Private-equity firm Carlyle Group has reduced charges and used other unusual incentives to pull investments into its new $2.3 billion real-estate fund, The Wall Street Journal reports. The fund, which is Carlyle’s sixth U.S. real-estate fund, is about to close.
The fact that Carlyle had to adopt an aggressive sales strategy indicates the disinclination of big pension funds to invest in higher-return, higher-risk real-estate funds after facing losses during the financial turmoil. Carlyle, which is readying for an IPO, has $12 billion in real-estate assets which is approximately 8 percent of its total assets under management.
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