Carlyle Group's assets under management totaled $194.5 billion as of Dec. 31, down 4% from Sept. 30 but up 3% from Dec. 31, 2013, the alternatives investment manager's unaudited earnings report released Wednesday showed.
Fee-earning assets under management totaled $135.6 billion, down 3% from three months earlier and also down 3% from a year earlier.
Realized investment loss was $20 million in the quarter and $6 million for the year, mainly from losses on certain international real estate investments — a mezzanine loan to one of Carlyle's European real estate funds and Brazilian real estate developer Urbplan Desenvolvimento Urbano SA. Carlyle has about €24 million (US$ 27.1 million) of remaining investment in the mezzanine loan and $21 million in Urbplan. However, Carlyle estimates Urbplan will require another $25 million of capital in this year to complete its expected business turnaround, the earnings release said.
By comparison, Carlyle earned realized investment income of $11 million in 2013.
Net income under U.S. GAAP was $16 million for the quarter and $85.8 million for calendar 2014. This is down from $71.3 million in the fourth quarter of 2013 and $104.1 million for all of 2013.
In the fourth quarter, Carlyle earned management fees of $281.3 million, compared to $253.1 million in the fourth quarter of 2013. Carlyle earned $1.2 billion of management fees for all of 2014, compared to $984.6 million in 2013. Realized performance fees were $484.8 million for the fourth quarter compared to $612.1 million in the fourth quarter of 2013. Realized performance fees for all of 2014 were $1.3 billion, compared to $1.2 billion for 2013.