Carlyle Realty Partners Raises $9B: Inside the CRP X Investment Pitch

Carlyle Realty Partners just raised $9B in a brutal fundraising environment. Here's the IC presentation that led to $200M of the $9B:

----- Carlyle Realty Partners X -----

CRPTF recommended commitment: up to $200 million

1. Fund Snapshot

-- Vehicle & size: CRP X, 10‑year U.S. opportunistic fund targeting $8 bn (soft‑cap $10 bn)
-- Return target: 14‑17 % net IRR / 1.4‑1.5× net TVPI
-- GP commit: ≥ 3 % (~$150 m) alongside LPs
-- Terms: 1.50 % fee on committed/peak capital; 20 % carry over 9 % pref (modified American waterfall)
-- Strategy: Resi, self‑storage & industrial themes; portfolio to exceed 300 assets
-- Edge: > 85 % capital deployed off‑market via OP network
-- CT fit: Builds Non‑Core exposure (currently 6.6 % vs 10 % target)

2 . Investment Rationale & Strengths

-- 27-MD senior team with 25 yrs avg real estate experience, 18 yrs at Carlyle, delivering 17.5 % gross / 11.9 % net IRR since 1997; 6 of 8 mature funds are above median on benchmarks.
-- CRP Series – Net Performance vs Peers (as of Sep 2023)
-- Performance is driven by housing-adjacent and IOS themes, $25–100 m deal sizes, and unlevered underwriting. The portfolio is diversified by sector and MSA, supported by Carlyle’s data platform and co-investment capacity.

3. Hot-Button Positives

-- ESG/DEI – UN PRI signatory; 43 % women / 42 % minorities firmwide; 64 % diverse U.S. hires in 2023
-- Fee breaks – Size-/early-close discounts included
-- Governance – CT stake < 3 % of fund; within policy limits

4. Key Risks & Mitigants

-- Waterfall – No escrow; claw-back risk. Mitigant: 45 % of carry held by RE team; whole-fund claw-back.
-- Key-person – Trigger requires two departures; Head of RE alone not covered. Mitigant: 27-MD bench, long-tenured.
-- Platform growth – AUM up 64 % since 2017. Mitigant: Investment headcount up 28 %; team retains 45 % carry pool.
-- Development cost risk – Inflation and financing may compress returns. Mitigant: “Simple” projects, ≤ 60 % LTV, unlevered focus.

5. Decision Lens

-- CRP X offers scaled, theme-driven exposure to resilient sectors via a seasoned, cycle-tested team. Structural risks are seen as manageable relative to the fund’s return potential and CT portfolio needs.

[Note: Tomorrow we'll post the ChatGPT prompt that generated the summary above. Great way to leverage AI to catch up on investment rationale.]

PS -- Want to improve your ability to follow the dollars? DM us to explore joining our upcoming FastTrack cohort.