The Carlyle Group has produced strong success in its second quarter fundraising for real estate investments, according to its earning report. The $3.4 billion fetched out of the total $12.4 billion was 17 times higher than the $0.2 billion Carlyle raised in Q1 of 2024. It was up even more from the $0.1 billion in the same quarter of 2023.
The amount of invested capital in real estate was $0.3 billion, the same as the year before and up from Q1's $0.2 billion.
A strong contributor to the real estate fundraising results was "strong inflows into our U.S. real estate business," according to CEO Harvey Schwartz's remarks during the company's latest earnings call.
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"In terms of our latest real estate fund, we closed on an amount materially higher than what we disclosed in our earnings release, and we are progressing quickly to a final close," CFO John Redett added. "In a challenging real estate market, it's worth noting the exceptional performance of our franchise, which remains a key area of growth." He expected to see "continued strength" in the area. The company is expecting "flattish" fee growth, although it showed "some real strength" on the real estate side.
Out of $164 billion in total assets under management, real estate accounted for $31 billion. That puts Carlyle at the 11th rank on PERE's top 100 largest managers in private real estate.
According to PERE, Carlyle is working on its tenth opportunity fund, called Carlyle Realty Partners X, with an $8 billion target and a $10 billion hard cap. If Carlyle makes its target, this real estate fund would be the largest of the year, "beating out Blue Owl's $5.16 billion Blue Owl Real Estate Capital Fund VI by a considerable margin."
A recently announced sale of U.S. independent power producer Cogentrix brings in about another $3 billion in the third quarter. The buyer is Quantum Capital Group and affiliates. Cogentrix includes 5.3 gigawatts of natural gas-fired power plants located throughout the located throughout PJM, ERCOT, and ISO-NE regions.
In prepared remarks, Pooja Goyal, chief investment officer of global infrastructure at Carlyle, said that the company will continue investment activities in the energy and infrastructure area, "including partnering with our management teams on growth opportunities and deploying capital in new investments."
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