Document



 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
 
 
 
 
FORM 8-K
 
 
 
 
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 6, 2019
 
 
 
 
 
The Carlyle Group L.P.
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
 
 
 
Delaware
 
001-35538
 
45-2832612
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
1001 Pennsylvania Avenue, NW
Washington, D.C.
 
20004-2505
(Address of Principal Executive Offices)
 
(Zip Code)
(202) 729-5626
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
 
 
 
 
 






Item 2.02
Results of Operations and Financial Condition.
On February 6, 2019, The Carlyle Group L.P. issued a summary press release and a detailed earnings presentation announcing financial results for the fourth quarter and full year ended December 31, 2018. The summary press release and the earnings presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Report.
As provided in General Instruction B.2 of Form 8-K, the information in this Item 2.02 and Exhibits 99.1 and 99.2 incorporated in this Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information or Exhibits 99.1 and 99.2 be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits.
 
 
 
Exhibit No.
  
Description
 
 
99.1
  
 
 
99.2
  
 
 
 
 
  
 







SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
THE CARLYLE GROUP L.P.
 
 
 
 
 
 
 
 
By:
 
Carlyle Group Management L.L.C.,
 
 
 
 
 
 
its general partner
 
 
 
 
Date: February 6, 2019
 
 
 
By:
 
/s/ Curtis L. Buser
 
 
 
 
Name:
 
Curtis L. Buser
 
 
 
 
Title:
 
Chief Financial Officer



Exhibit


Exhibit 99.1
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=5 

The Carlyle Group Announces Fourth Quarter and Full Year 2018 Financial Results

Washington, DC, February 6, 2019 – Global investment firm The Carlyle Group L.P. (NASDAQ: CG) today reported its unaudited results for the fourth quarter and full year ended December 31, 2018.

Carlyle Co-CEOs Kewsong Lee and Glenn Youngkin said, “In 2018, Carlyle delivered a record level of Fee Related Earnings, raised over $33 billion in new capital, and produced attractive returns for our fund investors. We have strong momentum heading into 2019 as we continue to drive performance and growth.”

U.S. GAAP results for Q4 2018 and 2018 included income (loss) before provision for income taxes of $(79) million and $360 million, and net income (loss) attributable to The Carlyle Group L.P. common unitholders of $(16) million and $93 million, or net income per common unit of $(0.15) and $0.82, on a diluted basis. Total balance sheet assets were $13 billion as of December 31, 2018.

In addition to this release, Carlyle issued a full detailed presentation of its fourth quarter and full year 2018 results, which can be viewed on the investor relations section of our website at ir.carlyle.com.
Distributions
The Board of Directors has declared a quarterly distribution of $0.43 per common unit to holders of record at the close of business on February 19, 2019, payable on February 26, 2019. For full year 2018, the Board of Directors declared $1.34 in aggregate distributions to common unitholders.
The Board of Directors has declared a quarterly distribution of $0.367188 per preferred unit to preferred unitholders of record at the close of business on March 1, 2019, payable on March 15, 2019.
Conference Call
Carlyle will host a conference call at 8:30 a.m. EST on Wednesday, February 6, 2019, to announce its fourth quarter and full year 2018 financial results. The call may be accessed by dialing +1 (800) 850-2903 (U.S.) or +1 (253) 237-1169 (international) and referencing “The Carlyle Group Financial Results Call.” The conference call will be webcast simultaneously via a link on Carlyle’s investor relations website at ir.carlyle.com and an archived replay of the webcast also will be available on the website soon after the live call.


Page | 1



About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with $216 billion of assets under management across 343 investment vehicles as of December 31, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 31 offices across six continents.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, contingencies, our distribution policy, and other non-historical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements including, but not limited to, those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 15, 2018, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
This release does not constitute an offer for any Carlyle fund.
Contacts:
Public Market Investor Relations
  
Media
Daniel Harris
  
Elizabeth Gill
Phone: +1 (212) 813-4527
  
Phone: +1 (202) 729-5385
daniel.harris@carlyle.com
  
elizabeth.gill@carlyle.com
 
 
Web: www.carlyle.com
  
 
Videos: www.youtube.com/onecarlyle
  
 
Tweets: www.twitter.com/onecarlyle
  
 
Podcasts: www.carlyle.com/illuminate-commentary/podcasts

Page | 2
Exhibit
Exhibit 99.2

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=4

For Immediate Release
February 6, 2019

The Carlyle Group Announces Fourth Quarter and Full Year 2018 Financial Results

U.S. GAAP results included net income (loss) attributable to The Carlyle Group L.P. common unitholders of $(16) million and $93 million, or $(0.15) and $0.82 per common unit on a diluted basis, for Q4 2018 and 2018, respectively
Distributable Earnings of $211 million on a pre-tax basis for Q4 2018 and $674 million in 2018; Distributable Earnings per common unit of $0.57 in Q4 2018 and $1.78 in 2018, on a post-tax basis
Declared a quarterly distribution of $0.43 per common unit for Q4 2018; Aggregate distribution of $1.34 per common unit for 2018
Net accrued performance revenues of $1.7 billion as of Q4 2018, 2% lower than Q4 2017
Carry fund depreciation of -2% in Q4 2018 and appreciation of 9% in 2018
$4.9 billion of realized proceeds in Q4 2018 and $24.0 billion realized in 2018
$11.5 billion of invested capital in Q4 2018 and a record $22.4 billion invested in 2018
$7.1 billion of new capital raised in Q4 2018 and $33.1 billion in 2018
Washington, DC – Global investment firm The Carlyle Group L.P. (NASDAQ: CG) today reported its unaudited results for the fourth quarter and full year ended December 31, 2018.

