Ultra-Wealthy Family Offices Invest in Real Estate Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: CNBC
- Investment Trend: Realm has collectively invested about $100 million in Northern California real estate over the past six months, seizing opportunities amid market stagnation, reflecting the confidence of ultra-wealthy families in long-term investments.
- Leasing Strategy: Declaration Partners signed a $50.1 million master lease for three storefronts in New York's SoHo, ensuring future appreciation despite current rents being below market levels, thanks to a 25-year lease term.
- Market Optimism: A J.P. Morgan Private Bank survey revealed that 35% of U.S. family offices plan to increase their real estate exposure, indicating optimism in the market, particularly against the backdrop of rising inflation risks.
- Asset Allocation: Lido Advisors is investing in multifamily properties at discounts of 20% to 30%, emphasizing the advantages of real estate as a tax-efficient asset, which attracts clients seeking cash flow and portfolio diversification.
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Analyst Views on CG
Wall Street analysts forecast CG stock price to rise
12 Analyst Rating
7 Buy
4 Hold
1 Sell
Moderate Buy
Current: 46.770
Low
53.00
Averages
67.91
High
83.00
Current: 46.770
Low
53.00
Averages
67.91
High
83.00
About CG
The Carlyle Group Inc. is a global investment company. The Company's segments include Global Private Equity, Global Credit and Carlyle AlpInvest. The Global Private Equity segment advises the Company's buyout, growth, real estate, infrastructure, and natural resources funds. The segment also includes the NGP Carry Funds advised by NGP Energy Capital Management (NGP). The Global Credit segment advises funds and vehicles that pursue investment strategies including insurance solutions, liquid credit, opportunistic credit, direct lending, asset-backed finance, aviation finance, infrastructure credit, cross-platform credit products, and global capital markets. The Carlyle AlpInvest segment advises global private equity programs that pursue secondary purchases and financing of existing portfolios, managed co-investment programs, and primary fund investments. The Carlyle AlpInvest segment helps investors meet their objectives through tailored portfolio construction and investment selection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Escalating Geopolitical Risks: The ongoing conflict in the Middle East has made investors more cautious about committing to new funds, particularly as Middle Eastern investment funds pause outbound commitments, leading to a decline in market confidence and a slowdown in fundraising activities.
- Increased Appeal of Large Funds: Despite the challenging fundraising environment, around 60 Asia Pacific-focused funds are actively seeking commitments of over $1 billion each, indicating a preference for top-tier managers, with these funds expected to account for more than 10% of global targeted capital.
- Optimistic Future Outlook: Despite short-term uncertainties, Deloitte's Sam Padgett noted that approximately $240 billion in dry powder in the Asia-Pacific region supports future investments, indicating that the market fundamentals remain strong and fundraising activities are expected to recover in 2026.
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- Investment Trend: Realm has collectively invested about $100 million in Northern California real estate over the past six months, seizing opportunities amid market stagnation, reflecting the confidence of ultra-wealthy families in long-term investments.
- Leasing Strategy: Declaration Partners signed a $50.1 million master lease for three storefronts in New York's SoHo, ensuring future appreciation despite current rents being below market levels, thanks to a 25-year lease term.
- Market Optimism: A J.P. Morgan Private Bank survey revealed that 35% of U.S. family offices plan to increase their real estate exposure, indicating optimism in the market, particularly against the backdrop of rising inflation risks.
- Asset Allocation: Lido Advisors is investing in multifamily properties at discounts of 20% to 30%, emphasizing the advantages of real estate as a tax-efficient asset, which attracts clients seeking cash flow and portfolio diversification.
See More
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- Deteriorating Fundraising Environment: According to a Bain & Company report, Asia-focused private equity funds raised only $58 billion last year, marking the lowest level in over a decade, reflecting weak demand for new funds amid aging assets and underperformance pressures.
- Escalating Geopolitical Risks: The ongoing conflict in the Middle East has made investors more cautious about committing to new funds, particularly as Middle Eastern investment funds pause outbound commitments, leading to a decline in market confidence and a slowdown in fundraising activities.
- Increased Appeal of Large Funds: Despite the challenging fundraising environment, around 60 Asia Pacific-focused funds are actively seeking commitments of over $1 billion each, indicating a preference for top-tier managers, with these funds expected to account for more than 10% of global targeted capital.
- Optimistic Future Outlook: Despite short-term uncertainties, Deloitte's Sam Padgett noted that approximately $240 billion in dry powder in the Asia-Pacific region supports future investments, indicating that the market fundamentals remain strong and fundraising activities are expected to recover in 2026.
