Global alternative asset manager The Carlyle Group 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 $2.6bn 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.
Established in 2002 and based in New York City, Metropolitan is one of the largest managers of indirect investments in global real estate.
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.