Carlyle Co-CEOs Kewsong Lee and Glenn Youngkin said, “In 2018, Carlyle delivered a record level of Fee Related Earnings, raised over $33 billion in new capital, and produced attractive returns for our fund investors. We have strong momentum heading into 2019 as we continue to drive performance and growth.”

U.S. GAAP results for Q4 2018 and 2018 included income (loss) before provision for income taxes of $(79) million and $360 million, and net income (loss) attributable to The Carlyle Group L.P. common unitholders of $(16) million and $93 million, or net income per common unit of $(0.15) and $0.82, on a diluted basis. Total balance sheet assets were $13 billion as of December 31, 2018.




Page | 1



Carlyle Consolidated GAAP Results
 
The Carlyle Group L.P.
Summary U.S. GAAP Condensed Consolidated Statements of Operations (Unaudited)
 
 
Three Months Ended           
 
Year Ended
 
 
Dec 31, 2017
Mar 31, 2018
Jun 30, 2018
Sep 30, 2018
Dec 31, 2018
 
Dec 31, 2017
Dec 31, 2018
 
 
(Dollars in millions, except per unit data)
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
Fund management fees
 
$
279.3

$
264.5

$
301.3

$
328.8

$
377.4

 
$
1,026.9

$
1,272.0

Incentive fees
 
8.2

6.3

7.4

6.8

9.7

 
35.3

30.2

Investment income, including performance allocations
 
664.4

362.2

503.3

258.6

(314.9
)
 
2,290.6

809.2

Revenue from consolidated entities
 
45.1

47.3

53.6

60.5

53.1

 
286.7

214.5

All other revenues
 
10.8

22.5

28.0

24.4

26.4

 
36.7

101.3

Total revenues
 
1,007.8

702.8

893.6

679.1

151.7

 
3,676.2

2,427.2

 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
Cash-based compensation and benefits
 
181.6

187.3

176.0

186.6

196.8

 
652.7

746.7

Equity-based compensation
 
78.5

84.9

64.9

49.7

40.4

 
320.3

239.9

Performance allocations and incentive fee related compensation
 
276.5

158.0

222.0

146.0

(149.7
)
 
988.3

376.3

General, administrative and other expenses
 
105.9

95.0

126.8

166.2

72.7

 
276.8

460.7

Expenses from consolidated entities and loss on deconsolidation of Urbplan
 
36.7

35.9

45.3

40.5

42.9

 
400.1

164.6

Interest and other non-operating expense (income)
 
(54.4
)
18.2

18.7

26.6

19.8

 
(5.9
)
83.3

Total expenses
 
624.8

579.3

653.7

615.6

222.9

 
2,632.3

2,071.5

 
 
 
 
 
 
 
 
 
 
Net investment gains (losses) of consolidated funds
 
12.0

2.0

12.9

(2.9
)
(7.5
)
 
88.4

4.5

Income (loss) before provision for income taxes
 
395.0

125.5

252.8

60.6

(78.7
)
 
1,132.3

360.2

Provision (benefit) for income taxes
 
107.2

7.8

11.6

17.4

(5.5
)
 
124.9

31.3

Net income (loss)
 
287.8

117.7

241.2

43.2

(73.2
)
 
1,007.4

328.9

Net income (loss) attributable to non-controlling interests in consolidated entities
 
25.1

11.0

16.7

14.5

(8.3
)
 
72.5

33.9

Net income (loss) attributable to Carlyle Holdings
 
262.7

106.7

224.5

28.7

(64.9
)
 
934.9

295.0

Net income (loss) attributable to non-controlling interests in Carlyle Holdings
 
203.8

67.0

155.1

11.2

(54.8
)
 
690.8

178.5

Net income (loss) attributable to The Carlyle Group L.P.
 
58.9

39.7

69.4

17.5

(10.1
)
 
244.1

116.5

Net income attributable to Series A Preferred Unitholders
 
6.0

5.9

5.9

5.9

5.9

 
6.0

23.6

Net income (loss) attributable to The Carlyle Group L.P. Common Unitholders
 
$
52.9

$
33.8

$
63.5

$
11.6

$
(16.0
)
 
$
238.1

$
92.9

 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to The Carlyle Group L.P. per common unit
 
 
 
 
 
 
 
 
 
   Basic
 
$
0.53

$
0.34

$
0.62

$
0.11

$
(0.15
)
 
$
2.58

$
0.89

   Diluted
 
$
0.49

$
0.30

$
0.56

$
0.10

$
(0.15
)
 
$
2.38

$
0.82

 
 
 
 
 
 
 
 
 
 

