How Urbplan Impacted Carlyle Group’s Real Assets Division
Fall in distributable earnings
The Carlyle Group’s (CG) Real Assets division saw a substantial fall in distributable earnings (or DE) in 3Q17 compared to 3Q16. In 3Q17, its DE was -$41 million compared to $10 million in 3Q16.
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The YoY (year-over-year) fall in DE came on the back of Urbplan-related loss charges.
The Carlyle Group reported revenues of $3.2 billion on a trailing 12-month (or TTM) basis. Below are the revenues on a TTM basis for some of its peers (XLF):
- Blackstone Group (BX): $6.3 billion
- Apollo Global Management (APO): $2.2 billion
- KKR & Co. (KKR): $5.3 billion
Carlyle’s Real Assets division saw a marginal fall in its fee-related earnings (or FRE), from $14 million in 3Q16 to $13 million in 3Q17. The fall was due to increased expenses. The division witnessed a rise in management fees in 3Q17.
Net performance fees
The Real Assets division reported net performance fees of $50 million in 3Q17, a significant rise on a YoY basis. During the same period, the division’s funds rose 2%.
The division’s economic net income rose from $4 million to $8 million in 3Q17.
Fee-generating assets under management rose marginally, from $28.9 billion in 3Q16 to $29.8 billion in 3Q17. The YoY rise was due to fees related to the division’s funds. Inflows also contributed to the YoY rise.