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Carlyle’s Corporate Private Equity Assets Rise

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Corporate private equity segment

Carlyle (CG) released its 1Q18 results on May 1. In 1Q18, Carlyle’s corporate private equity segment’s carry funds rose 4%, and its fundraising expenses rose substantially YoY (year-over-year) from $1 million to $9 million. The segment reported net performance revenue of $136 million in 1Q18 thanks to carry fund appreciation.

In 1Q18, the segment’s fund management fees fell YoY from $116 million to $114 million, and it had principal investment income of $15 million. Its fee-related earnings fell YoY to -$13 million from $16 million.

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Realizations and fundraising

The corporate private equity segment’s realizations rose YoY to $2.7 billion in 1Q18 from $1.1 billion, boosting its net performance revenue. The segment’s deployments fell YoY to $0.7 billion from $2.5 billion.

At the end of 1Q18, the segment’s total AUM (assets under management) stood at $75 billion, rising 42% YoY. Its AUM were boosted by equity markets and fundraising and partially offset by realizations. In comparison, competitor (XLF) Blackstone (BX) had private equity AUM of $111.4 billion in 1Q18, while KKR (KKR) and Apollo Global Management (APO) had private equity AUM of $102.2 billion and $69 billion, respectively.

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