Income (loss) before provision for income taxes(1) was $(79) million and $395 million for Q4 2018 and Q4 2017, respectively, and $360 million and $1,132 million for 2018 and 2017, respectively. The decrease in income before provision for income taxes in Q4 2018 compared to Q4 2017 was primarily due to a $553 million decrease in investment income, including performance allocations, net of related compensation. The decrease was partially offset by a $98 million increase in fund management fees due to the commencement of the investment period for certain newly raised funds, and a $33 million decrease in general, administrative and other expenses driven by net insurance recoveries.
As it relates to the full year, the decrease in income before provision for income taxes was primarily due to a $869 million decrease in investment income, including performance allocations, net of related compensation, as well as a $184 million increase in general, administrative and other expenses driven by a one-time lease assignment charge in 2018, lower insurance recoveries, and the reversal of certain litigation reserves in 2017. The decrease was partially offset by a $245 million increase in fund management fees due to the commencement of the investment period for certain newly raised funds, and a $71 million adjustment for the revaluation of the tax receivable agreement liability in 2017 related to the passage of the Tax Cuts and Jobs Act of 2017.
The loss before provision for income taxes for Q4 and the full year 2018 includes $58 million in income from our equity method investment in Fortitude Re, which closed in Q4 2018. This amount includes $46 million in gains from changes in fair value of embedded derivatives as a result of accounting principles related to derivatives and hedging (DIG B36 (2)).
Net income (loss) attributable to The Carlyle Group L.P. Common Unitholders was $(16) million or $(0.15) per common unit on a diluted basis for Q4 2018 and $93 million or $0.82 per common unit on a diluted basis for 2018. The provision for income taxes for Q4 2017 and the full year 2017 includes $113 million related to the revaluation of the net deferred tax assets resulting from the Tax Cuts and Jobs Act of 2017.



Page | 2



Non-GAAP Operating Results
Carlyle Group Summary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual
 
% Change    
$ in millions, except per unit data and where noted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q4 2017
 
Q1 2018
 
Q2 2018
 
Q3 2018
 
Q4 2018
 
2018
 
QoQ  
 
YoY
 
Annual
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings
 
$
26.7

 
$
28.2

 
$
57.8

 
$
89.0

 
$
175.4

 
$350.4
 
97%
 
557%
 
83%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings
 
155.8

 
138.9

 
114.5

 
210.0

 
210.5

 
673.9
 
0%
 
35%
 
1%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings, Tax and Per Unit Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings
 
$
155.8

 
$
138.9

 
$
114.5

 
$
210.0

 
$
210.5

 
$
673.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: Estimated foreign, state, and local taxes (1)
 
5.0

 
7.7

 
6.9

 
9.4

 
5.7

 
29.7

 
 
 
 
 
 
Less: Preferred unit distributions
 
6.0

 
5.9

 
5.9

 
5.9

 
5.9

 
23.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Distributable Earnings, After Taxes and Preferred Unit
   Distributions
 
$
144.8

 
$
125.3

 
$
101.7

 
$
194.7

 
$
198.9

 
$
620.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocating Distributable Earnings for only public unitholders of The Carlyle Group L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings to The Carlyle Group L.P.
 
$
43.3

 
$
38.5

 
$
31.8

 
$
62.0

 
$
64.4

 
$
196.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Less: Estimated current corporate income taxes (2)
 
(0.5
)
 
1.1

 
1.1

 
1.2

 
1.2

 
4.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings Attributable to Common
   Unitholders
 
$
43.8

 
$
37.4

 
$
30.7

 
$
60.8

 
$
63.2

 
$
192.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings, net, per The Carlyle Group L.P. common unit outstanding
 
$
0.44


$
0.36

 
$
0.29

 
$
0.56

 
$
0.57

 
$
1.78

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution per common unit
 
$
0.33

 
$
0.27

 
$
0.22

 
$
0.42

 
$
0.43

 
$
1.34

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Units (in millions):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Carlyle Group L.P. common units outstanding
 
100.1

 
101.4

 
102.1

 
107.8

 
107.7

 
107.7

 
 
 
 
 
 
Carlyle Holdings partnership units not held by
    The Carlyle Group L.P.
 
234.8

 
233.9

 
233.2

 
231.5

 
231.0

 
231.0

 
 
 
 
 
 
Total outstanding units
 
334.9

 
335.3

 
335.3

 
339.3

 
338.7

 
338.7

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Units eligible for distribution (in millions)*
 
100.5

 
103.7

 
106.2

 
108.3

 
110.5

 
110.5

 
 
 
 
 
 
* Units eligible for distributions include approximately 2.7 million common units that will be issued in February 2019 in connection with the vesting of deferred restricted common units. For purposes of this calculation, these common units have been added to the common units outstanding as of December 31, 2018 because they will participate in the unitholder distribution that will be paid on the common units in February 2019.
Totals may not sum due to rounding. See Notes at end of document.
 



