Carlyle Group’s AUM drops 9.9% over the year

Carlyle Group’s assets under management fell to $169.1 billion as of Sept. 30, down 3.7% from three months earlier and down 9.9% from a year ago, said the alternative money manager’s third-quarter earnings report on Wednesday.

The company attributed the drop in AUM in the third quarter to $8.7 billion in distributions and $1 billion in net redemptions. Partially offsetting the losses were $2.6 billion in market appreciation, $1 billion in commitments, net of expired capital, and $900 million in foreign-exchange impact.

As of Sept. 30, corporate private equity had $54.6 billion in AUM, down 5.2% from the three months earlier and down 13.5% from a year earlier.

Investment solutions — which is what Carlyle Group calls its customized portfolios consisting of primary, secondary and co-investments, commingled funds and separately managed accounts — had AUM of $44.7 billion as of Sept. 30, down 2.2% from the end of the second quarter and down 8.6% from Sept. 30, 2015.

Real assets totaled $35.7 billion in AUM as of Sept. 30, down 4.8% from June 30 and down 11.2% from a year ago. Global market strategies, which consist of structured credit, carry and financing funds, and hedge funds, had $34.1 billion in AUM as of Sept. 30, down 1.7% from three months earlier and down 3.9% from Sept. 30, 2015.

Total dry powder for the third quarter totaled $54.4 billion. Dry powder totaled $55.1 billion for the second quarter and $63.2 billion for the third quarter of 2015.

Carlyle’s U.S. GAAP net income for the third quarter was $800,000, compared to $6.1 million in the second quarter and an $84 million loss in the third quarter of 2015.

The firm experienced a net gain of $15.3 million in the nine months ended Sept. 30, compared to a net loss of $13.8 million in same period the previous year.

Management fees were $255.1 million in the third quarter, down 6.4% from the previous quarter and down 8.3% from the year-over-year quarter.

Performance fees totaled $214.7 million in the third quarter, a 1.8% increase from the second quarter. The company had reported a loss in performance fees of $246.6 million in the third quarter of 2015.