Carlyle Group reports slight gain in assets for quarter

Carlyle Group reported $157.4 billion in assets under management as of Sept. 30, an increase of 0.8% from the previous quarter and 5.9% above the third quarter of 2011.

Carlyle's largest AUM is from private equity, $53.2 billion, followed by funds of funds, $44.6 billion; global market strategies, $30.1 billion; and real assets, $29.5 billion, according to its third-quarter earnings statement released Thursday.

For the quarter, net distributions of $5.5 billion were offset by $2.9 billion in market appreciation, $2.4 billion in new capital commitments, $847 million in foreign-exchange impact, $506 million in changes in par value of CLO collateral and $379 million in net hedge fund subscriptions.

Fee-related earnings were $46 million, a 28% increase from the second quarter. Realized net performance fees in the latest quarter were $156 million, a 106% increase from three months earlier.

Revenues were positively impacted from public equity exits in China Pacific Life, Kinder Morgan, Dunkin' Brands and SS&C Technologies, according to the earnings statement.

Total revenue for the quarter was $858.5 million, up from $61 million last quarter and a $59.6 million loss in the third quarter of 2011 that included an $859 million unrealized loss in performance fees, according to the earnings statement. Net income after taxes was $203.6 million on a non-GAAP basis and $19 million on a GAAP basis. Carlyle, like other private equity firms, reports profit that doesn't comply with generally accepted accounting principles.

For the quarter, $3.4 billion was raised for funds and $1.6 billion was invested. For the last 12 months, Carlyle has raised $10.8 billion in funds and invested $7.5 billion. It also reported realized proceeds of $5.1 billion for the quarter and $15.1 billion for the 12 months ended Sept. 30.

“Every component of the Carlyle engine is running strong,” said David Rubenstein, co-CEO, in the earning statement. “Third-quarter fundraising was solid, our investment pace was active, portfolio valuations were up and we generated substantial cash returns for our fund investors.”

This was the second earnings statement from Carlyle since it went public May 2.