- Carlyle Group raised $9B for its 10th real estate fund, CRP X, marking its largest property vehicle to date and $1B more than its predecessor in 2021.
- The fund will target residential, self-storage, and industrial sectors, avoiding office, hotel, and retail properties amid ongoing market headwinds.
- Carlyle’s focus reflects a broader investor pivot toward resilient asset classes with strong fundamentals and away from structurally challenged sectors like office.
Betting on Stability
Despite a difficult fundraising environment, Carlyle Group has closed its latest opportunistic real estate fund—Carlyle Realty Partners X (CRP X)—with $9B in commitments. The firm attributes the strong investor support to its disciplined investment strategy and focus on high-performing sectors, per Bisnow.
Sector Focus
The Washington, D.C.-based investment giant will use the capital to acquire and develop residential, self-storage, and industrial assets—areas where it already has deep exposure. Notably absent from the fund’s scope are office, hotel, and retail properties, which Carlyle has labeled “structurally challenged.”
This disciplined approach echoes a broader trend in commercial real estate, where investor appetite has sharply declined for traditional office assets due to high vacancy rates and shifting workplace norms.
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A Difficult Fundraising Climate
Rob Stuckey, head of Carlyle’s US real estate division, acknowledged that this was the most challenging fundraising climate in recent memory. Still, he emphasized the firm’s belief in the timing: “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.
Broader Context
Carlyle is not alone in pursuing sector-specific real estate bets. Competitors like Apollo, Brookfield, and Morgan Stanley have all launched funds in 2025, intensifying the competition for institutional capital. Many fund managers have reported difficulties raising money this year due to broader economic uncertainty.
Still, Carlyle’s success signals that investors remain willing to back firms that focus on resilient and growth-oriented sectors.
Looking Ahead
Carlyle has not disclosed whether any capital from CRP X has already been deployed. However, the firm has remained active, refinancing $296M worth of New York City properties this year and exiting several underperforming office assets, including a group of condos at the United Nations complex.
With $435B in total AUM and growing interest in data centers and logistics properties, Carlyle appears poised to lean further into real estate niches that offer long-term upside—and fewer structural risks.
