Behind Carlyle’s Distributions and Repurchases



CG’s distribution policy

Carlyle Group’s (CG) historical distribution policy states that in order to pay a quarterly distribution of around 75% of its DE (distributable earnings) per common unit, the company can make quarterly distributions that include its wholly owned subsidiaries.

However, CG’s adjustment of distributable amounts is at the discretion of its general partner, which can eliminate or change the policy at any time. Carlyle’s board of directors has announced a quarterly distribution of $0.10 per common unit, payable on May 22, 2017, which is lower than the $0.16 per common unit in 4Q16.

CG’s trailing dividend yield stands at 7.47%, as compared to the following trailing dividend yields of its competitors:

  • Blackstone (BX): 6.98%
  • Apollo Global Management (APO): 6.18%
  • KKR (KKR): 3.49%
  • Alliance Bernstein (AB): 9.32%
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CG’s balance sheet

Investments that are attributable to unitholders stand at $586 million. These are on-balance sheet investments and exclude equity investments made by Carlyle through NGP Energy Capital Management.

CG’s debt obligations consist of promissory notes, senior notes, and loans and total $1.3 billion, which includes net performance fees on an accrued basis. The total attributable to unitholders stands at $1.4 billion.

In 1Q17, Carlyle retired and repurchased 14,190 units for a purchase price totaling $0.2 million. Carlyle has retired and repurchased 3.7 million units for a purchase price totaling $59.1 million on a cumulative basis through 1Q17, which makes up part of its $200-million unit repurchase program.

Notably, Blackstone (BX), Apollo Global Management (APO), and KKR (KKR) together account for 4.67% of the PowerShares Global Listed Private Equity ETF (PSP).


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