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Carlyle Group: The $193 Billion Alternative Investment Manager

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Active fund manager

The Carlyle Group (CG) is an alternative investment asset manager with almost $193 billion in assets under management across 128 funds and 142 fund of funds as of June 30, 2015. The company advises investment funds and vehicles that invest across a range of asset classes, geographies, and investment strategies to generate returns for its investors or limited partners.

Alternative investment management is an active style of investing. It attempts to outperform the major indices, like the S&P 500 (SPY), instead of replicating returns as is the case in passive fund management. Active fund management generally requires a performance fee over and above a certain fixed fee for managing funds.

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Product offerings

Carlyle serves its clients through 1,650 employees, including more than 700 investment professionals in 40 offices across six continents. The company manages money for more than 1,650 active carry fund investors from 78 countries.

Carlyle’s alternative asset management includes investment vehicles focused on private equity, hedge fund solutions, funds of funds, real estate, non-investment grade credit, and multi-asset class exposures outside of other funds’ mandates. The company classifies its segments into four categories:

  1. Corporate Private Equity: advises buyout and growth capital funds
  2. Global Market Strategies: advises active funds that pursue investment strategies
  3. Real Assets: advises active carry funds focused on real estate, infrastructure, and energy and natural resources
  4. Investment Solutions: provides comprehensive investment opportunities and resources for investors

Carlyle’s total assets under management (or AUM) stood at $193 billion. Let’s compare this to Carlyle’s peers:

  • Blackstone (BX) had $333 billion in AUM.
  • KKR & Co. (KKR) had $98 billion in AUM.
  • BlackRock (BLK) had $4.72 trillion in AUM.
  • Apollo Global Management (APO) had $163 billion in AUM.

Together, these companies form 1.36% of the Financial Select Sector SPDR Fund (XLF).

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