has been looking to deploy capital in growth sectors. It is one of several investment giants reportedly in talks with Meta to contribute to a $60B data center fund.
In New York City, Carlyle has refinanced at least four properties this year for a combined $296M. But it also transferred a group of 29 office condos at the United Nations office complex to the mortgage lender, eight years after acquiring the properties for $217M and months after an online auction failed to result in a deal.
Carlyle’s competitors for investment clients — Apollo Global Management, Brookfield Asset Management and Morgan Stanley among them — have also launched real estate funds in 2025. With no shortage of options for capital, a majority of investment firms said they have had trouble raising cash this year.
