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Money Management

Carlyle Group reports 11.8% AUM gain in quarter

Carlyle co-CEO Glenn A. Youngkin

Carlyle Group had $195.1 billion in assets under management as of Dec. 31, up 11.8% from three months earlier and up 24% from a year earlier, according to the alternative investment firm's earnings report released Wednesday.

Carlyle attributed the increase to a combination of $43 billion in fundraising and fund appreciation, partially offset by $26 billion in realized proceeds to fund investors. Carlyle raised $24.7 billion in new capital in the fourth quarter and $43.3 billion in 2017.

Carlyle's private equity AUM totaled $72.6 billion as of Dec. 31, up 30.3% from Sept. 30 and up 43% from Dec. 31, 2016. Carlyle's investment solutions — composed of customized portfolios and its co-investment/secondaries subsidiaries for private equity and real estate — AUM was $46.3 billion as of Dec. 31, down 1.5% from three months earlier and up 7% from a year earlier. Real assets AUM totaled $42.9 billion, a 7.8% increase from the end of the previous quarter and a 25% increase from the end of the year-earlier quarter. Global credit strategies had $33.3 billion in AUM, up 4.4% from Sept. 30 and up 13% from Dec. 31, 2016.

Carlyle held first closes on its latest vintage U.S. and Asia buyout funds during the fourth quarter, which totaled $18.8 billion.

Carlyle's co-CEO Glenn A. Youngkin said in the firm's earnings call to analysts Wednesday that he currently expects the company to raise $25 billion in 2018.

Management fees were $279.3 million in the fourth quarter, up 6.4% from the prior quarter and up 7.8% from the year-earlier quarter. Performance fees totaled $583.1 million, up 104% from the third quarter and up 222% from the fourth quarter of 2016.

GAAP net income was $58.9 million in the fourth quarter, up from $44.6 million in net income in the previous quarter and up from a net loss of $8.9 million in the year-earlier quarter.