The Carlyle Group has agreed to buy Metropolitan Real Estate Equity Management, a manager of real estate funds of funds with more than USD2.6bn 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.
Jacques Chappuis (pictured), Carlyle managing director and head of the solutions group, says: “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, says: “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.”