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) |
¨ | 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)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | Summary press release of The Carlyle Group L.P., dated April 29, 2015. | |
99.2 | Earnings presentation of The Carlyle Group L.P., dated April 29, 2015. |
THE CARLYLE GROUP L.P. | ||||||
By: | Carlyle Group Management L.L.C., | |||||
its general partner | ||||||
Date: April 29, 2015 | By: | /s/ Curtis L. Buser | ||||
Name: | Curtis L. Buser | |||||
Title: | Chief Financial Officer |
Exhibit No. | Description | |
Exhibit 99.1 | Summary press release of The Carlyle Group L.P., dated April 29, 2015. | |
Exhibit 99.2 | Earnings presentation of The Carlyle Group L.P., dated April 29, 2015. |
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/about-carlyle/market-commentary |
• | $148 million of Distributable Earnings on a pre-tax basis for Q1 2015 and $938 million over the last twelve months; $0.43 per common unit on a post-tax basis in Q1 2015 |
• | Economic Net Income of $273 million on a pre-tax basis and $0.80 per Adjusted Unit on a post-tax basis, supported by 6% carry fund portfolio appreciation in Q1 2015 |
• | Excluding the impact of a French tax judgment in Q1 2015, Distributable Earnings and Economic Net Income would have been $228 million and $307 million, respectively, or $0.67 of Distributable Earning per common unit and $0.91 of ENI per Adjusted Unit |
• | $4.4 billion in net new capital raised in Q1 2015 and $23.2 billion raised over the last twelve months |
• | $4.6 billion in realized proceeds in Q1 2015 and $21.2 billion realized over the last twelve months |
• | $1.5 billion in equity invested in Q1 2015 and $10.1 billion invested over the last twelve months |
• | Declared a quarterly distribution of $0.33 per common unit for Q1 2015 |
• | U.S. GAAP net income attributable to The Carlyle Group L.P. of $40 million, or $0.54 per common unit on a diluted basis, for Q1 2015 |
First Quarter Distribution |
Performance Metrics |
Funds Raised | Equity Invested | |||||||||
Q1 | $4.4 billion | Q1 | $1.5 billion | |||||||
YTD: | $4.4 bn | LTM: | $23.2 bn | YTD: | $1.5 bn | LTM: | $10.1 bn | |||
Realized Proceeds | Carry Fund Returns | |||||||||
Q1 | $4.6 billion | Q1 | 6% | |||||||
YTD: | $4.6 bn | LTM: | $21.2 bn | YTD: | 6% | LTM: | 15% |
Realized Proceeds | Equity Invested | ||||||||||||
Segment (Carry Funds Only) | # of Investments | # of Funds | $ millions | # of Investments | # of Funds | $ millions | |||||||
Q1 | Corporate Private Equity | 28 | 16 | $3,364 | 19 | 14 | $838 | ||||||
Global Market Strategies | 25 | 5 | $218 | 3 | 2 | $51 | |||||||
Real Assets | 52 | 13 | $995 | 85 | 15 | $581 | |||||||
Carlyle | 102 | 34 | $4,576 | 107 | 31 | $1,470 |
Carlyle All Segment Results |
• | Distributable Earnings (DE): $148 million for Q1 2015 and $938 million on an LTM basis |
◦ | Distributable Earnings were $148 million for Q1 2015, or $0.43 per common unit on a post-tax basis. DE was $938 million on an LTM basis, 11% higher than the prior rolling 12-month period. Q1 2015 DE was negatively impacted by $80 million as a result of an adverse French tax judgment. |
◦ | Fee-Related Earnings (FRE) were $51 million for Q1 2015 compared to $37 million for Q1 2014 due to higher catch-up management fees of $23 million, compared to $8 million in Q1 2014, and lower general and administrative operating expenses for Q1 2015. FRE of $261 million on an LTM basis, 73% higher than the prior rolling 12-month period, were positively impacted by catch-up management fees and transaction fee revenue, largely in Corporate Private Equity. |
