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Carlyle Attracts New Long-Term Commitments on Performance

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Assets under management

Carlyle Group (CG) announced that its AUM (assets under management) fell by 7% to $187.7 billion in fiscal 3Q15 compared to fiscal 3Q14. The company’s AUM saw positive commitments of $3.9 billion offset by $6.4 billion in distributions, $1.8 billion on market depreciation, $0.6 billion in net redemptions, and $0.1 billion due to adverse foreign exchange.

Fee-earning assets under management fell by 9% in the third quarter on an LTM (last 12-month) basis. The company had a total of $12.6 billion in recently raised capital, for which it hasn’t started charging management fees.

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The company expects two-thirds of the total outstanding capital to move to fee-earning AUM by the first quarter of 2016. Fee-earning AUM saw commitments into the vintage European and Japanese buyout and US real estate funds, additional commitments to second power funds, new CLOs (collaterized loan obligations), and several Investment Solutions vehicles.

Dry powder

Carlyle had a total dry powder or uninvested commitments of $63.2 billion, forming 34% of the total assets under management as of September 30, 2015. This reflected the solid funding power of the company. It included $27.5 billion in corporate private equity, $3.9 billion in Global Market Strategies, $16.7 billion in real assets, and $15.1 billion in Investment Solutions.

Carlyle’s total AUM stood at $188 billion. Let’s compare this to Carlyle’s peers:

  • Blackstone (BX) – $333 billion AUM
  • KKR (KKR) – $98 billion AUM
  • BlackRock (BLK) – $4.5 trillion AUM
  • Apollo Global Management (APO) – $163 billion AUM

Together, these companies form ~1.4% of the Financial Select Sector SPDR Fund (XLF).

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