2010 Annual Report - The Carlyle Group

section Three diversificationin the Netherlands is an addition to a portfolio of student housing developments in theBenelux countries. Carlyle Europe Real Estate Partners also exited three investments: twoin France and one in the United Kingdom.In Asia, the markets in general continued to be challenging in 2010. Japan continues toexperience a lack of domestic liquidity arising from the global financial crisis. In China,valuations are at significantly high levels due to excessive liquidity. Despite the challengingenvironment, Carlyle was able to secure one investment in China, a joint venturefor-sale residential development project in Huzhou, and exit one investment in Japan, amixed-use development project in Hiroshima. Also in 2010, Carlyle developed a strategicpartnership with the Korean National Pension Service in advising and managing theiracquisition of a $652 million Class A office property located in Sydney, Australia. As aresult of our patience and discipline, we believe we are well positioned with our transactionpipeline, particularly in China, to make more attractive investments in 2011.Energy and Power Products. Carlyle teamed up with Riverstone in 2000 to pursue investmentsin the energy and power industry. Since then, Carlyle/Riverstone has establishedsix global energy, power and renewable energy funds with aggregate equity commitmentstotaling $17 billion.In February 2011, Kinder Morgan, one of the largest energy transportation, storage anddistribution companies in North America, completed one of the largest private equitybackedIPOs in U.S. history. Shares sold in the public offering, which raised approximately$3.3 billion, were sold by a group of existing Kinder Morgan investors, includingCarlyle and Riverstone. In 2010, Riverstone/Carlyle Global Energy and Power Fund IV,L.P. had an active year, completing 11 new investments.Robert G. StuckeyManaging Directorand Head of the U.S.$311 millionAmount raised in the CoreSite IPOReal Estate TeamThe Carlyle group 39