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Carlyle Group: New Funds Coming in Private Equity Division

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Future outlook

In 2H17, Carlyle Group (CG) is expected to witness significant fundraising in its Corporate Private Equity division. The division could see closings in its funds in 2018. According to Carlyle Group’s management, the company’s Private Equity division is expected to contribute more than one-third of the fundraising target of $100 billion.

In April 2017, Carlyle Group and Hellman & Friedman decided to recapitalize the US-based pharmaceutical company Pharmaceutical Product Development (or PPD). As the joint owners, Carlyle Group and Hellman & Friedman are including two new investors by selling their stakes. 

However, the joint owners would remain majority shareholders. This recapitalization is expected to close in 2Q17. According to the company’s management, the carry generated would be realized in 2Q17 and 3Q17.

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New funds and fund raising

In 2H17 and fiscal 2018, Carlyle Group (CG) is expected to bring new funds to the market in its Private Equity division, which is mainly due to investor demand for its private equity products. Considering the positive environment of fundraising, Carlyle Group management expects to raise a significant level of funds. Management also expects that the new funds would reach their maximum cap.

Peer comparison

On a trailing-12-month (or TTM) basis, Carlyle Group (CG) delivered a return on assets of ~5.1%. On a TTM basis, these alternative asset managers (XLF) had delivered the following returns on their assets:

  • KKR & Co. (KKR): 6.6%
  • Apollo Global Management (APO): ~26.4%
  • Blackstone (BX): ~11.7%
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