◦ | Realized Net Performance Fees were $178 million for Q1 2015, compared to $140 million for Q1 2014. For Q1 2015, realized net performance fees were positively impacted by exits in Commscope, Booz Allen Hamilton, Altice, Nielsen and Veyance Technologies, among others. |
◦ | Realized Investment Income/(Loss) was ($82) million in Q1 2015, with ($80) million attributable to the French tax judgment, ($8) million related to realized losses for Urbplan Desenvolvimento Urbano S.A. (“Urbplan”), and $6 million in realized gains on other balance sheet investments. |
• | Economic Net Income (ENI): $273 million for Q1 2015 and $923 million on an LTM basis |
◦ | First quarter 2015 ENI was positively impacted by net performance fees in Corporate Private Equity and firm-wide Fee-Related Earnings, but was partially offset by the French tax judgment's impact on ENI of $34 million. Carlyle had previously accrued €75 million in CEREP I for the French tax matter in 2013. On a post-tax basis, Carlyle generated ENI per Adjusted Unit of $0.80 for Q1 2015. On an LTM basis, ENI of $923 million was 24% lower than the prior rolling 12-month period. |
◦ | First quarter of 2015 overall carry fund appreciation was 6%. Corporate Private Equity carry funds appreciated by 8%, Global Market Strategies carry funds appreciated by 3% and Real Assets carry funds appreciated by 2% compared to the end of Q4 2014. Total carry fund appreciation was 15% on an LTM basis. |
The Carlyle Group L.P. - All Segments | Quarter | LTM | % Change | |||||||||||||||
$ in millions, except per unit data and where noted | ||||||||||||||||||
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | Q2 14 - Q1 15 | QoQ | YoY | LTM | ||||||||||
Revenues | 897 | 900 | 577 | 649 | 885 | 3,010 | 36% | (1)% | (12)% | |||||||||
Expenses | 585 | 611 | 396 | 468 | 612 | 2,087 | 31% | 5% | (5)% | |||||||||
Economic Net Income | 312 | 289 | 181 | 181 | 273 | 923 | 51% | (13)% | (24)% | |||||||||
Fee-Related Earnings | 37 | 80 | 62 | 67 | 51 | 261 | (24)% | 38% | 73% | |||||||||
Net Performance Fees | 296 | 233 | 139 | 138 | 282 | 793 | 104% | (5)% | (30)% | |||||||||
Realized Net Performance Fees | 140 | 231 | 98 | 264 | 178 | 771 | (32)% | 27% | 15% | |||||||||
Distributable Earnings | 183 | 323 | 157 | 311 | 148 | 938 | (52)% | (19)% | 11% | |||||||||
Distributable Earnings per common unit (after taxes) | $0.52 | $0.93 | $0.44 | $0.91 | $0.43 | |||||||||||||
Distribution per common unit | $0.16 | $0.16 | $0.16 | $1.61 | $0.33 | |||||||||||||
Total Assets Under Management ($ in billions) | 198.9 | 202.7 | 202.6 | 194.5 | 192.7 | (1)% | (3)% | (3)% | ||||||||||
Fee-Earning Assets Under Management ($ in billions) | 142.1 | 145.6 | 140.2 | 135.6 | 129.4 | (5)% | (9)% | (9)% | ||||||||||
Carry Fund Performance and Net Accrued Performance Fees |
2013 | 2014 | 2015 | Net Accrued Performance Fees | |||||||||||||||||
Fund Valuations ($ in millions) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q1 2015 | ||||||||||
Overall Carry Fund Appreciation | 7% | 3% | 4% | 6% | 6% | 5% | 3% | 1% | 6% | |||||||||||
Corporate Private Equity | 9% | 5% | 5% | 9% | 8% | 5% | 3% | 7% | 8% | $1,533 | ||||||||||
Buyout (2) | 9% | 5% | 5% | 9% | 8% | 5% | 3% | 7% | 9% | $1,462 | ||||||||||
Growth Capital (2) | 2% | 2% | 7% | 20% | 0% | 13% | 8% | 1% | 3% | $71 | ||||||||||
Real Assets | 3% | (2)% | 1% | (1)% | 2% | 3% | 2% | (8)% | 2% | $146 | ||||||||||
Real Estate (2) | 1% | (1)% | 3% | 0% | 2% | 4% | 4% | 8% | 11% | $155 | ||||||||||
Natural Resources (1,2) | 3% | (8)% | 1% | $18 | ||||||||||||||||