Page | 3



Carry Fund Appreciation and Net Accrued Performance Revenues
Carlyle's carry fund portfolio depreciated (2)% during Q4 2018, but appreciated 9% in 2018. During Q4 2018, the public portfolio in our Corporate Private Equity, Real Assets and Global Credit carry funds depreciated (27)%, reflecting volatile global equity markets as well as particular weakness in public energy investments. Valuations for the private portfolio, which accounts for more than 90% of the remaining fair value, depreciated only (1)%. Investment Solutions carry funds appreciated 2% during Q4 2018 and 19% in 2018. Fourth quarter carry fund valuations were negatively impacted by movement in the NGP Energy and U.S. Buyout funds, partially offset by strength in our seventh U.S. Real Estate fund, first Equity Opportunities fund and third Europe Technology fund.
Net Accrued Performance Revenues were $1.7 billion as of Q4 2018, down 12% from the prior quarter, largely driven by the impact of fund valuations in the quarter. Compared to Q4 2017, the balance was down 2%, with performance revenue realizations slightly outpacing new accrual over the last twelve months.

 
 
Carry Fund Appreciation/(Depreciation)(1)
 
2018
 
Net Accrued
Performance Revenues
(2)
($ in millions)
 
 
Q4 2017
 
Q1 2018
 
Q2 2018
 
Q3 2018
 
Q4 2018
 
Q1 2018 - Q4 2018
 
Q4 2018
Overall Carry Fund Appreciation/(Depreciation)
 
5%
 
3%
 
5%
 
3%
 
(2)%
 
9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Private Equity
 
8%
 
4%
 
3%
 
1%
 
(2)%
 
5%
 
$1,069
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Assets
 
4%
 
2%
 
7%
 
3%
 
(7)%
 
5%
 
$475
Real Estate
 
3%
 
1%
 
5%
 
3%
 
(1)%
 
8%
 
$270
Natural Resources (3)
 
8%
 
2%
 
9%
 
3%
 
(7)%
 
6%
 
$224
Legacy Energy
 
2%
 
2%
 
4%
 
4%
 
(16)%
 
(5)%
 
$(19)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Credit Carry Funds
 
1%
 
2%
 
3%
 
1%
 
(2)%
 
5%
 
$51
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Solutions Carry Funds
 
3%
 
4%
 
8%
 
5%
 
2%
 
19%
 
$81
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Accrued Performance Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
$1,677


http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=6

The sum of quarters may not equal LTM due to rounding. See Notes at end of document.


Page | 4


Carlyle All Segment Results

Distributable Earnings were $211 million in Q4 2018 and $674 million in 2018. Q4 2018 Distributable Earnings included $175 million in Fee Related Earnings and $43 million in Realized Net Performance Revenues. DE per common unit was $0.57 for Q4 2018 and $1.78 for 2018.
Fee Related Earnings were $175 million in Q4 2018, up from $27 million in Q4 2017, and were $350 million for 2018, up from $192 million in 2017. During the fourth quarter, Fee Related Earnings were positively impacted by several items that we would not expect to recur at these levels, including $32 million in insurance recoveries related to our former commodities business, $25 million in transaction fees related to a few large investments, $21 million of catch-up management fees and other incremental revenue, as well as $10 million from lower G&A expenses. Adjusting for the impact of these items, Fee Related Earnings for Q4 2018 would be approximately $90 million.
Realized Net Performance Revenues were $43 million in Q4 2018, and $320 million in 2018, down from $553 million in 2017. Realized Proceeds of $24.0 billion in 2018 were below the $26.0 billion in 2017, and a higher percentage of 2018 realization activity originated from funds accruing, but not yet realizing performance revenues, compared to 2017.
Total Assets Under Management (“AUM”) of $216.5 billion increased 11% compared to Q4 2017 through a combination of $33.1 billion in fundraising and fund appreciation, partially offset by $24.0 billion in realized proceeds to fund investors.
Fee-earning AUM of $159.6 billion increased 28% from Q4 2017, driven by fee activations for our latest generation U.S., Europe and Asia buyout funds during 2018. As of year-end 2018, there was $6.5 billion in pending Fee-earning AUM that will turn on fees either through the activation of the underlying fund or additional capital deployment.
 
Business Drivers
 
 
 
 
 
 
 
 
 
 
 
 
$ in billions, unless noted
 
Q4 2017
 
Q4 2018
 
2017
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
Fundraising
 
24.7
 
$7.1
 
$43.3
 
$33.1
 
 
 
 
 
 
 
 
 
 
 
 
Invested Capital (carry funds)
 
7.2
 
11.5
 
22.0
 
22.4
 
 
 
 
 
 
 
 
 
 
 
 
Realized Proceeds (carry funds)
 
8.0
 
4.9
 
26.0
 
24.0
 
 
 
 
 
 
 
 
 
 
 
 
Carry Fund Appreciation
 
5%
 
(2)%
 
20%
 
9%
 
 
 
 
 
 
 
 
 
 
 
 
Financial Metrics
 
 
 
 
 
 
 
 
 
 
 
 
$ in millions
 
Q4 2017
 
Q4 2018
 
2017
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings (FRE)
 
$27
 
$175
 
$192
 
$350
 
 
 
 
 
 
 
 
 
 
 
 
+
Realized Net Performance Revenues
 
118
 
43
 
553
 
320
 
 
 
 
 
 
 
 
 
 
 
 
+
Realized Principal Investment Income
 
22
 
5
 
(26)
 
48
 
 
 
 
 
 
 
 
 
 
 
 
+
Net Interest
 
(12)
 
(13)
 
(49)
 
(44)
 
 
 
 
 
 
 
 
 
 
 
 
=
Distributable Earnings (DE)
 
$156
 
$211
 
$670
 
$674
 
 
 
 
 
 
 
 
 
 
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=7
LTM, or last twelve months, refers to the period Q1 2018 through Q4 2018. Prior LTM, or the prior rolling 12-month period, refers to the period Q1 2017 through Q4 2017. Totals may not sum due to rounding.

