The Carlyle Group is moving into the core-plus real estate sector for the first time with its new fund, Carlyle Property Investors, according to sources.
Carlyle declined to comment.
Industry sources indicate that Carlyle is making the move as it has been contacted by investors in its opportunity funds requesting the strategy.
The investment manager has had to turn down core-plus deals in the past.
Carlyle is projected to raise $200m (€177m) by the end of this year, with $500m a year targeted for the open-ended vehicle over the coming years.
The manager is the third opportunistic fund manager to branch out into the core-plus sector, following Blackstone in 2014 for its Blackstone Property Partners fund and Morgan Stanley Real Estate earlier this year with its Prime Plus Property Fund.
Any investor entering in the fund will be unable to withdraw its commitment for two years, according to the source.
The fund is targeting a 9-11% net IRR, with leverage between 40% and 50%.
All of the investments for Carlyle Property Investors will be in the US, focusing on apartments and senior living assets.
As reported yesterday, Carlyle raised $4.2bn for an opportunistic fund focused on the US.
The investment manager said its seventh US real estate fund, Carlyle Realty Partners VII, had reached its hard cap.
The Teacher Retirement System of Texas committed $200m, while $75m came from the Texas Permanent School Fund.
The Florida State Board of Administration and the Tennessee Consolidated Retirement System each committed $50m.