Legacy Energy (2) | 4% | (3)% | 0% | (3)% | 1% | 2% | 0% | (17)% | (3)% | $(27) | ||||||||||
Global Market Strategies | 9% | 8% | 2% | 10% | 3% | 12% | 6% | (2)% | 3% | $80 | ||||||||||
Non-Carry Fund / Other | $31 | |||||||||||||||||||
Net Accrued Performance Fees | $1,790 |
Assets Under Management and Remaining Fair Value of Capital |
• | Total Assets Under Management: $192.7 billion as of Q1 2015 (-3% LTM) |
◦ | Major drivers of change versus Q4 2014: New capital commitments (+$6.8 billion), market appreciation (+$7.3 billion) and changes in CLO/other structured products par value (+$0.9 billion), offset by net distributions (-$7.9 billion), foreign exchange loss (-$6.6 billion) and net redemptions (-$2.1 billion). |
◦ | Total Dry Powder of $60.4 billion as of Q1 2015, comprised of $24.8 billion in Corporate Private Equity, $2.8 billion in Global Market Strategies, $16.7 billion in Real Assets and $16.1 billion in Investment Solutions. |
• | Fee-Earning Assets Under Management: $129.4 billion as of Q1 2015 (-9% LTM) |
◦ | As of Q1 2015, there was $10.2 billion of newly raised capital for which we have not yet commenced charging management fees that will increase Fee-Earning AUM as capital is deployed or fee holidays expire. |
◦ | Over the LTM, the impact of foreign exchange on our non-U.S. dollar denominated funds has negatively impacted Fee-Earning AUM by $10.2 billion, or 80% of the total year-over-year change. |
◦ | Major drivers of change versus Q4 2014: Inflows, including fee-paying commitments (+$4.1 billion) and changes in CLO/other structured products par value (+$0.7 billion), offset by foreign exchange loss (-$4.5 billion), net distributions and outflows (-$4.4 billion) and net hedge fund redemptions (-$2.1 billion). |
◦ | Fee-Earning AUM was positively impacted during the first quarter by commitments in Carlyle’s latest vintage U.S. Real Estate fund and Europe buyout fund, new international energy fund and new CLOs and the final closing in NGP XI, in addition to other fundraising activity across the Carlyle platform. |
• | Remaining Fair Value of Capital (carry funds only) as of Q1 2015: $62.4 billion |
◦ | Current Multiple of Invested Capital (MOIC) of remaining fair value of capital: 1.3x. |
◦ | Total Fair Value derived from investments made in 2010 or earlier: 35%. |
◦ | AUM in-carry ratio as of the end of Q1 2015: 58%. The decline versus the prior quarter primarily is due to the Energy IV fund moving out of an accrued carry position, partially offset by Carlyle Realty Partners V moving into accrued carry. |
Non-GAAP Operating Results |
Carlyle Group Summary | |||
$ in millions, except unit and per unit amounts | |||
Economic Net Income | Q1 2015 | ||
Economic Net Income (pre-tax) | $ | 272.7 | |
Less: Provision for income taxes (1) | 12.1 | ||
Economic Net Income, After Taxes | $ | 260.6 | |
Adjusted Units (in millions) (2) | 324.5 | ||
Economic Net Income, After Taxes per Adjusted Unit | 0.80 | ||
Distributable Earnings | |||
Distributable Earnings | $ | 147.6 | |
Less: Estimated foreign, state, and local taxes (3) | 10.0 | ||
Distributable Earnings, After Taxes | $ | 137.6 | |
Allocating Distributable Earnings for only public unitholders of The Carlyle Group L.P. | |||
Distributable Earnings to The Carlyle Group L.P. | $ | 30.5 | |
Less: Estimated current corporate income taxes (4) | — | ||
Distributable Earnings to The Carlyle Group L.P. net of corporate income taxes | $ | 30.5 | |
Units in public float (in millions)(5) | 71.5 | ||
Distributable Earnings, net, per The Carlyle Group L.P. common unit outstanding | $ | 0.43 | |
Corporate Private Equity (CPE) |
