UK – Carlyle Group is to buy Metropolitan Real Estate Equity Management in an effort to expand its Solutions business, the company has announced.
Although no price was disclosed, Carlyle said the equity to fund the transaction would come from its balance sheet.
Metropolitan, with $2.6bn (€1.9bn) in capital commitments, maintains five offices globally.
Jacques Chappuis, Carlyle managing director and head of the Solutions group, praised Metropolitan as a proven multi-manager in the global real estate field.
"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," he said.
Chappuis also praised David Sherman, president and co-CIO at Metropolitan, as a "highly respected investor" and said he was excited to welcome him and his team of nearly 40 employees to Carlyle.
Sherman added: "Carlyle's global scope and resources will better enable us to deliver the products and services our investors demand. This acquisition is a validation of our model and our growth plans."
Metropolitan will join Alpinvest in Carlyle's Solutions platform, acquired after Carlyle increased its stake from 60%.
Sherman and the remainder of Metropolitan's management team will retain their positions – although Sherman has also been named head of real estate within the Solutions team.
Metropolitan has, to date, focused on value-added and opportunistic indirect real estate investments, committing investments from its 16 established funds to more than 80 managers.