Page | 5



Corporate Private Equity (CPE)

Distributable Earnings were $103 million in Q4 2018 and $350 million in 2018. Q4 2018 Distributable Earnings included $89 million in Fee Related Earnings and $18 million in Realized Net Performance Revenues.
Fee Related Earnings were $89 million in Q4 2018, compared to a loss of $17 million in Q4 2017, and totaled $124 million in 2018, up from $26 million in 2017. Management fees were $196 million in Q4 2018, up 64% compared to Q4 2017, driven by fee activations in our latest generation large buyout funds over the last several quarters. Fee Related Earnings were positively impacted by $23 million in transaction fees in the quarter, as well as a higher fee rate on our fourth Europe buyout fund, that stepped down to a lower rate as of January 1, 2019.
Realized Net Performance Revenues were $18 million in Q4 2018 and $221 million in 2018, down from $459 million in 2017. Realized Proceeds were $8.8 billion in 2018, lower than the $11.2 billion realized in 2017, with a larger portion of 2018 realizations coming from funds that are accruing, but not yet realizing performance revenues.
Invested $7.8 billion in Q4 2018 into 25 different investments. For 2018 overall, CPE invested a record $11.3 billion, surpassing the $11.1 billion deployed in 2017. Notable investments during Q4 2018 included Nouryon (CP VII, CEP IV/V) and Sedgwick (CP VII, CGFSP III).
Assets Under Management of $80.8 billion increased 11% from Q4 2017, positively impacted by $17.0 billion of fundraising and offset by $8.8 billion of realizations over the last twelve months. Fee-earning Assets Under Management of $62.4 billion increased 75% from Q4 2017, as we activated fees for our latest U.S., Europe and Asia buyout funds during 2018.

 
Business Drivers
 
 
 
 
 
 
 
 
 
 
 
 
$ in billions, unless noted
 
Q4 2017
 
Q4 2018
 
2017
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
Fundraising
 
$19.1
 
$2.4
 
$20.5
 
$17.0
 
 
 
 
 
 
 
 
 
 
 
 
Invested Capital (carry funds)
 
3.6
 
7.8
 
11.1
 
11.3
 
 
 
 
 
 
 
 
 
 
 
 
Realized Proceeds (carry funds)
 
3.4
 
1.7
 
11.2
 
8.8
 
 
 
 
 
 
 
 
 
 
 
 
Carry Fund Appreciation
 
8%
 
(2)%
 
32%
 
5%
 
 
 
 
 
 
 
 
 
 
 
 
Financial Metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
$ in millions
 
Q4 2017
 
Q4 2018
 
2017
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings (FRE)
 
$(17)
 
$89
 
$26
 
$124
 
 
 
 
 
 
 
 
 
 
 
 
+
Realized Net Performance Revenues
 
85
 
18
 
459
 
221
 
 
 
 
 
 
 
 
 
 
 
 
+
Realized Principal Investment Income
 
10
 
2
 
25
 
27
 
 
 
 
 
 
 
 
 
 
 
 
+
Net Interest
 
(5)
 
(7)
 
(22)
 
(21)
 
 
 
 
 
 
 
 
 
 
 
 
=
Distributable Earnings (DE)
 
$73
 
$103
 
$488
 
$350
 
 
 
 
 
 
 
 
 
 
 

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=8
Totals may not sum due to rounding.

Page | 6



Real Assets

Distributable Earnings were $56 million in Q4 2018 and $207 million in 2018. Q4 2018 Distributable Earnings included $37 million of Fee Related Earnings and $19 million of Realized Net Performance Revenues.
Fee Related Earnings were $37 million in Q4 2018, up slightly from $34 million in Q4 2017, and totaled $121 million in 2018, up from $52 million in 2017. Management fees were $89 million in Q4 2018, up 13% from $78 million in Q4 2017. Catch-up management fees in Q4 2018 were $12 million, compared to $3 million in Q4 2017.
Realized Net Performance Revenues were $19 million in Q4 2018 and $84 million in 2018, up from $50 million in 2017, driven in part by initial carry realization events in our seventh U.S. Real Estate fund. Realized Proceeds were $5.1 billion in 2018, up from $4.5 billion in 2017.
Invested $1.7 billion in the quarter and $5.2 billion in 2018, up from $4.4 billion 2017. During Q4 2018, Natural Resources invested $1.0 billion and Real Estate invested approximately $600 million.
Assets Under Management of $45.6 billion increased 6% compared to Q4 2017, driven by fundraising of $5.7 billion during 2018. Fundraising of $2.6 billion in Q4 2018 includes the first closing for our second international energy fund. Fee-earning Assets Under Management of $33.0 billion increased 4% compared to Q4 2017.

