Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has agreed to buy Metropolitan Real Estate Equity Management, LLC, a global manager of real estate funds of funds with more than $2.6 billion in capital commitments. Equity for the transaction will come from Carlyle’s balance sheet. Financial terms were not released. The transaction, subject to Metropolitan’s investors’ consent, is expected to close in November 2013.
Jacques Chappuis, Carlyle Managing Director and Head of the Solutions group, said, “Metropolitan is a proven multi-manager in global real estate. 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. David Sherman is a highly respected investor and we are excited to welcome him and the Metropolitan team to Carlyle.”
David Sherman, President and Co-Chief Investment Officer of Metropolitan, said, “Carlyle’s global scope and resources will better enable us to deliver the products and services that our investors demand. This acquisition is a validation of our model and our growth plans.”
Established in 2002 and based in New York City, Metropolitan is one of the largest managers of indirect investments in global real estate. Since inception, Metropolitan has raised more than $2.6 billion across 16 commingled funds of funds with investments in 80+ managers. Its 180+ real estate fund investments include new partnerships, secondary interests and co-investments – in the U.S., Europe, Asia and Latin America.
Metropolitan’s strategy is principally focused on value add/opportunistic real estate investments, and specifically on more than 1,000 highly focused, specialist real estate managers across the globe. The firm has 40 employees with five offices in the U.S., Europe and Asia.
Metropolitan will become part of Carlyle’s Solutions platform, which also includes AlpInvest, the $48 billion private equity fund of funds operation. Metropolitan’s current management team, led by David Sherman, will remain in place. In addition to his role as Co-Chief Investment Officer, Mr. Sherman will also become Head of Real Estate within the Solutions platform. Mr. Sherman and his team will continue to run the investment committee and make all investment decisions.