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Carlyle’s assets rise 3% in quarter, drop 9% for year

Carlyle Group reported $162 billion in assets under management as of March 31, up 3% from the three months earlier but down 9% from a year earlier, according to the alternative investment firm's earnings report released Wednesday.

The company attributed the increase in AUM to $4.9 billion in market appreciation, $2.7 billion in commitments, net of expired capital, and $854 million in foreign-exchange impact. Those gains were partially offset by $3.7 billion in distributions, $370 million in changes in collateralized loan obligation collateral balances, $143 million in capital called, and $7 million in subscriptions, net of redemptions.

As of March 31, corporate private equity had $53 billion in assets under management, up 4.1% from Dec. 31 and down 13.3% from March 31, 2016.

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 $44 billion in AUM as of March 31, up 2.1% from the end of the fourth quarter and down 5% from the end of the year-earlier quarter.

Real assets totaled $35.6 billion as of March 31, up 3.8% from three months earlier but down 3% from a year earlier. Global market strategies, which consist of structured credit, carry and financing funds, and hedge funds, had $29.4 billion as of March 31, the same as Dec. 31 but down 13.5% from March 31, 2016.

Dry powder totaled $49.9 billion as of March 31 compared with $50.1 billion as of Dec. 31 and $56.6 billion as of March 31, 2016.

Carlyle's U.S. GAAP net income for the first quarter was $83 million, compared to a net loss of $8.9 million in the fourth quarter and net income of $8.4 million in the first quarter of 2016.

Management fees were $246.3 million in the first quarter, down 4.9% from the previous quarter and down 14.9% from the year-earlier quarter.

Performance fees totaled $681.6 million in the first quarter, a 277% increase from the prior quarter and a 369% increase from the year-earlier quarter.