The Carlyle Group Announces First Quarter 2012 Earnings Results
- Strong pace of Distributions and Distributable Earnings continues
-
$3.8 billion in proceeds for fund level investors -
$0.57 per unit in pro forma Distributable Earnings in the first quarter 2012 -
9% increase in carry fund portfolio in the first quarter 2012 with
appreciation across all segments, driving a pro forma Economic Net
Income of
$401 million -
5% increase in Fee-Earning AUM in the first quarter 2012 to
$117 billion ; 8% increase in Assets Under Management in the first quarter 2012 to$159 billion -
$629 million in U.S. GAAP net income attributable toCarlyle Group , or$299 million on a pro forma basis
Carlyle generated strong Distributable Earnings (DE) of
Economic Net Income (ENI) for the first quarter 2012 was
During the first quarter 2012, Carlyle generated realized proceeds of
U.S. GAAP results for the first quarter included Net Income attributable
to
The following table highlights key metrics across all business segments
and assets under management for
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Period | Pro forma (1) | LTM | % Change | |||||||||||||||||||||
$ in millions, except where noted | 1Q2011 | 2Q2011 | 3Q2011 | 4Q2011 | 1Q2012 | 1Q2012 | 2Q11 - 1Q12 | QoQ | YoY | ||||||||||||||||
Revenues | $ | 1,152 | $ | 595 | $ | (263 | ) | $ | 666 | $ | 894 | $ | 1,892 | 34% | (22%) | ||||||||||
Expenses | 618 | 359 | (72 | ) | 411 | 501 | 1,199 | 22% | (19%) | ||||||||||||||||
Economic Net Income | 533 | 237 | (191 | ) | 254 | 392 | 401 | 692 | 54% | (26%) | |||||||||||||||
Fee-Related Earnings | 40 | 31 | 37 | 14 | 34 | 39 | 116 | 146% | (15%) | ||||||||||||||||
Net Performance Fees | 440 | 191 | (223 | ) | 223 | 335 | 526 | 50% | (24%) | ||||||||||||||||
Net Realized Performance Fees | 214 | 53 | 194 | 216 | 143 | 606 | (34%) | (33%) | |||||||||||||||||
Distributable Earnings | 284 | 89 | 244 | 247 | 179 | 189 | 759 | (28%) | (37%) | ||||||||||||||||
Total Assets Under Management ($ billion) | 107.5 | 107.9 | 148.6 | 147.0 | 159.2 | 8% | 48% | ||||||||||||||||||
Fee-Earning Assets Under Management ($ billion) | 81.6 | 80.3 | 112.6 | 111.0 | 117.0 | 5% | 43% | ||||||||||||||||||
Equity Invested ($ billion) (4) | 4.7 | 1.6 | 2.1 | 2.9 | 1.5 | 8.1 | (47%) | (67%) | |||||||||||||||||
Funds Raised ($ billion) (2) | 1.4 | 2.8 | 1.4 | 1.1 | 2.0 | 7.3 | 82% | 43% | |||||||||||||||||
Distributions ($ billion) (3,4) | 7.7 | 4.5 | 2.9 | 3.7 | 2.5 | 13.6 | (33%) | (68%) | |||||||||||||||||
(1) The selected pro forma non-GAAP financial measures for the three
months ended |
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and Offering Transactions described in our final Prospectus dated
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(2) Funds raised excludes the impact of acquisitions. In 1Q2012,
Carlyle acquired CLO collateral of |
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(3) Distributions are based on when proceeds are actually
distributed to the Limited Partners, which may differ from when
they are realized. For 1Q 2012, approximately |
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(4) Equity invested and Distributions reflect activity in carry funds only. | |||||||||||||||||||||||||
Fee-Earning Assets Under Management (Fee-Earning AUM) increased 5%
during the quarter to
Total Assets Under Management (AUM) increased 8% compared with the
fourth quarter 2011, to
Quarterly fund valuations appreciated 9% across the Carlyle carry fund
platform, with significant strength in Corporate Private Equity buyout
funds, Energy funds and Global Market Strategies carry funds. Over the
past 12-months, our carry funds have appreciated 15%. As of
On a pro forma basis, taking into consideration changes related to the IPO, our non-GAAP results for the first quarter 2012 are provided in the table below:
Carlyle Group Pro Forma Summary | |||
$ in millions, except per unit amounts | |||
Economic Net income | First Quarter 2012 | ||
Economic Net Income (pre-tax) | $ | 400.8 | |
Less: Provision for Income Taxes (1) | 63.5 | ||
Pro Forma Economic Net Income, After Taxes | 337.3 | ||
Fully diluted units (in millions) | 306.3 | ||
Pro Forma Economic Net Income, After Taxes per Adjusted Unit | $ | 1.10 | |
Distributable Earnings | |||
Pro Forma Distributable Earnings | $ | 189.1 | |
Less: Estimated foreign, state, and local taxes (2) | 6.2 | ||
Pro Forma Distributable Earnings, After Taxes | 182.9 | ||
Allocating DE for only public unit holders of |
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Pro Forma Distributable Earnings to |
$ | 18.3 | |
Less: Estimated current corporate income taxes (3) | 0.9 | ||
Pro Forma Distributable Earnings to |
17.4 | ||
Units in public float (in millions) | 30.5 | ||
Pro Forma Distributable Earnings, net, per |
$ | 0.57 | |
(1) Represents the implied provision for income taxes that was
calculated using a similar methodology applied in calculating the
pro forma tax provision for |
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(2) Represents the implied provision for current income taxes that
was calculated using a similar methodology applied in calculating
the pro forma current tax provision for |
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(3) Represents pro forma current corporate income taxes payable upon
distributable earnings allocated to |
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Segment Review
All financial figures presented in the segment level results are provided as actual results and not pro forma for the initial public offering.
Corporate Private Equity (CPE)
The Corporate Private Equity segment comprises Carlyle's operations that advise a diverse group of 26 funds that invest in buyout and growth capital transactions. The funds focus on either a particular geography or a particular industry.
Corporate Private Equity generated total revenue of
The carry funds in Corporate Private Equity appreciated 8% in the
quarter versus year-end 2011, driven by a 9% increase in buyout fund
valuations and a 5% increase in growth fund valuations. During the
quarter, CPE invested
The Multiple of
Total Fee-Earning Assets Under Management of
Corporate Private Equity (Actual Results) |
Period | LTM | % Change | ||||||||||||||||||
$ in millions, except where noted | 1Q2011 | 2Q2011 | 3Q2011 | 4Q2011 | 1Q2012 | 2Q11 - 1Q12 | QoQ | YoY | |||||||||||||
Economic Net Income | 375 | 163 | (185 | ) | 162 | 244 | 384 | 51% | (35%) | ||||||||||||
Net Performance Fees | 312 | 135 | (186 | ) | 152 | 215 | 316 | 41% | (31%) | ||||||||||||
Net Realized Performance Fees | 160 | 19 | 157 | 130 | 105 | 411 | (19%) | (34%) | |||||||||||||
Distributable Earnings | 220 | 39 | 173 | 134 | 120 | 466 | (10%) | (45%) | |||||||||||||
Total Assets Under Management ($ billion) | 55.4 | 55.8 | 51.0 | 51.1 | 53.3 | 4% | (4%) | ||||||||||||||
Fee-Earning Assets Under Management ($ billion) | 39.2 | 39.3 | 38.6 | 38.0 | 37.8 | (1%) | (4%) | ||||||||||||||
Equity Invested ($ billion) | 3.8 | 0.6 | 1.4 | 1.7 | 0.7 | 4.4 | (60%) | (82%) | |||||||||||||
Funds Raised ($ billion) | 0.4 | 0.4 | 0.3 | 0.5 | 0.3 | 1.5 | (37%) | (22%) | |||||||||||||
Distributions ($ billion) (1) | 5.1 | 3.1 | 1.9 | 2.4 | 1.5 | 8.9 | (36%) | (70%) | |||||||||||||
Carry Fund Appreciation/(Depreciation) (2) |
10% |
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5% |
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(6%) |
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7% |
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8% |
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(1) Distributions are based on when proceeds are actually
distributed to the Limited Partners, which may differ from when they
are realized. For 1Q 2012, approximately |
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(2) |
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Global Market Strategies (GMS)
The Global Market Strategies segment advises a group of funds that pursue investment opportunities across structured credit, distressed debt, corporate and energy mezzanine debt, middle-market and senior debt, as well as credit and emerging markets hedge funds.