Funds Raised | Equity Invested | Realized Proceeds | Carry Fund Returns | |||||||||||||||||||
Q1 | $1.7 billion | Q1 | $0.8 billion | Q1 | $3.4 billion | Q1 | 8% | |||||||||||||||
YTD: | $1.7 bn | LTM: | $8.7 bn | YTD: | $0.8 bn | LTM: | $6.7 bn | YTD: | $3.4 bn | LTM: | $15.4 bn | YTD: | 8% | LTM: | 23% | |||||||
• | Distributable Earnings (DE): $194 million for Q1 2015 and $836 million on an LTM basis, 46% higher than the prior rolling 12-month period ended Q1 2014. The following components impacted DE in Q1 2015: |
◦ | Fee-Related Earnings were $22 million in Q1 2015 and $138 million on an LTM basis, compared to $12 million in Q1 2014. The increase in Q1 2015 was driven by higher catch-up management fees of $12 million, compared to $6 million in Q1 2014, and lower general and administrative expenses. |
◦ | Realized Net Performance Fees were $169 million for Q1 2015 and $679 million on an LTM basis, compared to $133 million for Q1 2014. Carlyle Partners IV, Carlyle Partners V and Carlyle Europe Partners III generated the majority of Corporate Private Equity's net realized performance fees in Q1 2015. |
• | Economic Net Income (ENI): $289 million for Q1 2015 and $892 million on an LTM basis, 17% lower than the prior rolling 12-month period ended Q1 2014. |
◦ | CPE carry fund valuations increased 8% in Q1 2015 and 23% on an LTM basis, in line with an increase of 8% for Q1 2014. |
◦ | Net Performance Fees of $274 million for Q1 2015 and $772 million on an LTM basis, compared to $246 million for Q1 2014. |
• | Total Assets Under Management (AUM): $64.0 billion as of Q1 2015 (-1% LTM). |
◦ | Funds Raised in Q1 2015 of $1.7 billion include an initial close of our second U.S. mid-market buyout fund and additional closings of our latest vintage Europe and Japan buyout funds and our latest Europe technology fund. |
◦ | Fee-Earning Assets Under Management were $39.4 billion as of Q1 2015, 8% lower than the $42.9 billion as of Q1 2014, with $4.8 billion in inflows, including fee-paying commitments, offset by $6.6 billion in outflows, including distributions and basis step downs, and $1.9 billion in foreign exchange loss. |
Corporate Private Equity | Quarter | LTM | % Change | |||||||||||||||
$ in millions, except per unit data and where noted | ||||||||||||||||||
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | Q2 14 - Q1 15 | QoQ | YoY | LTM | ||||||||||
Economic Net Income | 258 | 208 | 159 | 236 | 289 | 892 | 22% | 12% | (17)% | |||||||||
Fee-Related Earnings | 12 | 45 | 38 | 33 | 22 | 138 | (33)% | 79% | 588% | |||||||||
Net Performance Fees | 246 | 167 | 124 | 208 | 274 | 772 | 32% | 11% | (26)% | |||||||||
Realized Net Performance Fees | 133 | 215 | 72 | 223 | 169 | 679 | (24)% | 27% | 27% | |||||||||
Distributable Earnings | 148 | 262 | 117 | 263 | 194 | 836 | (26)% | 31% | 46% | |||||||||
Total Assets Under Management ($ in billions) | 64.5 | 64.5 | 63.6 | 64.7 | 64.0 | (1)% | (1)% | (1)% | ||||||||||
Fee-Earning Assets Under Management ($ in billions) | 42.9 | 43.0 | 42.0 | 40.2 | 39.4 | (2)% | (8)% | (8)% | ||||||||||
Global Market Strategies (GMS) |
Funds Raised | Equity Invested | Realized Proceeds | Carry Fund Returns | |||||||||||||||||||
Q1 | $0.4 billion | Q1 | $0.1 billion | Q1 | $0.2 billion | Q1 | 3% | |||||||||||||||
YTD: | $0.4 bn | LTM: | $5.5 bn | YTD: | $0.1 bn | LTM: | $0.6 bn | YTD: | $0.2 bn | LTM: | $0.9 bn | YTD: | 3% | LTM: | 20% | |||||||
• | Distributable Earnings (DE): $9 million for Q1 2015 and $78 million on an LTM basis, 60% lower than prior rolling 12-month period ended Q1 2014. The following components impacted DE in Q1 2015. |
