Asset manager Carlyle Group LP (CG), Wednesday reported a loss for the second quarter as market volatility hurt the value of its equity investments with unrealized losses on performance fees.
Carlyle, which went public in May this year, during the second quarter, raised $3.9 billion in funds and generated net proceeds of $3 billion. The company deployed $1.4 billion of equity in 82 new or follow on investments during the quarter.
So far in the third quarter, Carlyle has committed to invest an incremental $1.6 billion in equity across six new pending transactions that should close in the coming months.
"Our firm, portfolio and funds are in very good shape, despite a quarter marked by significant volatility in global equity markets and continued uncertainty in Europe...." said Co-CEO David Rubenstein. Carlyle reported second quarter net loss of $10.3 million or $0.26 per share, compared to net income of $372 million last year. On a pro forma basis, net income for the quarter was $14 million or $0.39 per unit.
Economic net income for the quarter was $57 million, compared to $237 million last year. On a pro forma basis, economic net income for the quarter was $57.7 million or $0.19 per unit.
Carlyle said economic net income was negatively impacted by 2 percent depreciation in carry fund portfolio on a slump in energy and buyout funds.
Distributable earnings for the quarter were up 29 percent at $115 million, compared to $89 million in the prior year. On a pro forma basis, distributable earnings for the quarter were $0.32 per unit.
Revenues for the quarter slumped to $248.4 million from $755.8 million last year.
Carlyle's assets under management, or AUM, at the end of the quarter increased to $156.2 billion from $108 billion a year ago. Compared to the prior quarter, AUM slid 2 percent.
Additionally, Carlyle declared a quarterly distribution of $0.11 per unit, payable on August 31 to common unit holders of record on August 20. The company also plans to distribute $0.16 per unit to common unit holders in each of the first three quarters of the calendar year.
CG is trading at $24.10, down 1.51%, on the Nasdaq.
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