Carlyle Sees Negative 3Q ENI, but Registers Solid Distributable Earnings Jump
October 29, 2015
The Carlyle Group reported a 3Q pre-tax economic net loss of $128 million yesterday, driven by a 4% carry fund portfolio depreciation. Mark-to-market valuations have hurt the bulk share of alternative asset managers last quarter, yet Carlyle was able to post solid distributable earnings of $244 million, a 55% YoY jump, driven by strong realization cash flows. The firm generated realized proceeds of $3.7 billion from 121 investments across 38 carry funds last quarter; its corporate private equity segment alone generated about $2.6 billion in realized proceeds. AUM in the CPE unit declined slightly, coming in at $63.1B, but the firm did close on $2.8 billion for its latest vintage Europe and Japan buyout funds, as well as an additional closing in its second U.S. mid-market buyout fund.