Carlyle Group reported $230 billion of assets under management as of Sept. 30, up 4% from $221.4 billion as of June 30, and a 3.7% bump from $221.8 billion from Sept. 30, 2019.
On an earnings call Thursday, CEO Kewsong Lee emphasized that Carlyle executives are focused on increasing the company's fee related earnings, which are the difference between fee earnings, including management and transaction fees, and operating expenses. He said Carlyle has increased fee-related earnings by "scaling our largest fund platforms while carefully managing expenses."
Carlyle's fee-related earnings were $118.7 billion as of Sept. 30, up 9.1% from $108.8 billion from the third quarter 2019.
Mr. Lee also attributed the AUM increase to fundraising, with Carlyle raising $5.5 billion in the third quarter to a total of $18 billion since January. Most of the capital was raised by the firm's global credit and investment solutions units — made up of customized portfolios and its co-investment/secondaries subsidiaries for private equity and real estate, which Carlyle has been building over the past several years.
Among highlights for the quarter, Carlyle and T&D Holdings in June completed the acquisition of 76.6% interest in insurance company Fortitude Group Holdings from American International Group for $2.2 billion.
"By the end of this year, Fortitude will have rotated or committed to invest approximately $4 billion of capital into Carlyle funds, with more expected in 2021," Mr. Lee said. "The funds raised from Fortitude are attractive because of the recurring, permanent-like nature of this capital."