Carlyle Group LP (CG.O) on Wednesday posted an 11 percent drop in third-quarter profit as it generated less cash from asset sales for its shareholders than it has done in any other quarter as a publicly listed alternative asset manager.
While Carlyle's fund portfolio appreciated 4 percent versus 3 percent a year ago, it did not take advantage of favorable capital markets to exit investments like some of its peers such as Blackstone Group LP (BX.N).
Economic net income (ENI), an earnings measure comprising cash and paper profits or losses based on how funds have been marked to market, declined to $195 million in the third quarter from $219 million a year before.
This translated into post-tax ENI per adjusted share of 51 cents compared to the average forecast of analysts in a Thomson Reuters poll of 60 cents.
Carlyle's pretax distributable earnings, which show how much cash is available to pay dividends, were $105 million, its lowest ever on a quarterly basis since it went public in May 2012, versus $207 million a year earlier, as Carlyle monetized less of its assets.
Carlyle said however it had additional portfolio companies in the pipeline which it expected to go public over the next two quarters, generating more performance fees for itself.
Fee-related earnings were $40 million, down $6 million from the third quarter of 2012 due to higher fundraising costs and other expenses, Carlyle said.
Total assets under management were $185.0 billion at the end of September, up from $180.4 billion at the end of June. Carlyle said it raised $6.5 billion in new capital from investors during the quarter.
Carlyle said it had $51.1 billion of available capital for deals, or so-called "dry powder," at the end of the quarter, including $22.8 billion in private equity and $9.1 billion in energy and real estate
Carlyle declared a third-quarter dividend of 16 cents per share.
(Reporting by Greg Roumeliotis in New York; Editing by Gerald E. McCormick)