The Carlyle Group plans to spin out its Chinese real estate team
The Carlyle Group plans to spin out its China-focused real estate team as investor appetites waned for a property fund dedicated to the country.
The Washington, D.C.-based private equity firm overhauled its Asian unit by creating an integrated platform that invests in its real estate deals alongside other areas of business like buyouts, growth and currency deals.
But months after Carlyle decided to narrow its China focus and parted ways with senior property executives in the Asian group, the firm is spinning off its Chinese real estate team, which is led by Han Chen.
Chen will continue to oversee Carlyle’s managed accounts until they’re sold. arlyle will still invest in Asian real estate through its main buyout fund for the region, Carlyle Asia partners V LP.
The move comes as investors showed lukewarm interest in Carlyle’s real estate-specific China fund.“We discovered a nuance when it comes to investors and traditional funds in the Chinese market,” Brooke Coburn, chief investment office for Carlyle’s real asset group.