Carlyle Group To Retreat From Chinese Real Estate

The Carlyle Group LP CG plans to phase out its Chinese real estate team by the end of this year, per a Bloomberg report. The company, which has been trying to revamp its Asian Unit, has decided to shift its focus from the Chinese real estate market due to decline in investors' interest for country-specific funds.

Notably, the company made key changes in its executive leadership team in 2017, which came into effect on January 1. Since then, the newly constituted team has been making moves to reconsider and improve the company's strategy.

Initially, the team was focused on investing in China's real estate market. However, Carlyle noted that there was significant demand for separately-managed accounts for investing in Chinese real estate, instead of its China-specific real estate investments. Therefore, the team decided to retreat from investing in the country's real estate market.

Brooke Coburn, deputy chief investment officer of Carlyle's real assets segment, stated, "We discovered a nuance when it comes to investors and traditional funds in the Chinese market. Investors want to be more prescriptive on terms including the timing of the exit or pursue either smaller transactions or deals that require shared control."

Subsequent to the phase out, the company will invest in Asia's real estate market through Carlyle Asia Partners V LP — its primary fund for investing in this market.

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