Global Market Strategies generated total revenue of
Distributable Earnings of
During the quarter, Global Markets Strategies invested
Fee-Earning Assets Under Management of
Global Markets Strategies (Actual Results) | Period | LTM | % Change | ||||||||||||||||||
$ in millions, except AUM where noted | 1Q2011 | 2Q2011 | 3Q2011 | 4Q2011 | 1Q2012 | 2Q11 - 1Q12 | QoQ | YoY | |||||||||||||
Economic Net Income | 62 | 43 | 34 | 22 | 38 | 137 | 72% | (38%) | |||||||||||||
Net Performance Fees | 33 | 24 | 11 | 3 | 18 | 56 | 450% | (47%) | |||||||||||||
Net Realized Performance Fees | 15 | 27 | 7 | 67 | 15 | 116 | (78%) | (5%) | |||||||||||||
Distributable Earnings | 27 | 43 | 32 | 90 | 31 | 196 | (65%) | 15% | |||||||||||||
Total Assets Under Management ($ billion) | 20.9 | 20.5 | 23.0 | 24.5 | 28.3 | 15% | 35% | ||||||||||||||
Fee-Earning Assets Under Management ($ billion) | 19.1 | 18.4 | 21.4 | 23.2 | 26.8 | 16% | 40% | ||||||||||||||
Equity Invested ($ billion, carry funds only) | 0.3 | 0.1 | 0.1 | 0.3 | 0.1 | 0.6 | (66%) | (66%) | |||||||||||||
Funds Raised ($ billion, carry funds only) | 0.8 | 1.3 | 0.4 | 0.0 | 1.3 | 3.0 | NM | 66% | |||||||||||||
Hedge Fund Net Inflows ($ billion) | 0.2 | 0.0 | 0.5 | 0.8 | 0.7 | 2.0 | (14%) | 214% | |||||||||||||
Distributions ($ billion, carry funds only) | 0.5 | 0.3 | 0.0 | 0.3 | 0.4 | 1.0 | 19% | (28%) | |||||||||||||
Carry Fund Appreciation/Depreciation (2) | 12% | 4% | (12%) | 5% | 12% | ||||||||||||||||
(1) Distributions are based on when proceeds are actually
distributed to the Limited Partners, which may differ from when
they are realized. For 1Q 2012, approximately |
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(2) |
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Real Assets (RA)
The Real Assets segment comprises Carlyle's operations that advise 17 U.S. and international funds focused on real estate, infrastructure, energy and renewable energy transactions.
Real Assets generated total revenue of
The Real Assets funds appreciated 11% sequentially versus the fourth
quarter 2011, driven by a 14% increase in energy funds and a 5% increase
in Real Estate funds. During the quarter, Real Assets invested
The Multiple of
Total Fee-Earning Assets Under Management of
Real Assets (Actual Results) |
Period | LTM | % Change | ||||||||||||||||||
$ in millions, except where noted | 1Q2011 | 2Q2011 | 3Q2011 | 4Q2011 | 1Q2012 | 2Q11 - 1Q12 | QoQ | YoY | |||||||||||||
Economic Net Income | 97 | 31 | (48 | ) | 64 | 101 | 148 | 58% | 4% | ||||||||||||
Net Performance Fees | 95 | 31 | (47 | ) | 67 | 99 | 150 | 48% | 4% | ||||||||||||
Net Realized Performance Fees | 39 | 7 | 27 | 17 | 22 | 73 | 34% | (43%) | |||||||||||||
Distributable Earnings | 36 | 7 | 27 | 14 | 22 | 70 | 49% | (41%) | |||||||||||||
Total Assets Under Management ($ billion) | 31.2 | 31.6 | 30.4 | 30.7 | 32.2 | 5% | 3% | ||||||||||||||
Fee-Earning Assets Under Management ($ billion) | 23.3 | 22.6 | 22.4 | 22.2 | 22.8 | 3% | (2%) | ||||||||||||||
Equity Invested ($ billion) | 0.6 | 0.9 | 0.6 | 0.9 | 0.7 | 3.1 | (17%) | 25% | |||||||||||||
Funds Raised ($ billion) | 0.2 | 0.6 | 0.7 | 0.6 | 0.1 | 2.0 | (91%) | (73%) | |||||||||||||
Distributions ($ billion) (1) | 2.1 | 1.1 | 1.0 | 1.0 | 0.6 | 3.7 | (42%) | (73%) | |||||||||||||
Carry Fund Appreciation/Depreciation (2) | 10% | 2% | (3%) | 7% | 11% | ||||||||||||||||
(1) Distributions are based on when proceeds are actually
distributed to the Limited Partners, which may differ from when
they are realized. For 1Q 2012, approximately |
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(2) |
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Fund of Funds Solutions (FoF)
Fund of Funds Solutions generated total revenue of
Fund of Funds Solutions was effective in attracting capital during the
first quarter 2012, raising
Fund of Funds Solutions (Actual Results) | Period | LTM | % Change | |||||||||||||||
$ in millions, except where noted | 1Q2011 | 2Q2011 | 3Q2011 | 4Q2011 | 1Q2012 | 2Q11 - 1Q12 | QoQ | YoY | ||||||||||
Economic Net Income | N.A. | N.A. | 7 | 6 | 9 | N.M. | 42 | % | N.A. | |||||||||
Net Performance Fees | N.A. | N.A. | (1 | ) | 1 | 4 | N.M. | 429 | % | N.A. | ||||||||
Net Realized Performance Fees | N.A. | N.A. | 4 | 3 | 0 | N.M. | (86 | %) | N.A. | |||||||||
Distributable Earnings | N.A. | N.A. | 12 | 9 | 6 | N.M. | (32 | %) | N.A. | |||||||||
Total Assets Under Management ($ billion) | N.A. | N.A. | 44.2 | 40.7 | 45.4 | 12 | % | N.A. | ||||||||||
Fee-Earning Assets Under Management ($ billion) | N.A. | N.A. | 30.2 | 27.7 | 29.5 | 7 | % | N.A. | ||||||||||
Note: |
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Initial Public Offering and related Pro Forma Balance Sheet impacts
On
Carlyle raised
On a pro forma basis, our U.S. GAAP balance sheet as of
There are no distributions to be declared from the first quarter 2012, due to Carlyle's status as a private firm throughout the period. However, we anticipate that we will announce a pro-rated quarterly distribution as part of our second quarter results to reflect a partial quarter as a public company.
Conference Call
Carlyle will host a conference call on
Analysts and institutional investors may listen to the call by dialing
+1-800-850-2903 (international +1-253-237-1169) and mentioning "Carlyle
Group First Quarter 2012 Results Conference Call". The conference call
will be webcast simultaneously to the public through a link on the
investor relations section of
About
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 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. These statements are subject to risks,
uncertainties and assumptions, including those described under the
section entitled "Risk Factors" in our prospectus dated
This release does not constitute an offer for any Carlyle fund.
1 Distributions yet to be distributed of
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GAAP Statements of Operations (Unaudited) |
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Three Months Ended | ||||||||
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2012 | 2011 | |||||||
(Dollars in millions) | ||||||||
Revenues | ||||||||
Fund management fees | $ | 234.4 | $ | 228.0 | ||||
Performance fees | ||||||||
Realized | 280.6 | 402.4 | ||||||
Unrealized | 360.2 | 472.3 | ||||||
Total performance fees | 640.8 | 874.7 | ||||||
Investment income (loss) | ||||||||
Realized | (0.8 | ) | 33.1 | |||||
Unrealized | 22.3 | 8.3 | ||||||
Total investment income (loss) | 21.5 | 41.4 | ||||||
Interest and other income | 2.7 | 5.9 | ||||||
Interest and other income of Consolidated Funds | 211.5 | 167.3 | ||||||
Total revenues | 1,110.9 | 1,317.3 | ||||||
Expenses | ||||||||
Compensation and benefits | ||||||||
Base compensation | 106.1 | 86.7 | ||||||
Performance fee related | ||||||||
Realized | 34.3 | 53.0 | ||||||
Unrealized | 54.8 | 35.5 | ||||||
Total compensation and benefits | 195.2 | 175.2 | ||||||
General, administrative and other expenses | 91.2 | 66.5 | ||||||
Interest | 10.4 | 17.0 | ||||||
Interest and other expenses of Consolidated Funds | 184.5 | 86.6 | ||||||
Other non-operating expense (income) | (4.1 | ) | 15.4 | |||||
Total expenses | 477.2 | 360.7 | ||||||
Other income (loss) | ||||||||
Net investment income (losses) of Consolidated Funds | 872.1 | (184.3 | ) | |||||
Income before provision for income taxes | 1,505.8 | 772.3 | ||||||
Provision for income taxes | 11.7 | 6.1 | ||||||
Net income | 1,494.1 | 766.2 | ||||||
Net income (loss) attributable to non-controlling interests in consolidated entities |
864.9 | (130.0 | ) | |||||
Net income attributable to |
$ | 629.2 | $ | 896.2 | ||||
Total Segment Information (Unaudited)
The following table sets forth information in the format used by management when making resource deployment decisions and in assessing the performance of our segments. The information below is the aggregate results of our four segments.