See More
Wall Street Banks Eye Market Share from Private Credit Lenders
- Market Share Recovery: According to PitchBook data, banks' share of buyout financings over $1 billion fell to 39% in 2023 but has since rebounded to over 50% in 2025, indicating potential for banks to regain ground in the private credit market.
- Regulatory Environment Improvement: With expectations of easing regulations, particularly regarding the Basel III Endgame implementation, banks are poised to regain competitive advantages in the lending market, potentially attracting more business lending and increasing market share.
- Challenges for Private Credit: The private credit sector is facing intensified pressures as higher interest rates make it difficult for borrowers to repay loans, increasing default risks, while rising investor demand for liquidity may impact capital inflows into private credit.
- Signals from Large Transactions: Recent active participation of banks in large financing deals, such as multi-billion-dollar leveraged loans for Electronic Arts and Sealed Air, indicates a strong willingness to engage in significant transactions when market conditions permit, potentially enhancing competition in the market.
See More
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- Industry Growth: Over the past two decades, the private credit industry has expanded to nearly $3 trillion, primarily due to tightened banking regulations post-2008 financial crisis, prompting investors to seek flexible loans with higher returns.
- Major Players: As of last year, Apollo Global Management leads the private credit sector with $480 billion in assets under management, followed by Blackstone and Ares Management with $355 billion and $309 billion respectively, indicating a high market concentration.
- Rising Default Rates: The default rate in private credit has risen to 9% due to struggles in the software sector, raising investor concerns about potential surges in defaults, particularly in a high-interest rate environment.
- Investor Redemption Wave: Apollo recently reported redemption requests totaling 11% of all outstanding shares in its main private credit fund, despite a 5% quarterly cap, reflecting strong market demand for liquidity.
See More
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- Investment Trend: Realm has collectively invested about $100 million in Northern California real estate over the past six months, seizing opportunities amid market stagnation, reflecting the confidence of ultra-wealthy families in long-term investments.
- Leasing Strategy: Declaration Partners signed a $50.1 million master lease for three storefronts in New York's SoHo, ensuring future appreciation despite current rents being below market levels, thanks to a 25-year lease term.
- Market Optimism: A J.P. Morgan Private Bank survey revealed that 35% of U.S. family offices plan to increase their real estate exposure, indicating optimism in the market, particularly against the backdrop of rising inflation risks.
- Asset Allocation: Lido Advisors is investing in multifamily properties at discounts of 20% to 30%, emphasizing the advantages of real estate as a tax-efficient asset, which attracts clients seeking cash flow and portfolio diversification.
See More
Carlyle and KKR to Build Data Centers for US Army
- Project Investment Scale: Carlyle and KKR plan to invest up to $2 billion each in building two data centers on military bases, highlighting the potential for long-term collaboration with the military infrastructure.
- Data Center Capacity: Carlyle will construct a 2.5-3 gigawatt data center at Fort Bliss in Texas, while KKR, through its subsidiary CyrusOne, will build a 1 gigawatt data center at Dugway Proving Ground in Utah, addressing the military's data processing needs.
- Long-Term Lease Agreements: The Army will provide long-term leases for the data centers, ensuring that while the Army does not invest, it can exclusively utilize a certain percentage of the centers' capacity, enhancing the strategic value of the project.
- Negotiation Progress: Although Carlyle, KKR, and the Army have not finalized agreements, they are engaged in exclusive negotiations, indicating a strong commitment from all parties and the potential for future collaboration.
See More
Acentra Health Appoints New Executives to Drive Growth
- Executive Appointments: Acentra Health announced the appointment of Mohamed Karama as Senior Vice President of Growth Acceleration and Performance, and the promotion of Nirav Dalal to Senior Vice President of Sales Leadership, aimed at advancing the company's transformation and strategic growth initiatives.
- Growth Acceleration Strategy: With over 25 years of global executive leadership experience, Karama has driven sustained revenue growth and digital transformation in various organizations, and is expected to accelerate revenue growth at Acentra Health by strengthening cross-functional execution.
- Sales Leadership Enhancement: Since joining Acentra Health in 2024, Dalal has demonstrated exceptional performance in capture management, and his leadership will further expand the company's business development and capture management functions, enhancing client value.
- Market Development Vision: Karama expressed his commitment to driving growth through sales excellence, market development, and data-driven decision-making, indicating that Acentra Health is actively investing in its growth engine to meet the needs of clients and the broader market.
See More