◦ | Fee-Related Earnings were $5 million in Q1 2015 and $53 million on an LTM basis, compared to $17 million in Q1 2014. The decline in Q1 2015 was driven by lower management fees from our hedge fund partnerships relative to Q1 2014. In addition, we have not yet commenced charging management fees on new capital raised for our second generation energy mezzanine fund, which had its first close in Q1 2015. |
◦ | Realized Net Performance Fees were $2 million for Q1 2015 and $16 million on an LTM basis, compared to $5 million for Q1 2014, with the lower quarterly level attributable to lower realized performance fees in GMS carry funds. |
◦ | Realized Investment Income was $2 million for Q1 2015 and $9 million on an LTM basis. |
• | Economic Net Income (ENI): $10 million for Q1 2015 and $68 million on an LTM basis, 62% lower than the prior rolling 12-month period ended Q1 2014. |
◦ | GMS carry fund valuations increased 3% in Q1 2015, as compared to 3% appreciation in Q1 2014. The asset-weighted hedge fund performance of our reported funds was 2% in Q1 2015. |
◦ | Net Performance Fees of $13 million for Q1 2015 and $33 million on an LTM basis, compared to $39 million for Q1 2014. Relative to Q1 2014, net performance fees in Q1 2015 were negatively impacted by hedge fund performance fees accrued in early 2014 that were reversed later in 2014. |
• | Total Assets Under Management (AUM): $36.3 billion as of Q1 2015 (-1% LTM). |
◦ | Fee-Earning AUM of $32.0 billion decreased 7% versus Q1 2014. |
◦ | Total hedge fund AUM ended Q1 2015 at $11.3 billion. |
◦ | GMS carry fund AUM ended Q1 2015 at $5.3 billion. |
◦ | Total structured credit and other products AUM ended Q1 2015 at $19.8 billion. |
Global Market Strategies | Quarter | LTM | % Change | |||||||||||||||
$ in millions, except per unit data and where noted | ||||||||||||||||||
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | Q2 14 - Q1 15 | QoQ | YoY | LTM | ||||||||||
Economic Net Income | 56 | 44 | 1 | 13 | 10 | 68 | (27)% | (83)% | (62)% | |||||||||
Fee-Related Earnings | 17 | 17 | 14 | 18 | 5 | 53 | (74)% | (72)% | (33)% | |||||||||
Net Performance Fees | 39 | 28 | (8) | 1 | 13 | 33 | NM | (67)% | (65)% | |||||||||
Realized Net Performance Fees | 5 | 4 | 5 | 5 | 2 | 16 | (51)% | (49)% | (84)% | |||||||||
Distributable Earnings | 22 | 22 | 23 | 24 | 9 | 78 | (64)% | (62)% | (60)% | |||||||||
Total Assets Under Management ($ in billions) | 36.5 | 38.2 | 38.9 | 36.7 | 36.3 | (1)% | (1)% | (1)% | ||||||||||
Fee-Earning Assets Under Management ($ in billions) | 34.3 | 35.4 | 34.8 | 33.9 | 32.0 | (6)% | (7)% | (7)% | ||||||||||
Funds Raised, excluding hedge funds ($ in billions) | 1.5 | 1.7 | 1.4 | 1.2 | 2.5 | 6.8 | 103% | 62% | 62% | |||||||||
Hedge Fund Net Inflows ($ in billions) | 0.3 | 0.5 | 0.3 | (0.1) | (2.1) | (1.3) | NM | NM | NM | |||||||||
Real Assets |
Funds Raised | Equity Invested | Realized Proceeds | Carry Fund Returns | |||||||||||||||||||
Q1 | $2.0 billion | Q1 | $0.6 billion | Q1 | $1.0 billion | Q1 | 2% | |||||||||||||||
YTD: | $2.0 bn | LTM: | $9.6 bn | YTD: | $0.6 bn | LTM: | $2.9 bn | YTD: | $1.0 bn | LTM: | $4.9 bn | YTD: | 2% | LTM: | (1)% | |||||||
• | Distributable Earnings (DE): $18 million for Q1 2015 and $64 million on an LTM basis, both excluding the impact of the French tax judgment of $80 million. The following components impacted DE in Q1 2015. |
◦ | Fee-Related Earnings were $19 million in Q1 2015 and $41 million on an LTM basis, compared to an immaterial amount of FRE in Q1 2014. The increase in Q1 2015 is primarily attributable to higher management fees driven by $11 million in catch-up management fee revenue, compared to $2 million in Q1 2014, and lower general and administrative expenses. |