Three Months Ended | Twelve Months Ended | ||||||||||||||||
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March 31, | |||||||||||||
2012 | 2011 | 2011 | 2012 | 2011 | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Segment Revenues | |||||||||||||||||
Fund level fee revenues | |||||||||||||||||
Fund management fees | $ | 225.4 | $ | 200.6 | $ | 220.6 | $ | 895.3 | $ | 768.4 | |||||||
Portfolio advisory fees, net | 8.0 | 12.3 | 5.7 | 33.2 | 28.2 | ||||||||||||
Transaction fees, net | 2.7 | 18.8 | 9.9 | 22.1 | 38.0 | ||||||||||||
Total fee revenues | 236.1 | 231.7 | 236.2 | 950.6 | 834.6 | ||||||||||||
Performance fees | |||||||||||||||||
Realized | 281.8 | 401.7 | 414.6 | 1,181.4 | 672.8 | ||||||||||||
Unrealized | 349.7 | 459.2 | (3.4 | ) | (304.6 | ) | 1,416.4 | ||||||||||
Total performance fees | 631.5 | 860.9 | 411.2 | 876.8 | 2,089.2 | ||||||||||||
Investment income | |||||||||||||||||
Realized | 2.1 | 29.8 | 17.2 | 37.9 | 40.3 | ||||||||||||
Unrealized | 21.2 | 23.2 | 0.4 | 13.8 | 76.3 | ||||||||||||
Total investment income | 23.3 | 53.0 | 17.6 | 51.7 | 116.6 | ||||||||||||
Interest and other income | 2.6 | 5.9 | 0.6 | 12.2 | 22.4 | ||||||||||||
Total revenues | 893.5 | 1,151.5 | 665.6 | 1,891.3 | 3,062.8 | ||||||||||||
Segment Expenses | |||||||||||||||||
Direct compensation and benefits | |||||||||||||||||
Direct base compensation | 101.2 | 98.8 | 101.0 | 406.8 | 361.5 | ||||||||||||
Performance fee related | |||||||||||||||||
Realized | 139.1 | 187.8 | 198.2 | 575.1 | 327.3 | ||||||||||||
Unrealized | 157.6 | 232.9 | (9.8 | ) | (223.3 | ) | 724.3 | ||||||||||
Direct compensation and benefits | 397.9 | 519.5 | 289.4 | 758.6 | 1,413.1 | ||||||||||||
General, administrative, and other indirect expenses |
93.7 | 82.1 | 109.2 | 388.4 | 291.8 | ||||||||||||
Interest expense | 9.8 | 16.5 | 12.8 | 52.5 | 29.8 | ||||||||||||
Total expenses | 501.4 | 618.1 | 411.4 | 1,199.5 | 1,734.7 | ||||||||||||
Economic Net Income | $ | 392.1 | $ | 533.4 | $ | 254.2 | $ | 691.8 | $ | 1,328.1 | |||||||
Fee Related Earnings | $ | 34.0 | $ | 40.2 | $ | 13.8 | $ | 115.1 | $ | 173.9 | |||||||
Net Performance Fees |
$ | 334.8 | $ | 440.2 | $ | 222.8 | $ | 525.0 | $ | 1,037.6 | |||||||
Realized Net Performance Fees |
$ |
142.7 |
$ |
213.9 |
$ |
216.4 |
$ |
606.3 |
$ |
345.5 |
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Investment Income | $ | 23.3 | $ | 53.0 | $ | 17.6 | $ | 51.7 | $ | 116.6 | |||||||
Distributable Earnings | $ | 178.8 | $ | 283.9 | $ | 247.4 | $ | 759.3 | $ | 559.7 | |||||||
Pro Forma Economic Net Income(1) | $ | 400.8 | |||||||||||||||
Pro Forma Fee Related Earnings(1) | $ | 38.9 | |||||||||||||||
Pro Forma Distributable Earnings(1) | $ | 189.1 | |||||||||||||||
(1) The selected pro forma non-GAAP financial measures for the
three months ended |
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Total Segment Information (Unaudited), cont |
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Three Months Ended |
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$ | $ | |||||||||||||||||||
Economic Net Income, Total Segments |
(Dollars in millions) | ||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Segment fee revenues | |||||||||||||||||||||||||
Fund management fees | $ | 200.6 | $ | 214.9 | $ | 234.4 | $ | 220.6 | $ | 225.4 | $ | 24.8 | $ | 4.8 | |||||||||||
Portfolio advisory fees, net | 12.3 | 12.0 | 7.5 | 5.7 | 8.0 | (4.3 | ) | 2.3 | |||||||||||||||||
Transaction fees, net | 18.8 | 4.1 | 5.4 | 9.9 | 2.7 | (16.1 | ) | (7.2 | ) | ||||||||||||||||
Total fee revenues | 231.7 | 231.0 | 247.3 | 236.2 | 236.1 | 4.4 | (0.1 | ) | |||||||||||||||||
Performance fees | |||||||||||||||||||||||||
Realized | 401.7 | 97.6 | 387.4 | 414.6 | 281.8 | (119.9 | ) | (132.8 | ) | ||||||||||||||||
Unrealized | 459.2 | 243.8 | (894.7 | ) | (3.4 | ) | 349.7 | (109.5 | ) | 353.1 | |||||||||||||||
Total performance fees | 860.9 | 341.4 | (507.3 | ) | 411.2 | 631.5 | (229.4 | ) | 220.3 | ||||||||||||||||
Investment income | |||||||||||||||||||||||||
Realized | 29.8 | 5.6 | 13.0 | 17.2 | 2.1 | (27.7 | ) | (15.1 | ) | ||||||||||||||||
Unrealized | 23.2 | 9.8 | (17.6 | ) | 0.4 | 21.2 | (2.0 | ) | 20.8 | ||||||||||||||||
Total investment income | 53.0 | 15.4 | (4.6 | ) | 17.6 | 23.3 | (29.7 | ) | 5.7 | ||||||||||||||||
Interest and other income | 5.9 | 7.6 | 1.4 | 0.6 | 2.6 | (3.3 | ) | 2.0 | |||||||||||||||||
Total revenues | 1,151.5 | 595.4 | (263.2 | ) | 665.6 | 893.5 | (258.0 | ) | 227.9 | ||||||||||||||||
Expenses | |||||||||||||||||||||||||
Direct compensation and benefits | |||||||||||||||||||||||||
Direct base compensation | 98.8 | 97.4 | 107.2 | 101.0 | 101.2 | 2.4 | 0.2 | ||||||||||||||||||
Performance fee related | |||||||||||||||||||||||||
Realized | 187.8 | 44.6 | 193.2 | 198.2 | 139.1 | (48.7 | ) | (59.1 | ) | ||||||||||||||||
Unrealized | 232.9 | 106.1 | (477.2 | ) | (9.8 | ) | 157.6 | (75.3 | ) | 167.4 | |||||||||||||||
Total direct comp and benefits | 519.5 | 248.1 | (176.8 | ) | 289.4 | 397.9 | (121.6 | ) | 108.5 | ||||||||||||||||
General, administrative, and other indirect expenses |
82.1 | 95.7 | 89.8 | 109.2 | 93.7 | 11.6 | (15.5 | ) | |||||||||||||||||
Interest expense | 16.5 | 14.8 | 15.1 | 12.8 | 9.8 | (6.7 | ) | (3.0 | ) | ||||||||||||||||
Total expenses | 618.1 | 358.6 | (71.9 | ) | 411.4 | 501.4 | (116.7 | ) | 90.0 | ||||||||||||||||
Economic Net Income |
$ | 533.4 | $ | 236.8 | $ | (191.3 | ) | $ | 254.2 | $ | 392.1 | $ | (141.3 | ) | $ | 137.9 | |||||||||
Fee Related Earnings |
$ | 40.2 | $ | 30.7 | $ | 36.6 | $ | 13.8 | $ | 34.0 | $ | (6.2 | ) | $ | 20.2 | ||||||||||
Net Performance Fees |
$ | 440.2 | $ | 190.7 | $ | (223.3 | ) | $ | 222.8 | $ | 334.8 | $ | (105.4 | ) | $ | 112.0 | |||||||||
Realized Net Performance Fees |
$ |
213.9 |
$ |
53.0 |
$ |
194.2 |
$ |
216.4 |
$ |
142.7 |
$ |
(71.2 |
) |
$ |
(73.7 |
) |
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Investment Income |
$ | 53.0 | $ | 15.4 | $ | (4.6 | ) | $ | 17.6 | $ | 23.3 | $ | (29.7 | ) | $ | 5.7 | |||||||||
Distributable Earnings |
$ | 283.9 | $ | 89.3 | $ | 243.8 | $ | 247.4 | $ | 178.8 | $ | (105.1 | ) | $ | (68.6 | ) | |||||||||
Corporate Private Equity Segment Results (Unaudited) |
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Three Months Ended | ||||||||||||||||||||||||||
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$ | $ | ||||||||||||||||||||
Corporate Private Equity | (Dollars in millions) | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||