 
Business Drivers
 
 
 
 
 
 
 
 
 
 
 
 
$ in billions, unless noted
 
Q4 2017
 
Q4 2018
 
2017
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
Fundraising
 
$3.2
 
$2.6
 
$10.2
 
$5.7
 
 
 
 
 
 
 
 
 
 
 
 
Invested Capital (carry funds)
 
1.6
 
1.7
 
4.4
 
5.2
 
 
 
 
 
 
 
 
 
 
 
 
Realized Proceeds (carry funds)
 
1.3
 
0.9
 
4.5
 
5.1
 
 
 
 
 
 
 
 
 
 
 
 
Carry Fund Appreciation
 
4%
 
(7)%
 
19%
 
5%
 
 
 
 
 
 
 
 
 
 
 
 
Financial Metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
$ in millions
 
Q4 2017
 
Q4 2018
 
2017
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings (FRE)
 
$34
 
$37
 
$52
 
$121
 
 
 
 
 
 
 
 
 
 
 
 
+
Realized Net Performance Revenues
 
10
 
19
 
50
 
84
 
 
 
 
 
 
 
 
 
 
 
 
+
Realized Principal Investment Income
 
9
 
2
 
(63)
 
14
 
 
 
 
 
 
 
 
 
 
 
 
+
Net Interest
 
(3)
 
(2)
 
(14)
 
(11)
 
 
 
 
 
 
 
 
 
 
 
 
=
Distributable Earnings (DE)
 
$50
 
$56
 
$25
 
$207
 
 
 
 
 
 
 
 
 
 
 

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=9

Totals may not sum due to rounding.

Page | 7



Global Credit

Distributable Earnings were $43 million in Q4 2018 and $78 million for 2018. Q4 2018 Distributable Earnings were substantially driven by $42 million of Fee Related Earnings.
Fee Related Earnings were $42 million in Q4 2018, up from $1 million in Q4 2017, and included $32 million of net insurance recoveries in Q4 2018. Q4 2018 management fees of $64 million increased 26% from Q4 2017.
Realized Net Performance Revenues were $2 million in Q4 2018 and $5 million in 2018, down from $40 million in 2017.
Invested $0.4 billion in Global Credit carry funds in the quarter and $1.2 billion in 2018. Direct lending originated gross new loans of approximately $635 million in the quarter and $2.2 billion in 2018. Our structured credit team raised CLO par value of $1.0 billion in the quarter and $4.6 billion in 2018.
Assets Under Management of $44.4 billion increased 33% and Fee-earning Assets Under Management of $35.2 billion increased 29% compared to Q4 2017, both driven by $6.3 billion of fundraising and the acquisition of Carlyle Aviation Partners.
On December 19, 2018, Carlyle completed its previously announced acquisition of Carlyle Aviation Partners. The acquisition added $5.8 billion in Assets Under Management and $4.1 billion of Fee-earning Assets Under Management as of Q4 2018. The acquisition had an immaterial impact on Q4 2018 Fee Related Earnings and Distributable Earnings.
 
Business Drivers
 
 
 
 
 
 
 
 
 
 
 
 
$ in billions, unless noted
 
Q4 2017
 
Q4 2018
 
2017
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
Fundraising
 
$1.7
 
$1.4
 
$6.6
 
$6.3
 
 
 
 
 
 
 
 
 
 
 
 
Invested Capital (carry funds)
 
0.8
 
0.4
 
2.1
 
1.2
 
 
 
 
 
 
 
 
 
 
 
 
Realized Proceeds (carry funds)
 
0.3
 
0.2
 
0.6
 
0.8
 
 
 
 
 
 
 
 
 
 
 
 
Carry Fund Appreciation
 
1%
 
(2)%
 
11%
 
5%
 
 
 
 
 
 
 
 
 
 
 
 
Financial Metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
$ in millions
 
Q4 2017
 
Q4 2018
 
2017
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings (FRE)
 
$1
 
$42
 
$82
 
$72
 
 
 
 
 
 
 
 
 
 
 
 
+
Realized Net Performance Revenues
 
21
 
2
 
40
 
5
 
 
 
 
 
 
 
 
 
 
 
 
+
Realized Principal Investment Income
 
3
 
1
 
12
 
8
 
 
 
 
 
 
 
 
 
 
 
 
+
Net Interest
 
(2)
 
(2)
 
(7)
 
(8)
 
 
 
 
 
 
 
 
 
 
 
 
=
Distributable Earnings (DE)
 
$23
 
$43
 
$127
 
$78
 
 
 
 
 
 
 
 
 
 
 

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=10

Totals may not sum due to rounding.

Page | 8



Investment Solutions

Distributable Earnings were $9 million in Q4 2018 and $39 million in 2018. Q4 2018 Distributable Earnings were driven by $7 million of Fee Related Earnings and $4 million of Realized Net Performance Revenues.
Fee Related Earnings were $7 million in Q4 2018, down from $9 million in Q4 2017, and totaled $34 million for 2018, up from $32 million in 2017. Management fees were $42 million in Q4 2018, in line with Q4 2017. Fee-earning Assets Under Management of $29.1 billion were down 4% compared to Q4 2017, reflecting the continued runoff of legacy commitments at AlpInvest, partially offset by new capital and investment activity.
Realized Net Performance Revenues of $4 million in Q4 2018 were up from $2 million in Q4 2017, and totaled $10 million in 2018 compared to $3 million in 2017, reflecting an increasing share of performance revenues accruing to Carlyle over time.
Invested $1.6 billion in Investment Solutions carry funds and vehicles during Q4 2018 and $4.7 billion in 2018, slightly higher than 2017.
Assets Under Management of $45.7 billion decreased 1% compared to Q4 2017, largely attributable to $9.4 billion of realized proceeds over the last twelve months. Fundraising of $4.2 billion in 2018 was driven by more than $3 billion raised across the AlpInvest platform, as well as Metropolitan's latest Secondaries program, which closed with $1.2 billion of total commitments.
 
