WASHINGTON, DC—Global alternative asset manager Carlyle Group is expanding into the fund-of-funds business with its just-announced acquisition of Metropolitan Real Estate Equity Management LLC. Financial terms of the transaction were not disclosed, but locally based Carlyle intends to fund the purchase through its balance sheet. Subject to Metropolitan's investors' consent, the deal is scheduled to close in November.
Metropolitan will be folded into Carlyle Group's Solutions platform, which also includes AlpInvest, the $48 billion private equity fund of funds operation. Headquartered in New York City, it's one of the largest managers of indirect investments in global real estate. Since its 2002 formation, Metropolitan has raised more than $2.6 billion across 16 commingled funds of funds with investments in over 80 managers.
“Metropolitan is a proven multi-manager in global real estate,” comments Jacques Chappuis, a Carlyle managing director and head of the Solutions group. “This adds an important capability to our growing Solutions business, strengthens our intellectual capital in global real estate, and immediately contributes to our corporate bottom line.”
Metropolitan's current management team, led by president and co-chief investment officer David Sherman, will remain in place. Sherman will retain his role of co-CIO and become head of real estate within the Solutions platform; he and his team will continue to run the investment committee and make all investment decisions.
“Carlyle's global scope and resources will better enable us to deliver the products and services that our investors demand,” stated Sherman. “This acquisition is a validation of our model and our growth plans.”
Metropolitan's primary strategy centers on value add/opportunistic real estate investments—specifically, on more than 1,000 highly focused, specialist real estate managers across the globe. With 40 employees with five offices in the US, Europe and Asia, the firm has more than 180 real estate fund investments including new partnerships, secondary interests and co-investments in the US, Europe, Asia and Latin America.
The Carlyle Group had $180 billion of assets under management across 118 funds and 81 fund-of-funds vehicles as of June 30, 2013. Its investments cover four segments, including corporate private equity, real assets, global market strategies and global solutions, in Africa, Asia, Australia, Europe, the Middle East, North America and South America.
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Sule Aygoren
Aygoren oversees the editorial direction and content for ALM’s Real Estate Media Group, including Real Estate Forum and GlobeSt.com. In her tenure with ALM, she’s held roles of increasing responsibility, including Managing Editor. Aygoren has received several awards for her coverage including Best Trade Magazine Report from the National Association of Real Estate Editors and the James D. Carper Award for Young Journalists. Under her direction, Forum has received four national NAREE awards for Best Commercial Real Estate Trade Magazine.