Fund management fees | $ | 129.4 | $ | 130.2 | $ | 128.1 | $ | 123.6 | $ | 123.9 | $ | (5.5 | ) | $ | 0.3 | |||||||||||
Portfolio advisory fees, net | 11.8 | 10.4 | 4.8 | 4.3 | 7.0 | (4.8 | ) | 2.7 | ||||||||||||||||||
Transaction fees, net | 18.5 | 4.1 | 3.8 | 8.3 | 1.6 | (16.9 | ) | (6.7 | ) | |||||||||||||||||
Total fee revenues | 159.7 | 144.7 | 136.7 | 136.2 | 132.5 | (27.2 | ) | (3.7 | ) | |||||||||||||||||
Performance fees | ||||||||||||||||||||||||||
Realized | 326.9 | 30.8 | 333.0 | 262.2 | 223.0 | (103.9 | ) | (39.2 | ) | |||||||||||||||||
Unrealized | 367.4 | 240.8 | (787.2 | ) | 79.7 | 241.3 | (126.1 | ) | 161.6 | |||||||||||||||||
Total performance fees | 694.3 | 271.6 | (454.2 | ) | 341.9 | 464.3 | (230.0 | ) | 122.4 | |||||||||||||||||
Investment income | ||||||||||||||||||||||||||
Realized | 27.1 | (0.1 | ) | 8.1 | 8.1 | 0.8 | (26.3 | ) | (7.3 | ) | ||||||||||||||||
Unrealized | 2.0 | 7.2 | (14.8 | ) | 5.9 | 14.5 | 12.5 | 8.6 | ||||||||||||||||||
Total investment income | 29.1 | 7.1 | (6.7 | ) | 14.0 | 15.3 | (13.8 | ) | 1.3 | |||||||||||||||||
Interest and other income | 3.6 | 4.2 | 0.3 | 1.1 | 1.4 | (2.2 | ) | 0.3 | ||||||||||||||||||
Total revenues | 886.7 | 427.6 | (323.9 | ) | 493.2 | 613.5 | (273.2 | ) | 120.3 | |||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Direct compensation and benefits | ||||||||||||||||||||||||||
Direct base compensation | 64.1 | 62.3 | 62.8 | 63.9 | 55.3 | (8.8 | ) | (8.6 | ) | |||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||
Realized | 167.3 | 12.1 | 176.2 | 131.9 | 117.6 | (49.7 | ) | (14.3 | ) | |||||||||||||||||
Unrealized | 214.9 | 124.2 | (444.2 | ) | 58.0 | 132.0 | (82.9 | ) | 74.0 | |||||||||||||||||
Total direct comp and benefits | 446.3 | 198.6 | (205.2 | ) | 253.8 | 304.9 | (141.4 | ) | 51.1 | |||||||||||||||||
General, administrative, and other indirect expenses |
55.1 | 56.7 | 56.5 | 70.2 | 58.8 | 3.7 | (11.4 | ) | ||||||||||||||||||
Interest expense | 10.5 | 9.7 | 9.8 | 7.5 | 5.9 | (4.6 | ) | (1.6 | ) | |||||||||||||||||
Total expenses | 511.9 | 265.0 | (138.9 | ) | 331.5 | 369.6 | (142.3 | ) | 38.1 | |||||||||||||||||
Economic Net Income |
$ | 374.8 | $ | 162.6 | $ | (185.0 | ) | $ | 161.7 | $ | 243.9 | $ | (130.9 | ) | $ | 82.2 | ||||||||||
Fee Related Earnings |
$ | 33.6 | $ | 20.2 | $ | 7.9 | $ | (4.3 | ) | $ | 13.9 | $ | (19.7 | ) | $ | 18.2 | ||||||||||
Net Performance Fees |
$ | 312.1 | $ | 135.3 | $ | (186.2 | ) | $ | 152.0 | $ | 214.7 | $ | (97.4 | ) | $ | 62.7 | ||||||||||
Realized Net Performance Fees |
$ |
159.6 |
$ |
18.7 |
$ |
156.8 |
$ |
130.3 |
$ |
105.4 |
$ |
(54.2 |
) |
$ |
(24.9 |
) |
||||||||||
Investment Income |
$ | 29.1 | $ | 7.1 | $ | (6.7 | ) | $ | 14.0 | $ | 15.3 | $ | (13.8 | ) | $ | 1.3 | ||||||||||
Distributable Earnings |
$ | 220.3 | $ | 38.8 | $ | 172.8 | $ | 134.1 | $ | 120.1 | $ | (100.2 | ) | $ | (14.0 | ) | ||||||||||
Global Market Strategies Segment Results (Unaudited) |
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Three Months Ended | ||||||||||||||||||||||||||
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$ | $ | ||||||||||||||||||||
Global Market Strategies | (Dollars in millions) | |||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||
Fund management fees | $ | 33.8 | $ | 44.4 | $ | 50.4 | $ | 44.9 | $ | 48.6 | $ | 14.8 | $ | 3.7 | ||||||||||||
Portfolio advisory fees, net | 0.5 | 0.9 | 0.8 | 0.8 | 0.7 | 0.2 | (0.1 | ) | ||||||||||||||||||
Transaction fees, net | - | - | - | - | - | - | - | |||||||||||||||||||
Total fee revenues | 34.3 | 45.3 | 51.2 | 45.7 | 49.3 | 15.0 | 3.6 | |||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||
Realized | 34.8 | 54.8 | 6.1 | 108.5 | 32.4 | (2.4 | ) | (76.1 | ) | |||||||||||||||||
Unrealized | 31.0 | (16.1 | ) | (6.8 | ) | (101.0 | ) | 12.7 | (18.3 | ) | 113.7 | |||||||||||||||
Total performance fees | 65.8 | 38.7 | (0.7 | ) | 7.5 | 45.1 | (20.7 | ) | 37.6 | |||||||||||||||||
Investment income | ||||||||||||||||||||||||||
Realized | 2.9 | 5.0 | 3.1 | 9.3 | 1.3 | (1.6 | ) | (8.0 | ) | |||||||||||||||||
Unrealized | 16.8 | 2.8 | (2.1 | ) | (4.7 | ) | 3.7 | (13.1 | ) | 8.4 | ||||||||||||||||
Total investment income | 19.7 | 7.8 | 1.0 | 4.6 | 5.0 | (14.7 | ) | 0.4 | ||||||||||||||||||
Interest and other income | 1.7 | 1.3 | 1.4 | (0.4 | ) | 0.6 | (1.1 | ) | 1.0 | |||||||||||||||||
Total revenues | 121.5 | 93.1 | 52.9 | 57.4 | 100.0 | (21.5 | ) | 42.6 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||||
Direct compensation and benefits | ||||||||||||||||||||||||||
Direct base compensation | 15.6 | 15.3 | 16.9 | 13.9 | 19.7 | 4.1 | 5.8 | |||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||
Realized | 19.4 | 27.9 | (0.7 | ) | 41.8 | 17.8 | (1.6 | ) | (24.0 | ) | ||||||||||||||||
Unrealized | 13.5 | (13.5 | ) | (10.7 | ) | (37.5 | ) | 9.7 | (3.8 | ) | 47.2 | |||||||||||||||
Total direct comp and benefits | 48.5 | 29.7 | 5.5 | 18.2 | 47.2 | (1.3 | ) | 29.0 | ||||||||||||||||||
General, administrative, and other indirect expenses |
8.4 | 17.8 | 10.8 | 14.0 | 13.0 | 4.6 | (1.0 | ) | ||||||||||||||||||
Interest expense | 2.9 | 2.2 | 2.4 | 3.0 | 1.7 | (1.2 | ) | (1.3 | ) | |||||||||||||||||
Total expenses | 59.8 | 49.7 | 18.7 | 35.2 | 61.9 | 2.1 | 26.7 | |||||||||||||||||||
Economic Net Income |
$ | 61.7 | $ | 43.4 | $ | 34.2 | $ | 22.2 | $ | 38.1 | $ | (23.6 | ) | $ | 15.9 | |||||||||||
Fee Related Earnings |
$ | 9.1 | $ | 11.3 | $ | 22.5 | $ | 14.4 | $ | 15.5 | $ | 6.4 | $ | 1.1 | ||||||||||||
Net Performance Fees |
$ | 32.9 | $ | 24.3 | $ | 10.7 | $ | 3.2 | $ | 17.6 | $ | (15.3 | ) | $ | 14.4 | |||||||||||
Realized Net Performance Fees |
$ |
15.4 |
$ |
26.9 |
$ |
6.8 |
$ |
66.7 |
$ |
14.6 |
$ |
(0.8 |
) |
$ |
(52.1 |
) |
||||||||||
Investment Income |
$ | 19.7 | $ | 7.8 | $ | 1.0 | $ | 4.6 | $ | 5.0 | $ | (14.7 | ) | $ | 0.4 | |||||||||||
Distributable Earnings |
$ | 27.4 | $ | 43.2 | $ | 32.4 | $ | 90.4 | $ | 31.4 | $ | 4.0 | $ | (59.0 | ) | |||||||||||
- |
Real Assets Segment Results (Unaudited) |
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Three Months Ended | ||||||||||||||||||||||||||||
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$ | $ | ||||||||||||||||||||||
Real Assets | (Dollars in millions) | |||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||||
Fund management fees | $ | 37.4 | $ | 40.3 | $ | 37.2 | $ | 35.8 | $ | 36.6 | $ | (0.8 | ) | $ | 0.8 | |||||||||||||
Portfolio advisory fees, net | - | 0.7 | 1.9 | 0.6 | 0.3 | 0.3 | (0.3 | ) | ||||||||||||||||||||
Transaction fees, net | 0.3 | - | 1.6 | 1.6 | 1.1 | 0.8 | (0.5 | ) | ||||||||||||||||||||
