Behind Carlyle Group’s Investment Solutions Division



New funds coming up

After witnessing a close in the fundraising of AlpInvest Secondaries program, Carlyle Group (CG) has begun fundraising for its new AlpInvest co-investment fund in 2Q17. Carlyle Group’s management expects its Investment Solutions division to contribute around 15.0% of the fundraising target of $100.0 billion. 

Another secondary fund is being raised by the Metropolitan Real Estate division, and there has been noticeable interest by the fund investors. Metropolitan Real Estate looks after the real estate investments for the Investment Solutions division. Management expects that these fundraising efforts could help the company in achieving alpha returns for the fund investors. These upcoming funds would lead to an increase in fee-generating AUM[1. assets under management] and fee-related earnings (or FRE).

In 1Q17, Carlyle Group’s total realized proceeds stood at $3.5 billion, out of which more than 50.0% was contributed by the Investment Solutions division. Carlyle Group does not receive significant carry from the realized proceeds that were generated by its Investment Solutions division. 

In 1Q17, the division’s FRE saw a significant increase compared to 1Q16. In 1Q17, the division’s FRE stood at $8.0 million and in 1Q16, the division’s FRE stood at $3.0 million.

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Revenue per share

Carlyle Group’s (CG) revenue per share stood at $34.73 on a trailing-12-month (or TTM) basis. The following alternative asset managers (XLF) reported their revenues per share on a TTM basis:

  • Apollo Global Management (APO): $13.22
  • Blackstone (BX): $9.15
  • KKR & Co. (KKR): $10.00

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