* Q1 ENI $392 mln, down 26 pct
* Q1 distributable earnings $179 mln, down 37 pct
* Assets under management reach $159.2 bln
By Greg Roumeliotis
May 15 Carlyle Group LP, the private
equity firm that went public earlier this month, on Tuesday
reported that first-quarter earnings dropped 26 percent as it
failed to match a strong 2011 first quarter.
Carlyle's decline was mostly due to its corporate private
equity segment that contributes two-thirds of its distributable
earnings. Carlyle could not raise as much cash from its
investments as it did this time last year, when its Asian buyout
funds sold assets.
In the first quarter of 2012, Carlyle sold down stakes in
Dunkin' Brands Group Inc, Nielsen Holdings NV
and Triumph Group Inc; sold a portion of its stake in India's
HDFC Ltd and completed a $600 million initial public
offering of Allison Transmission Holdings Inc.
"We frequently hold investments for four, five or six years.
Thus we would encourage those who hold or follow our units not
to focus disproportionally on quarter-to-quarter results,"
Carlyle co-founder and co-chief executive David Rubenstein said
on a conference call.
Carlyle went public May 3 in a $671 million IPO that met
with lukewarm investor interest. Carlyle had to discount its IPO
to $22 per share on May 2, below the expected price range of $23
to $25 per unit.
Its shares rose 0.3 percent to $21.10 early Tuesday.
Carlyle said economic net income (ENI), a measure of
profitability that takes into account the mark-to-market
valuation of its assets, declined to $392 million from $533
million in the first quarter of 2011.
Distributable earnings, which includes realized rather than
unrealized investment gains and accounts for cash available to
pay dividends, was down 37 percent at $179 million, reflecting
fewer assets sales.
Assets under management increased 48 percent to $159.2
billion, with fee-paying assets under management at $117
billion. Carlyle said it generated realized proceeds of $3.8
billion for its fund investors in the first quarter.
Carlyle said over the past 12 months, its carry funds, which
pay Carlyle and its shareholders a cut of the investment
profits, appreciated 15 percent. Its dry powder -- capital
available to invest in deals -- was $39.9 billion as of the end
"This is a fantastic time to make investments. It is
precisely at times like this when economic data and markets are
sending confusing signals that the best investments can be
made," Carlyle co-founder and co-chief executive Bill Conway
said on the call.
Rubenstein expects to have 11 carry funds in the
fundraising market in 2012, and sees the market improving as
more institutions and high net-worth individuals allocate
capital to alternative assets in search of yield.
Carlyle's latest flagship $10 billion buyout fund is
expected to achieve its first fundraising close, securing
commitments from investors, in the second quarter of 2012,
Carlyle has also started fundraising for its latest Asia
buyout fund and expects a first close in the second half of this
year, he added.