Connecticut Retirement Plans and Trust Funds (CRPTF) is considering making a $200m (€182.7m) commitment to Carlyle’s latest US opportunistic real estate fund.
CRPTF disclosed in a meeting document that it is planning to place the capital into the Carlyle Realty Partners X, a fund seeking to raise $8bn.
The pension fund said the ongoing capital market dislocation has reduced liquidity and increased the cost of capital, creating opportunities across all property types to acquire assets at discounts to recent peak evaluations.
Carlyle Realty Partners is expected to have a first single close for the fund in June 2024, according to CRPTF.
Carlyle Realty Partners is expected to co-invest 3% of the total capital raised by Partners X, up to a maximum of $150m. However, the manager retains the discretion to potentially increase this co-investment amount.
Partner X will focus on demographic and technology-driven sector assets like residential, self-storage and industrial that can generate a net internal rate of return of 14% to 17%.
The fund may invest up to 5% of its capital outside of the US and Canada.
Carlyle Realty Partners declined a request for comment.
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