Investment solutions: a promising segment?

Carlyle Group (CG) raised new capital of $3 billion in 1Q17, which included $1.4 billion from its Investment Solutions segment and $1 billion from Real Assets. Carlyle has a positive outlook for the remainder of 2017 for fundraising, but the company’s fundraising will be more inclined toward real estate assets.

The company’s fundraising through the AlpInvest Secondaries program in 1Q17 reached $6.5 billion, and the raising of a new secondary fund is now underway. Investment solutions should constitute 15% of the company’s $100-billion efforts in fundraising. Due to its concentrated approach to private close-end fund investing, CG has seen stronger fundraising and an improved financial performance in its Investment Solutions segment.

What’s Happening Now with Carlyle’s Investment Solutions Segment?

AlpInvest partners completes fundraising

CG’s dedicated co-investment and primary fund has raised $6.5 billion for ASP VI (AlpInvest Secondaries Program VI), beating the target of $6 billion. Of this $6.5 billion, $3.3 billion is committed to ASF VI (AlpInvest Secondaries Fund VI), and the rest went to investors in separately managed accounts.

Global uncertainties should now be creating new opportunities, and the company is planning to pursue investment opportunities in the private equity secondary market. ASP VI will be seeking acquisitions in existing private equity.

A fall in total revenues

CG’s revenues from the Investment Solutions segment fell from $78.6 million in 4Q16 to $73 million in 1Q17. This fall was mainly due to lower income of $35.8 million 1Q17, as compared to $41.2 million in 4Q16. The segment’s carry fund portfolio rose 3% in 1Q17.

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

Latest articles

19 Jul

Afya's IPO Sees Strong Listing Gains

WRITTEN BY Mohit Oberoi, CFA

Afya (AFYA) listed on the Nasdaq Global Select Market on July 19. The company priced its IPO at $19 per share.

19 Jul

What to Watch For in Amazon's Q2 Earnings

WRITTEN BY Sanmit Amin

e-Commerce giant Amazon (AMZN) is scheduled to report its second-quarter earnings results after the closing bell on July 25.

19 Jul

Barrick Gold Reaches Deal to Buy Acacia Mining

WRITTEN BY Anuradha Garg

After a long standoff, Barrick Gold (GOLD) and Acacia Mining (ABGLF) have reached an agreement.

19 Jul

Comcast Shares Pop on Goldman's Optimism

WRITTEN BY Ruchi Gupta

Comcast (CMCSA) shares popped after Goldman Sachs issued a positive note on the company recently. Goldman upgraded its rating for Comcast to "buy" from "hold."

19 Jul

Why Analysts Are Bearish on Netflix Stock

WRITTEN BY Aditya Raghunath

Netflix stock fell over 10.0% on Thursday and is down 0.5% today as well.

On Thursday, pet retailer Chewy (CHWY) reported its first-quarter results after the market closed. The company reported its earnings for the first time.