Total fee revenues | 37.7 | 41.0 | 40.7 | 38.0 | 38.0 | 0.3 | - | |||||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||||
Realized | 40.0 | 12.0 | 29.1 | 16.9 | 23.2 | (16.8 | ) | 6.3 | ||||||||||||||||||||
Unrealized | 60.8 | 19.1 | (78.2 | ) | 50.8 | 82.4 | 21.6 | 31.6 | ||||||||||||||||||||
Total performance fees | 100.8 | 31.1 | (49.1 | ) | 67.7 | 105.6 | 4.8 | 37.9 | ||||||||||||||||||||
Investment income | ||||||||||||||||||||||||||||
Realized | (0.2 | ) | 0.7 | 1.8 | (0.2 | ) | - | 0.2 | 0.2 | |||||||||||||||||||
Unrealized | 4.4 | (0.2 | ) | (0.7 | ) | (0.8 | ) | 3.0 | (1.4 | ) | 3.8 | |||||||||||||||||
Total investment income | 4.2 | 0.5 | 1.1 | (1.0 | ) | 3.0 | (1.2 | ) | 4.0 | |||||||||||||||||||
Interest and other income | 0.6 | 2.1 | (0.5 | ) | (0.2 | ) | 0.4 | (0.2 | ) | 0.6 | ||||||||||||||||||
Total revenues |
143.3 | 74.7 | (7.8 | ) | 104.5 | 147.0 | 3.7 | 42.5 | ||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Direct compensation and benefits | ||||||||||||||||||||||||||||
Direct base compensation | 19.1 | 19.8 | 19.4 | 17.0 | 18.2 | (0.9 | ) | 1.2 | ||||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||||
Realized | 1.1 | 4.6 | 2.4 | 0.3 | 0.9 | (0.2 | ) | 0.6 | ||||||||||||||||||||
Unrealized | 4.5 | (4.6 | ) | (4.3 | ) | 0.5 | 5.9 | 1.4 | 5.4 | |||||||||||||||||||
Total direct comp and benefits | 24.7 | 19.8 | 17.5 | 17.8 | 25.0 | 0.3 | 7.2 | |||||||||||||||||||||
General, administrative, and other indirect expenses |
18.6 | 21.2 | 19.5 | 20.5 | 19.1 | 0.5 | (1.4 | ) | ||||||||||||||||||||
Interest expense | 3.1 | 2.9 | 2.9 | 2.3 | 1.9 | (1.2 | ) | (0.4 | ) | |||||||||||||||||||
Total expenses | 46.4 | 43.9 | 39.9 | 40.6 | 46.0 | (0.4 | ) | 5.4 | ||||||||||||||||||||
Economic Net Income |
$ | 96.9 | $ | 30.8 | $ | (47.7 | ) | $ | 63.9 | $ | 101.0 | $ | 4.1 | $ | 37.1 | |||||||||||||
Fee Related Earnings |
$ | (2.5 | ) | $ | (0.8 | ) | $ | (1.6 | ) | $ | (2.0 | ) | $ | (0.8 | ) | $ | 1.7 | $ | 1.2 | |||||||||
Net Performance Fees |
$ | 95.2 | $ | 31.1 | $ | (47.2 | ) | $ | 66.9 | $ | 98.8 | $ | 3.6 | $ | 31.9 | |||||||||||||
Realized Net Performance Fees |
$ |
38.9 |
$ |
7.4 |
$ |
26.7 |
$ |
16.6 |
$ |
22.3 |
$ |
(16.6 |
) |
|
$ |
5.7 |
||||||||||||
Investment Income |
$ | 4.2 | $ | 0.5 | $ | 1.1 | $ | (1.0 | ) | $ | 3.0 | $ | (1.2 | ) | $ | 4.0 | ||||||||||||
Distributable Earnings |
$ | 36.2 | $ | 7.3 | $ | 26.9 | $ | 14.4 | $ | 21.5 | $ | (14.7 | ) | $ | 7.1 | |||||||||||||
Fund of Funds Solutions Segment Results (Unaudited) |
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Three Months Ended | |||||||||||||||||||||
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$ | $ | |||||||||||||||
Fund of Funds Solutions | (Dollars in millions) | ||||||||||||||||||||
Revenues | |||||||||||||||||||||
Segment fee revenues | |||||||||||||||||||||
Fund management fees | n/a | n/a | $ | 18.7 | $ | 16.3 | $ | 16.3 | n/a | $ | - | ||||||||||
Portfolio advisory fees, net | n/a | n/a | - | - | - | n/a | - | ||||||||||||||
Transaction fees, net | n/a | n/a | - | - | - | n/a | - | ||||||||||||||
Total fee revenues | n/a | n/a | 18.7 | 16.3 | 16.3 | n/a | - | ||||||||||||||
Performance fees | |||||||||||||||||||||
Realized | n/a | n/a | 19.2 | 27.0 | 3.2 | n/a | (23.8 | ) | |||||||||||||
Unrealized | n/a | n/a | (22.5 | ) | (32.9 | ) | 13.3 | n/a | 46.2 | ||||||||||||
Total performance fees | n/a | n/a | (3.3 | ) | (5.9 | ) | 16.5 | n/a | 22.4 | ||||||||||||
Investment income | |||||||||||||||||||||
Realized | n/a | n/a | - | - | - | n/a | - | ||||||||||||||
Unrealized | n/a | n/a | - | - | - | n/a | - | ||||||||||||||
Total investment income | n/a | n/a | - | - | - | n/a | - | ||||||||||||||
Interest and other income | n/a | n/a | 0.2 | 0.1 | 0.2 | n/a | 0.1 | ||||||||||||||
Total revenues | n/a | n/a | 15.6 | 10.5 | 33.0 | n/a | 22.5 | ||||||||||||||
Expenses | |||||||||||||||||||||
Direct compensation and benefits | |||||||||||||||||||||
Direct base compensation | n/a | n/a | 8.1 | 6.2 | 8.0 | n/a | 1.8 | ||||||||||||||
Performance fee related | |||||||||||||||||||||
Realized | n/a | n/a | 15.3 | 24.2 | 2.8 | n/a | (21.4 | ) | |||||||||||||
Unrealized | n/a | n/a | (18.0 | ) | (30.8 | ) | 10.0 | n/a | 40.8 | ||||||||||||
Total direct comp and benefits | n/a | n/a | 5.4 | (0.4 | ) | 20.8 | n/a | 21.2 | |||||||||||||
General, administrative, and other indirect expenses |
n/a | n/a | 3.0 | 4.5 | 2.8 | n/a | (1.7 | ) | |||||||||||||
Interest expense | n/a | n/a | - | - | 0.3 | n/a | 0.3 | ||||||||||||||
Total expenses | n/a | n/a | 8.4 | 4.1 | 23.9 | n/a | 19.8 | ||||||||||||||
Economic Net Income |
n/a | n/a | $ | 7.2 | $ | 6.4 | $ | 9.1 | n/a | $ | 2.7 | ||||||||||
Fee Related Earnings |
n/a | n/a | $ | 7.8 | $ | 5.7 | $ | 5.4 | n/a | $ | (0.3 | ) | |||||||||
Net Performance Fees |
n/a | n/a | $ | (0.6 | ) | $ | 0.7 | $ | 3.7 | n/a | $ | 3.0 | |||||||||
Realized Net Performance Fees |
n/a |
n/a |
$ |
3.9 |
$ |
2.8 |
$ |
0.4 |
n/a |
$ |
(2.4 |
) |
|||||||||
Investment Income |
n/a | n/a | $ | - | $ | - | $ | - | n/a | $ | - | ||||||||||
Distributable Earnings |
n/a | n/a | $ | 11.7 | $ | 8.5 | $ | 5.8 | n/a | $ | (2.7 | ) | |||||||||
Total Assets Under Management Roll Forward (Unaudited) |
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Corporate Private Equity | Real Assets | Global Market Strategies | Fund of Funds (7) | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(USD in millions) |
Available |
Fair Value of Capital |
Total AUM |
Available |
Fair Value of Capital |
Total AUM |
Available Capital |
Fair Value of Capital |
Total AUM |
Available |
Fair Value of Capital |
Total AUM |
Available Capital |
Fair Value of Capital |
Total AUM |
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|
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Balance, As of |
$ | 13,328 | $ | 37,737 | $ | 51,065 | $ | 8,278 | $ | 22,394 | $ | 30,672 | $ | 1,079 | $ | 23,434 | $ | 24,513 | $ | 14,840 | $ | 25,879 | $ | 40,719 | $ | 37,525 | $ | 109,444 | $ | 146,969 | ||||||||||||||||||||||||||||||
Acquisitions | - | - | - | - | - | - | - | 2,903 | 2,903 | - | - | - | - | 2,903 | 2,903 | |||||||||||||||||||||||||||||||||||||||||||||
Commitments (1) | 314 | - | 314 | 54 | - | 54 | 112 | - | 112 | 3,293 | - | 3,293 | 3,773 | - | 3,773 | |||||||||||||||||||||||||||||||||||||||||||||
Capital Called, net (2) | (645 | ) | 519 | (126 | ) | (889 | ) | 988 | 99 | (76 | ) | 65 | (11 | ) | (873 | ) | 1,068 | 195 | (2,483 | ) | 2,640 | 157 | ||||||||||||||||||||||||||||||||||||||