Business Drivers
 
 
 
 
 
 
 
 
 
 
 
 
$ in billions, unless noted
 
Q4 2017
 
Q4 2018
 
2017
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
Fundraising
 
$0.7
 
$0.6
 
$5.9
 
$4.2
 
 
 
 
 
 
 
 
 
 
 
 
Invested Capital (carry funds)
 
1.2
 
1.6
 
4.4
 
4.7
 
 
 
 
 
 
 
 
 
 
 
 
Realized Proceeds (carry funds)
 
2.9
 
2.2
 
9.6
 
9.4
 
 
 
 
 
 
 
 
 
 
 
 
Carry Fund Appreciation
 
3%
 
2%
 
10%
 
19%
 
 
 
 
 
 
 
 
 
 
 
 
Financial Metrics
 
 
 
 
 
 
 
 
 
 
 
 
$ in millions
 
Q4 2017
 
Q4 2018
 
2017
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings (FRE)
 
$9
 
$7
 
$32
 
$34
 
 
 
 
 
 
 
 
 
 
 
 
+
Realized Net Performance Revenues
 
2
 
4
 
3
 
10
 
 
 
 
 
 
 
 
 
 
 
 
+
Realized Principal Investment Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
+
Net Interest
 
(1)
 
(2)
 
(5)
 
(5)
 
 
 
 
 
 
 
 
 
 
 
 
=
Distributable Earnings (DE)
 
$10
 
$9
 
$30
 
$39
 
 
 
 
 
 
 
 
 
 
 

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=11

Totals may not sum due to rounding. See Notes at end of document.

Page | 9



Fund Activity Metrics ($ in billions)
By Quarter
 
By Sub-segment
Fundraising
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=12
Invested Capital (Carry Funds only)
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=13
Realized Proceeds (Carry Funds only)
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=14

Totals may not sum due to rounding.


Page | 10




Assets Under Management and Remaining Fair Value of Capital
 
Assets Under Management of $216.5 billion increased 11% compared to $195.1 billion in Q4 2017. During Q4 2018, the acquisition of Carlyle Aviation Partners added $5.8 billion to AUM, which helped drive a 33% increase in Global Credit AUM during 2018. The remaining fair value of $79 billion in our Corporate Private Equity, Real Assets and Global Credit carry funds was up 11% compared to Q4 2017.
 
 
 
vs. Last Quarter
 
vs. One Year Ago
$ in billions, unless noted
Q4 2018
 
Q3 2018
 
%
 
Q4 2017
 
%
 
 
 
 
 
 
 
 
 
 
Corporate Private Equity
80.8
 
81.6
 
(1)%
 
72.6
 
11%
Real Assets
45.6
 
46.0
 
(1)%
 
42.9
 
6%
Global Credit
44.4
 
37.4
 
19%
 
33.3
 
33%
Investment Solutions
45.7
 
47.3
 
(3)%
 
46.3
 
(1)%
Total
216.5
 
212.3
 
2%
 
195.1
 
11%
 
 
 
 
 
 
 
 
 
 


http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=15


http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=16

Data as of December 31, 2018. Totals may not sum due to rounding. See Notes and definitions of AUM roll forward components at end of document.



Page | 11



Fee-earning Assets Under Management

Fee-earning Assets Under Management of $159.6 billion increased 28% from Q4 2017. This amount excludes the positive impact of pending Fee-earning Assets Under Management, which was $6.5 billion as of Q4 2018. During Q4 2018, the acquisition of Carlyle Aviation Partners added $4.1 billion to Fee-earning AUM, which helped drive a 29% increase in Global Credit Fee-earning AUM during 2018.
 
 
 
vs. Last Quarter
 
vs. One Year Ago
$ in billions, unless noted
Q4 2018
 
Q3 2018
 
%
 
Q4 2017
 
%
 
 
 
 
 
 
 
 
 
 
Corporate Private Equity
62.4
 
56.3
 
11%
 
35.6
 
75%
Real Assets
33.0
 
31.6
 
4%
 
31.6
 
4%
Global Credit
35.2
 
30.1
 
17%
 
27.3
 
29%
Investment Solutions
29.1
 
29.5
 
(1)%
 
30.2
 
(4)%
Total
159.6
 
147.4
 
8%
 
124.6
 
28%
 
 
 
 
 
 
 
 
 
 

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12678577&doc=17

Data as of December 31, 2018. Totals may not sum due to rounding.
Balance Sheet Highlights
Key Balance Sheet Items (1) ($ in millions)
December 31, 2018
Cash, Cash Equivalents and Corporate Treasury Investments (2)
$681.3
Net accrued performance revenues (3)
$1,676.5
Investments attributable to Carlyle unitholders (4), (5)
$1,515.1
Debt obligations (4)
$1,550.4
Amounts drawn on revolving credit line ($750 million capacity)
$—
5.875% Series A Preferred Units
$387.5
During Q4 2018, Carlyle repurchased and retired approximately 1.1 million units for an aggregate purchase price of $20 million as part of its unit repurchase program. Year-to-date through December 31, 2018, Carlyle repurchased and retired 4.9 million units for an aggregate purchase price of $108 million. In December 2018, Carlyle's Board of Directors authorized the repurchase of $200 million of units, inclusive of amounts remaining under the initial repurchase program. Therefore as of December 31, 2018, we had $200 million remaining in our repurchase authorization.

