Carlyle Q2 Loss Narrows On Higher Revenues - Update

(RTTNews) - Alternative asset manager Carlyle Group L.P. (CG) reported Wednesday a narrower net loss in its second quarter, benefited by significantly higher revenues. The Board of Directors has also declared a quarterly distribution to unit holders.

Carlyle Co-CEO David Rubenstein said, "We had a solid quarter across the firm and continued to demonstrate our ability to produce cash distributions for unitholders. Fundraising strengthened across the board, and we continue to invest in growth initiatives to build our capabilities."

For the second quarter, net loss attributable to the company narrowed to $3.3 million or $0.07 per share, from $10.3 million or $0.26 per share in the same quarter last year. Net loss attributable to Carlyle Holdings were $30.7 million, narrower than loss of $182.4 million in the prior year.

Pre-tax distributable earnings, excluding all equity-based compensation expense, climbed 41 percent to $163 million from last year's $116 million. Distributable earnings were $0.53 per common unit.

On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter rose to $769.3 million from $248.4 million in the prior year quarter. Segment revenues surged to $508 million from $61 million in the prior year, but missed analysts' consensus revenue estimate of $548.94 million for the quarter.

The company's fee-related earnings were $26 million, down 26 percent from the prior year, mainly reflecting higher fundraising costs.

Realized investment income was largely driven by gains on a single debt investment, with some additional gains on other balance sheet investments, the company noted.

Total performance fees were $234.7 million, compared to last year's negative performance fees of $200.8 million. Realized net performance fees climbed 55 percent to $118 million, positively impacted by exits in certain companies. Total assets under management climbed 16 percent to $180.4 billion from last year's $156.2 billion.

During the second quarter, within its carry funds, Carlyle generated net realized proceeds of $3.9 billion from 144 different investments across 29 carry funds.

The Board of Directors has declared a quarterly distribution of $0.16 per unit to holders of record at the close of business on August 19, payable on August 30.

Carlyle closed Tuesday's trading session at $28.31, down $0.18 or 0.63 percent.