Distributions (3) | 315 | (1,528 | ) | (1,213 | ) | 292 | (1,172 | ) | (880 | ) | 1 | (367 | ) | (366 | ) | 64 | (1,281 | ) | (1,217 | ) | 672 | (4,348 | ) | (3,676 | ) | |||||||||||||||||||||||||||||||||||
Subscriptions, net of Redemptions (4) | - | - | - | - | - | - | - | 710 | 710 | - | - | - | - | 710 | 710 | |||||||||||||||||||||||||||||||||||||||||||||
Changes in CLO collateral balances | - | - | - | - | - | - | - | 244 | 244 | - | - | - | - | 244 | 244 | |||||||||||||||||||||||||||||||||||||||||||||
Market Appreciation/(Depreciation) (5) | - | 3,024 | 3,024 | - | 2,159 | 2,159 | - | 90 | 90 | - | 1,297 | 1,297 | - | 6,570 | 6,570 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange (6) | 50 | 150 | 200 | 35 | 103 | 138 | - | 97 | 97 | 312 | 825 | 1,137 | 397 | 1,175 | 1,572 | |||||||||||||||||||||||||||||||||||||||||||||
Balance, As of |
$ | 13,362 | $ | 39,902 | $ | 53,264 | $ | 7,770 | $ | 24,472 | $ | 32,242 | $ | 1,116 | $ | 27,176 | $ | 28,292 | $ | 17,636 | $ | 27,788 | $ | 45,424 | $ | 39,884 | $ | 119,338 | $ | 159,222 | ||||||||||||||||||||||||||||||
(1) Represents capital raised by our carry funds and fund of funds vehicles, net of expired available capital. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Represents capital called by our carry funds and fund of funds vehicles, net of fund fees and expenses. Equity Invested amounts may vary from Capital Called due to timing differences between investment acquisition and capital call dates. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) Represents distributions from our carry funds and fund of funds vehicles, net of amounts recycled. Distributions are based on when proceeds are actually distributed to Limited Partners, which may differ from when they are realized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(4) Represents the net result of subscriptions to and redemptions from our hedge funds and open-end structured credit funds. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(5) Market Appreciation/(Depreciation) represents realized and unrealized gains (losses) on portfolio investments and changes in the net asset value of our hedge funds. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(6) Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(7) The fair market values for AlpInvest primary fund investments
and secondary investment funds are based on the latest available
valuations of the underlying limited partnership interests (in most
cases as of |
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Fee Earning Assets Under Management Roll Forward (Unaudited) |
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As of |
||||||||||||||||||||
(USD in millions) |
Corporate |
Real Assets |
Global |
Fund of |
Total | |||||||||||||||
Fee-Earning AUM | ||||||||||||||||||||
Balance, Beginning of Period | $ | 37,996 | $ | 22,172 | $ | 23,186 | $ | 27,671 | $ | 111,025 | ||||||||||
Acquisitions | - | - | 2,866 | - | 2,866 | |||||||||||||||
Inflows, including Commitments(1) | 137 | 837 | 193 | 2,519 | 3,686 | |||||||||||||||
Outflows, including Distributions(2) | (454 | ) | (265 | ) | (331 | ) | (2,010 | ) | (3,060 | ) | ||||||||||
Subscriptions, net of Redemptions (3) | - | - | 717 | - | 717 | |||||||||||||||
Changes in CLO collateral balances | - | - | 234 | - | 234 | |||||||||||||||
Market Appreciation/(Depreciation) (4) | - | - | (154 | ) | 431 | 277 | ||||||||||||||
Foreign exchange and other (5) | 154 | 104 | 92 | 903 | 1,253 | |||||||||||||||
Balance, End of Period | $ | 37,833 | $ | 22,848 | $ | 26,803 | $ | 29,514 | $ | 116,998 | ||||||||||
(1) Inflows represent limited partner capital raised by our carry funds and fund of funds vehicles and capital invested by our carry funds and fund of funds vehicles outside the investment period. | ||||||||||||||||||||
(2) Outflows represent limited partner distributions from our carry funds and fund of funds vehicles and changes in basis for our carry funds and fund of funds vehicles where the investment period has expired. |
||||||||||||||||||||
(3) Represents the net result of subscriptions to and redemptions from our hedge funds and open-end structured credit funds. | ||||||||||||||||||||
(4) Market Appreciation/(Depreciation) represents changes in the net asset value of our hedge funds. | ||||||||||||||||||||
(5) Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end. | ||||||||||||||||||||
Corporate Private Equity and Real Assets Fund Families (Unaudited)
The fund return information reflected in this discussion and analysis is
not indicative of the performance of
TOTAL INVESTMENTS | REALIZED/PARTIALLY REALIZED INVESTMENTS (5) | |||||||||||||||||||||
as of |
as of |
|||||||||||||||||||||
Fund Inception Date (1) |
|
|
Total Fair Value (3) | MOIC (4) | Gross IRR (7) |
Net
IRR (8) |
|
|
Total Fair Value (3) | MOIC (4) | Gross IRR (7) | |||||||||||
Corporate Private Equity | (Reported in Local Currency, in Millions) | (Reported in Local Currency, in Millions) | ||||||||||||||||||||
Fully Invested Funds (6) | ||||||||||||||||||||||
CP II | 10/1994 |
|
|
|
3.0x | 34% | 25% |
|
|
3.0x | 34% | |||||||||||
CP III | 2/2000 |
|
|
|
2.5x | 27% | 21% |
|
|
2.6x | 27% | |||||||||||
CP IV | 12/2004 |
|
|
|
2.0x | 16% | 13% |
|
|
2.7x | 25% | |||||||||||
CEP I | 12/1997 | € 1,003.6 | € 972.0 | € 2,119.5 | 2.2x | 18% | 11% | € 972.0 | € 2,119.5 | 2.2x | 18% | |||||||||||
CEP II | 9/2003 | € 1,805.4 | € 2,045.4 | € 3,692.8 | 1.8x | 39% | 22% | € 1,016.5 | € 2,746.2 | 2.7x | 72% | |||||||||||
CAP I | 12/1998 |
|
|
|
3.9x | 25% | 18% |
|
|
3.9x | 25% | |||||||||||
CAP II | 2/2006 |
|
|
|
1.6x | 12% | 8% |
|
|
3.3x | 33% | |||||||||||
CJP | 10/2001 | ¥ 50,000.0 | ¥ 47,291.4 | ¥ 120,785.1 | 2.6x | 61% | 37% | ¥ 30,009.4 | ¥ 104,486.3 | 3.5x | 72% | |||||||||||
All Other Funds (9) | Various |
|
|
1.5x | 18% | 7% |
|
|
1.7x | 22% | ||||||||||||
Coinvestments and Other (10) |
Various |
|
|
2.4x | 36% | 33% |
|
|
3.1x | 36% | ||||||||||||
Total Fully Invested Funds |
|
|
2.2x | 28% | 21% |
|
|
2.7x | 31% | |||||||||||||
Funds in the Investment Period (6) | ||||||||||||||||||||||
CP V | 5/2007 |
|
|
|
1.4x | 15% | 10% | |||||||||||||||
CEP III | 12/2006 | € 5,294.9 | € 4,042.5 | € 4,563.5 | 1.1x | 5% | 2% | |||||||||||||||
CAP III | 5/2008 |
|
|
|
1.1x | 3% |
(4)% |
|
||||||||||||||
CJP II | 7/2006 | ¥ 165,600.0 | ¥ 119,539.7 | ¥ 123,662.7 | 1.0x | 1% |
(4)% |
|
||||||||||||||
CGFSP | 9/2008 |
|
|
|
1.3x | 19% | 10% | |||||||||||||||
CAGP IV | 6/2008 |
|
|
|
1.2x | 13% |
(1)% |
|
