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What 2018 Could Hold for Carlyle’s Corporate Private Equity Unit

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A look at past performance

The Carlyle Group’s (CG) corporate private equity segment saw fundraising of $3.9 billion in the first quarter, compared with $0.2 billion in Q1 2017. Meanwhile, competitors (XLF) Apollo Global Management (APO) and Blackstone (BX) saw inflows of $461 million and $4 billion in their respective private equity segments, and KKR (KKR) ended the first quarter with AUM (assets under management) of $102.2 billion in its private market segment.

In the first quarter, Carlyle’s corporate private equity segment deployed $0.7 billion, reflecting a substantial decline YoY (year-over-year). In Q1 2018, the segment’s economic income amounted to $114 million, and its total AUM rose 42% YoY to $75 billion.

What next for corporate private equity?

In the second quarter, the segment’s total AUM and carry funds are expected to improve sequentially, primarily because of equity market improvement. Its revenue may rise as the Carlyle Partners VII Fund starts generating fees. Its realizations are also expected to rise sequentially because of higher valuation.

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