(1)
The amounts presented exclude the effect of U.S. GAAP consolidation eliminations on investments and accrued performance revenues, as well as cash and debt associated with Carlyle’s consolidated funds.
(2)
Corporate treasury investments represent investments in U.S. Treasury and government agency obligations, commercial paper, certificates of deposit, other investment grade securities and other investments with maturities of greater than three months when purchased.
(3)
Net accrued performance revenues as of December 31, 2018 are net of $63.2 million in accrued giveback obligations and $1,840.2 million in accrued performance allocations and incentive fee compensation related to non-controlling interests.
(4)
Excludes the impact of approximately $309.9 million of loans used to finance investments in CLOs.
(5)
Investments include the $414.0 million investment in Fortitude Re, excluding the impact of unrealized gains on embedded derivatives included in Fortitude Re's U.S. GAAP financial statements, and exclude the equity investments by Carlyle in NGP Energy Capital Management.

Page | 12



Distributions
The Board of Directors has declared a quarterly distribution of $0.43 per common unit to holders of record at the close of business on February 19, 2019, payable on February 26, 2019. For full year 2018, the Board of Directors declared $1.34 in aggregate distributions to common unitholders.
The Board of Directors has declared a quarterly distribution of $0.367188 per preferred unit to preferred unitholders of record at the close of business on March 1, 2019, payable on March 15, 2019.
Conference Call
Carlyle will host a conference call at 8:30 a.m. EST on Wednesday, February 6, 2019, to announce its fourth quarter and full year 2018 financial results. The call may be accessed by dialing +1 (800) 850-2903 (U.S.) or +1 (253) 237-1169 (international) and referencing “The Carlyle Group Financial Results Call.” The conference call will be webcast simultaneously via a link on Carlyle’s investor relations website at ir.carlyle.com and an archived replay of the webcast also will be available on the website soon after the live call.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with $216 billion of assets under management across 343 investment vehicles as of December 31, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 31 offices across six continents.
Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/illuminate-commentary/podcasts
Contacts:
Public Market Investor Relations    Media
Daniel Harris    Elizabeth Gill
Phone: +1 (212) 813-4527    Phone: +1 (202) 729-5385
daniel.harris@carlyle.com    elizabeth.gill@carlyle.com


Forward Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, contingencies, our distribution policy, and other non-historical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements including, but not limited to, those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 15, 2018, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
This release does not constitute an offer for any Carlyle fund.



Page | 13




The Carlyle Group L.P.
GAAP Statement of Operations (Unaudited)
 
 
 
Three Months Ended           
 
Year Ended
 
 
Dec 31,
2017
 
Dec 31,
2018
 
Dec 31,
2017
 
Dec 31,
2018
 
 
(Dollars in millions, except unit and per unit data)
Revenues
 
 
 
 
 
 
 
 
Fund management fees
 
$
279.3

 
$
377.4

 
1,026.9

 
1,272.0

Incentive fees
 
8.2

 
9.7

 
35.3

 
30.2

Investment income (loss)
 
 
 
 
 
 
 
 
Performance allocations
 
574.9

 
(324.5
)
 
2,058.6

 
622.9

Principal investment income
 
89.5

 
9.6

 
232.0

 
186.3

Total investment income
 
664.4

 
(314.9
)
 
2,290.6

 
809.2

Interest and other income
 
10.8

 
26.4

 
36.7

 
101.3

Interest and other income of Consolidated Funds
 
45.1

 
53.1

 
177.7

 
214.5

Revenue of a real estate VIE
 

 

 
109.0

 

Total revenues
 
1,007.8

 
151.7

 
3,676.2

 
2,427.2

 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
Compensation and benefits
 
 
 
 
 
 
 
 
Cash-based compensation and benefits
 
181.6

 
196.8

 
652.7

 
746.7

Equity-based compensation
 
78.5

 
40.4

 
320.3

 
239.9

Performance allocations and incentive fee related compensation
 
276.5

 
(149.7
)
 
988.3

 
376.3

Total compensation and benefits
 
536.6

 
87.5

 
1,961.3

 
1,362.9

General, administrative and other expenses
 
105.9

 
72.7

 
276.8

 
460.7

Interest
 
17.1

 
19.6

 
65.5

 
82.2

Interest and other expenses of Consolidated Funds
 
36.7

 
42.9

 
197.6

 
164.6

Interest and other expenses of a real estate VIE
 

 

 
202.5

 

Other non-operating (income) expense
 
(71.5
)
 
0.2

 
(71.4
)
 
1.1

Total expenses
 
624.8

 
222.9

 
2,632.3

 
2,071.5

 
 
 
 
 
 
 
 
 
Other income