||||||||||||||
All Other Funds (11) | Various |
|
|
1.3x | 12% | 4% | ||||||||||||||||
Total Funds in the Investment Period |
|
|
1.3x | 11% | 5% | |||||||||||||||||
TOTAL CORPORATE PRIVATE EQUITY (12) |
|
|
1.8x | 27% | 19% |
|
|
2.6x | 31% | |||||||||||||
Real Assets | ||||||||||||||||||||||
Fully Invested Funds (6) | ||||||||||||||||||||||
CRP III | 11/2000 |
|
|
|
2.5x | 44% | 30% |
|
|
2.6x | 48% | |||||||||||
CRP IV | 12/2004 |
|
|
|
0.9x |
(4)% |
|
(8)% |
|
|
|
1.4x | 20% | |||||||||
CRP V | 11/2006 |
|
|
|
1.2x | 8% | 4% |
|
|
1.3x | 10% | |||||||||||
CEREP I | 3/2002 | € 426.6 | € 517.0 | € 741.6 | 1.4x |
14% |
7% | € 441.2 | € 693.6 | 1.6x | 19% | |||||||||||
CEREP II | 4/2005 | € 762.7 | € 826.9 | € 391.0 | 0.5x |
(19)% |
|
(19)% |
|
€ 303.1 | € 150.5 | 0.5x | -17% | |||||||||
Energy II | 7/2002 |
|
|
|
2.9x | 83% | 56% |
|
|
4.2x | 109% | |||||||||||
Energy III | 10/2005 |
|
|
|
2.0x | 17% | 14% |
|
|
3.0x | 32% | |||||||||||
All Other Funds (13) | Various |
|
|
1.0x | 2% |
(5)% |
|
|
|
1.4x | 16% | |||||||||||
Coinvestments and Other (10) | Various |
|
|
1.7x | 22% | 18% |
|
|
2.7x | 32% | ||||||||||||
Total Fully Invested Funds |
|
|
1.6x | 18% | 12% |
|
|
2.2x | 31% | |||||||||||||
Funds in the Investment Period (6) | ||||||||||||||||||||||
CRP VI (14) | 9/2010 |
|
|
|
1.0x | n/m | n/m | |||||||||||||||
CIP | 9/2006 |
|
|
|
1.1x | 5% |
(2)% |
|||||||||||||||
CEREP III | 5/2007 | € 2,229.5 | € 1,344.9 | € 1,551.0 | 1.2x | 6% | 0% | |||||||||||||||
Energy IV | 12/2007 |
|
|
|
1.7x | 26% | 20% | |||||||||||||||
Renewable Energy II | 3/2008 |
|
|
|
1.4x | 18% | 10% | |||||||||||||||
All Other Funds (15) | Various |
|
|
1.4x |
(4)% |
(10)% |
||||||||||||||||
Total Funds in the Investment Period |
|
|
1.4x | 17% | 11% | |||||||||||||||||
TOTAL REAL ASSETS (12) |
|
|
1.5x | 18% | 12% |
|
|
2.2x | 31% | |||||||||||||
Global Markets Strategies Carry Funds and Fund of Funds Vehicles (Unaudited) |
||||||||||||||
TOTAL INVESTMENTS | ||||||||||||||
as of |
Inception to |
|||||||||||||
Vintage |
Fund Size |
Cumulative |
Total Fair |
MOIC (4) |
Gross IRR (7) | Net IRR (8) | ||||||||
Global Market Strategies | (Reported in Local Currency, in Millions) | |||||||||||||
CSP II | 6/2007 |
|
|
|
1.6x | 18% | 12% | |||||||
TOTAL INVESTMENTS | ||||||||||||||
as of |
Inception to |
|||||||||||||
Vintage |
Fund Size |
Cumulative |
Total Fair |
MOIC (4) | Gross IRR (7) | Net IRR (8) | ||||||||
Fund of Funds Solutions (16) (17) | (Reported in Local Currency, in Millions) | |||||||||||||
Fully Committed Funds (6) |
||||||||||||||
Main Fund I - Fund Investments | 2000 | € 5,174.6 | € 3,858.8 | € 6,127.9 | 1.6x | 13% | 12% | |||||||
Main Fund II - Fund Investments | 2003 | € 4,545.0 | € 4,299.8 | € 5,840.8 | 1.4x | 9% | 9% | |||||||
Main Fund III - Fund Investments | 2006 | € 11,500.0 | € 8,790.4 | € 9,533.5 | 1.1x | 3% | 3% | |||||||
Main Fund I - Secondary Investments | 2002 | € 519.4 | € 456.8 | € 854.4 | 1.9x | 55% | 51% | |||||||
Main Fund II - Secondary Investments | 2003 | € 998.4 | € 909.3 | € 1,597.4 | 1.8x | 28% | 27% | |||||||
Main Fund III - Secondary Investments | 2006 | € 2,250.0 | € 2,005.5 | € 2,495.3 | 1.2x | 8% | 8% | |||||||
Main Fund IV - Secondary Investments | 2010 | € 1,856.4 | € 1,442.9 | € 1,753.0 | 1.2x | 25% | 24% | |||||||
Main Fund II - Co-Investments | 2003 | € 1,090.0 | € 864.7 | € 2,286.9 | 2.6x | 45% | 43% | |||||||
Main Fund III - Co-Investments | 2006 | € 2,760.0 | € 2,418.3 | € 2,324.3 | 1.0x |
(1)% |
(2)% |
|||||||
Main Fund II - Mezzanine Investments | 2005 | € 700.0 | € 686.9 | € 884.1 | 1.3x | 8% | 7% | |||||||
Main Fund III - Mezzanine Investments | 2007 | € 2,000.0 | € 1,288.0 | € 1,571.5 | 1.2x | 10% | 8% | |||||||
All Other Funds (19) |
Various | € 1,205.3 | € 1,801.1 | 1.5x | 19% | 15% | ||||||||
Total Fully Committed Funds |
€ 28,226.7 | € 37,070.2 | 1.3x | 11% | 10% | |||||||||
Funds in the Commitment Period |
||||||||||||||
Main Fund IV - Fund Investments | 2009 | € 4,880.0 | € 780.3 | € 742.6 | 1.0x |
(6)% |
(9)% |
|||||||
Main Fund V - Secondary Investments | 2011 | € 2,377.3 | € 121.5 | € 122.2 | 1.0x | 15% |
(11)% |
|||||||
Main Fund IV - Co-Investments | 2010 | € 1,575.0 | € 934.8 | € 938.7 | 1.0x | 0% |
(2)% |
|||||||
All Other Funds (19) |
Various | € 12.2 | € 12.1 | 1.0x |
(55)% |
(91)% |
||||||||
Total Funds in the Commitment Period | € 1,848.8 | € 1,815.6 | 1.0x |
(2)% |
(5)% |
|||||||||
TOTAL FUND OF FUNDS SOLUTIONS | € 30,075.5 | € 38,885.8 | 1.3x | 10% | 9% | |||||||||
TOTAL FUND OF FUNDS SOLUTIONS (USD) (20) |
|
|
1.3x | |||||||||||
(1) The data presented herein that provides "inception to date" performance results of our segments relates to the period following the formation of the first fund within each segment. For our Corporate Private Equity segment our first fund was formed in 1990. For our Real Assets segment our first fund was formed in 1997. For our Global Market Strategies segment, CSP II was formed in 2007. |
(2) Represents the original cost of all capital called for investments since inception of the fund. |
(3) Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried interest. |
(4) Multiple of invested capital ("MOIC") represents total fair value, before management fees, expenses and carried interest, divided by cumulative invested capital. |
(5) An investment is considered realized when the investment fund has completely exited, and ceases to own an interest in, the investment. An investment is considered partially realized when the total amount of proceeds received in respect of such investment, including dividends, interest or other distributions and/or return of capital, represents at least 85% of invested capital and such investment is not yet fully realized. Because part of our value creation strategy involves pursuing best exit alternatives, we believe information regarding Realized/Partially Realized MOIC and Gross IRR, when considered together with the other investment performance metrics presented, provides investors with meaningful information regarding our investment performance by removing the impact of investments where significant realization activity has not yet occurred. Realized/Partially Realized MOIC and Gross IRR have limitations as measures of investment performance, and should not be considered in isolation. Such limitations include the fact that these measures do not include the performance of earlier stage and other investments that do not satisfy the criteria provided above. The exclusion of such investments will have a positive impact on Realized/Partially Realized MOIC and Gross IRR in instances when the MOIC and Gross IRR in respect of such investments are less than the aggregate MOIC and Gross IRR. Our measurements of Realized/Partially Realized MOIC and Gross IRR may not be comparable to those of other companies that use similarly titled measures. We do not present Realized/Partially Realized performance information separately for funds that are still in the investment period because of the relatively insignificant level of realizations for funds of this type. However, to the extent such funds have had realizations, they are included in the Realized/Partially Realized performance information presented for Total Corporate Private Equity. |
