Why Carlyle’s Credit Division Saw a Fall in 2Q17
Carlyle’s net performance fees
In 2Q17, Carlyle Group’s (CG) Credit division saw an increase in its net performance fees to $8 million, compared with $5 million in 2Q16. The company’s CSP III fund appreciated by 5%, while its CSP IV fund saw an appreciation of 8%. Over the past 12 months, the division’s carry funds have appreciated by 11%.
Interested in CG? Don't miss the next report.
Receive e-mail alerts for new research on CG
Carlyle’s Credit division saw a substantial YoY (year-over-year) fall in its ENI (economic net income) in 2Q17. In 2Q17, the division’s ENI stood at $1 million, compared with $12 million in 2Q16, mainly due to a fall in investment income from $11 million in 2Q16 to $2 million in 2Q17.
The division also witnessed a YoY fall in its FRE (fee-related earnings) in 2Q17. In 2Q17, the division’s FRE stood at -$2 million, compared with $1 million in 2Q16, mainly due to a charge of $6 million from a legacy commodities issue.
Fundraising costs also contributed to the decline in FRE. In 2Q17, as a result of lower fee-generating AUM (assets under management), the division saw lower management fees, which led to a decline in FRE. The division’s fee-generating AUM in 2Q17 stood at $25.2 billion, compared with $28.7 billion in 2Q16.