Global alternative asset manager The Carlyle Group has bought New York-based Metropolitan Real Estate Equity Management, a global
manager of real estate funds of funds.

Financial terms were not released. The transaction, subject
to Metropolitan’s investors’ consent, is expected to close in November 2013.

Metropolitan has 40 employees with five offices in the US, Europe and Asia.
The firm will become part of Carlyle’s Solutions platform, which also includes
AlpInvest, the $48 billion private equity fund of funds operation.

Metropolitan’s current management team, led by David
Sherman, will remain in place. In addition to his role as co-chief investment
officer, he will also become head of real estate within the Solutions platform.
He and his team will continue to run the investment committee and make all
investment decisions.

The Carlyle Group has $180 billion of assets under
management across 118 funds and 81 fund of funds vehicles as of June 30, 2013.  

“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,” said Jacques Chappuis,
Carlyle managing director and head of the Solutions group.