(6) Fully Invested funds are past the expiration date of the investment period as defined in the respective limited partnership agreement. In instances where a successor fund has had its first capital call, the predecessor fund is categorized as fully invested. |
(7) Gross Internal Rate of Return ("IRR") represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value before management fees, expenses and carried interest. |
(8) Net Internal Rate of Return ("IRR") represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value after management fees, expenses and carried interest. |
(9) Aggregate includes the following funds: CP I, CMG, CVP I, CVP
II, CEVP, CETP, CAVP I, CAVP II, CAGP III and |
(10) Includes co-investments, prefund investments and certain other stand-alone investments arranged by us. |
(11) Aggregate includes the following funds: MENA, CSABF, CUSGF III, CETP II, CBPF, and CEOF. |
(12) For purposes of aggregation, funds that report in foreign currency have been converted to USD at the reporting period spot rate. |
(13) Aggregate includes the following funds: CRP I, CRP II, CAREP I, ENERGY I and RENEW I. |
(14) Gross IRR and Net IRR for CRP VI are not meaningful as the
investment period commenced in |
(15) Aggregate includes the following funds: CAREP II and CRCP I. |
(16) Represents the original cost of investments net of investment level recallable proceeds which is adjusted to reflect recyclability of invested capital for the purpose of calculating the fund MOIC. |
(17) Includes private equity and mezzanine primary fund investments, secondary fund investments and co-investments originated by the AlpInvest team. |
(18) To exclude the impact of FX, all foreign currency cash flows have been converted to EUR at the reporting period spot rate. |
(19) All Other Funds are AlpInvest Funds for which both the Fund
Size and Total Value are less than |
(20) Represents the US Dollar equivalent balance translated at the spot rate as of period end. |
|
||||
Pro Forma(1) for the Three |
||||
|
||||
2012 | ||||
(Dollars in millions, except unit and per unit amounts) | ||||
Revenues | ||||
Fund management fees | $ | 234.4 | ||
Performance fees | ||||
Realized | 280.6 | |||
Unrealized | 360.2 | |||
Total performance fees | 640.8 | |||
Investment income (loss) | ||||
Realized | (1.5 | ) | ||
Unrealized | 11.1 | |||
Total investment income (loss) | 9.6 | |||
Interest and other income | 2.6 | |||
Interest and other income of Consolidated Funds | 211.5 | |||
Total revenues | 1,098.9 | |||
Expenses | ||||
Compensation and benefits | ||||
Base compensation | 222.4 | |||
Performance fee related | ||||
Realized | 121.4 | |||
Unrealized | 132.3 | |||
Total compensation and benefits | 476.1 | |||
General, administrative and other expenses | 91.2 | |||
Interest | 4.8 | |||
Interest and other expenses of Consolidated Funds | 184.5 | |||
Other non-operating expense (income) | (0.5 | ) | ||
Total expenses | 756.1 | |||
Other income (loss) | ||||
Net investment income (losses) of Consolidated Funds | 871.6 | |||
Income before provision for income taxes | 1,214.4 | |||
Provision for income taxes | 13.8 | |||
Net income | 1,200.6 | |||
Net income (loss) attributable to non-controlling interests in consolidated entities |
901.7 | |||
Net income attributable to non-controlling interests in |
269.0 | |||
Net income attributable to |
$ | 29.9 | ||
Net income per common unit, basic(2) | $ | 0.98 | ||
Net income per common unit, diluted(2) | $ | 0.93 | ||
(1) The pro forma consolidated statement of operations data for
the three months ended |
(2) Common units used in these calculations are as follows: | ||||
|
Diluted | |||
|
30,500,000 | 30,500,000 | ||
Dilutive effect of unvested deferred restricted common units | - | 344,467 | ||
Contingently issuable |
- | 1,436,552 | ||
Total common units | 30,500,000 | 32,281,019 | ||
Reconciliation for Economic Net Income and Distributable Earnings (Unaudited) |
||||||||||||
Pro Forma(1) for the |
||||||||||||
Three Months |
||||||||||||
Ended | Three Months Ended | |||||||||||
|
|
March 31, | ||||||||||
2012 | 2012 | 2011 | ||||||||||
(Dollars in Millions) | ||||||||||||
Income before provision for income taxes | $ |
1,214.4 |
$ | 1,505.8 | $ | 772.3 | ||||||
Adjustments: | ||||||||||||
Partner compensation | - | (271.0 | ) | (400.6 | ) | |||||||
Equity-based compensation issued in conjunction with the IPO |
63.3 |
- |
- |
|||||||||
Acquisition related charges and amortization of intangibles | 23.1 | 24.1 | 14.6 | |||||||||
Other non-operating expenses | (0.5 | ) | (4.1 | ) | 15.4 | |||||||
Non-controlling interests in consolidated entities |
(901.7 | ) | (864.9 | ) | 130.0 | |||||||
Severance and lease terminations | 2.4 | 2.4 | 2.0 | |||||||||
Other adjustments | (0.2 | ) | (0.2 | ) | (0.3 | ) | ||||||
Economic Net Income | $ | 400.8 | $ | 392.1 | $ | 533.4 | ||||||
Net performance fees | 354.8 | 334.8 | 440.2 | |||||||||
Investment income | 7.1 | 23.3 | 53.0 | |||||||||
Fee Related Earnings | $ | 38.9 | $ | 34.0 | $ | 40.2 | ||||||
Realized performance fees, net of related compensation | 149.4 | 142.7 | 213.9 | |||||||||
Investment income - realized | 0.8 | 2.1 | 29.8 | |||||||||
Distributable Earnings | $ | 189.1 | $ | 178.8 | $ | 283.9 | ||||||
(1) The selected pro forma non-GAAP financial measures for the
three months ended |
Reconciliation for Economic Net income and Distributable Earnings, cont |
|||
(Unaudited) |
|||
Pro Forma(1) |
|||
for the Three | |||
Months Ended | |||
March 31, | |||
2012 | |||
(Dollars in millions, |
|||
Pro Forma Economic Net Income | $ | 400.8 | |
Less: Provision for Income Taxes | 63.5 | ||
Pro Forma Economic Net Income, After Taxes | $ | 337.3 | |
Pro Forma Economic Net Income, After Taxes per Adjusted Unit(2) | $ | 1.10 | |