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Inside Carlyle’s Investment Solutions Division in 2Q17

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Fundraising costs

In 2Q17, Carlyle Group’s (CG) Investment Solutions division saw a YoY (year-over-year) decline in its FRE (fee-related earnings). In 2Q17, the division’s FRE stood at $5 million, compared with $6 million in 2Q16, mainly due to general and administrative expenses, compensation costs, and fundraising costs.

The division also saw a YoY decline in its ENI (economic net income) in 2Q17. In 2Q17, the division’s ENI stood at $7 million, compared with $9 million in 2Q16.

According to Carlyle’s management, this division saw fundraising that could be beneficial in the medium term. In 2Q17, the division witnessed fundraising of $1.7 billion and deployments of $1.0 billion. In 2Q17, the division’s realized proceeds stood at $2.3 billion.

In 2Q17, Carlyle’s Investment Solutions division had fee-generating AUM (assets under management) of $28.5 billion, compared with $27.2 billion in 2Q16.

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Debt-to-capital ratio

Carlyle has a total-debt-to-total-capital ratio of 94.4%, compared with the following ratios of peer alternative asset managers (XLF):

  • KKR & Company (KKR): 76.36%
  • Blackstone (BX): 58.05%
  • Apollo Global Management (APO): 71.92%
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