Carlyle European Real Estate Partners III

The Challenge

A Continental European pension fund expressed a desire to sell out of a holding in a Carlyle European private equity real estate fund in mid-2012.  Their total exposure to the fund exceeded €100m as a single holding.  The client would not entertain a partial sale and had clear pricing expectations.  Due to the size of the holding, the sell interest could not be communicated openly to the secondary market.

The Solution

As the client was highly sensitive to price, the entire process was managed over a two year period.  Pricing in the European Continental European market remained weak following the substantial falls in values witnessed in the aftermath of the global financial crisis.  Initially the spread in price between buyers and the seller was far too large to bridge, however, through a combination of improved market conditions and a sustained marketing approach for the stake we were able to achieve pricing deemed satisfactory to the seller.