◦ | Realized Net Performance Fees were $6 million for Q1 2015 and $64 million on an LTM basis, compared to an immaterial amount of realized net performance fees for Q1 2014. Carlyle Realty Partners VI generated the majority of realized performance fees in Q1 2015, compared to no realized performance fees in Q1 2014. |
◦ | Realized Investment (Loss) was ($7) million for Q1 2015 and ($41) million on an LTM basis, both excluding the impact of the French tax judgment of ($80) million. The loss in Q1 2015, excluding the French tax judgment is largely attributable to an ($8) million realized investment loss in Urbplan. |
• | Economic Net Income/(Loss) (ENI): $1 million for Q1 2015 and $(30) million on an LTM basis, compared to $(47) million for the 12-month period ended Q1 2014, all excluding the impact of the French tax judgment. |
◦ | Real Assets carry fund valuations appreciated 2% in Q1 2015, in line with 2% in Q1 2014. |
◦ | Net Performance Fees of $(9) million for Q1 2015 and $(28) million on an LTM basis, compared to $6 million for Q1 2014, with the weakness driven by energy and offset by strong U.S. real estate performance. |
◦ | Investment (Loss) of $(2) million for Q1 2015, excluding the impact of the French tax judgment, primarily attributable to losses from Urbplan. |
• | Total Assets Under Management (AUM): $42.9 billion for Q1 2015 (+5% LTM). |
◦ | Funds Raised in Q1 2015 of $2.0 billion were driven largely by closings in our latest vintage U.S. Real Estate and power funds, our new international energy fund and NGP's latest generation energy fund, NGP XI. |
◦ | Fee-Earning AUM of $27.6 billion in Q1 2015 increased by 1% versus Q1 2014. Fee-Earning AUM does not include $4.5 billion of funds raised for NGP XI, which will turn on as assets are invested or their respective fee holiday expires. |
Real Assets | Quarter | LTM | % Change | |||||||||||||||
$ in millions, except per unit data and where noted | ||||||||||||||||||
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | Q2 14 - Q1 15 | QoQ | YoY | LTM | ||||||||||
Economic Net Income/(Loss) | (17) | 23 | 11 | (76) | (33) | (76) | 56% | (102)% | 18% | |||||||||
Economic Net Income (excluding French tax) | (17) | 34 | 11 | (76) | 1 | (30) | 102% | 107% | 37% | |||||||||
Fee-Related Earnings | 0 | 9 | 3 | 10 | 19 | 41 | 86% | NM | 170% | |||||||||
Net Performance Fees | 6 | 33 | 20 | (72) | (9) | (28) | 88% | (251)% | NM | |||||||||
Realized Net Performance Fees | 0 | 9 | 19 | 31 | 6 | 64 | (81)% | NM | 121% | |||||||||
Distributable Earnings/(Loss) | 2 | 26 | 8 | 12 | (62) | (16) | NM | NM | (144)% | |||||||||
Distributable Earnings (excluding French tax) | 2 | 26 | 8 | 12 | 18 | 64 | 57% | NM | 76% | |||||||||
Total Assets Under Management ($ in billions) | 40.7 | 43.3 | 45.8 | 42.3 | 42.9 | 1% | 5% | 5% | ||||||||||
Fee-Earning Assets Under Management ($ in billions) | 27.4 | 27.9 | 28.2 | 28.4 | 27.6 | (3)% | 1% | 1% | ||||||||||
Investment Solutions |
• | Distributable Earnings (DE): $7 million for Q1 2015 and $40 million on an LTM basis, 13% lower than the prior rolling 12-month period ended Q1 2014. |
◦ | Fee-Related Earnings were $6 million for Q1 2015 and $29 million on an LTM basis, compared to $9 million in Q1 2014. The decrease in Q1 2015 was largely attributable to foreign currency impacts on management fees, partially offset by lower general and administrative expenses. |
◦ | Realized Net Performance Fees were $1 million for Q1 2015 and $11 million on an LTM basis, compared to $2 million for Q1 2014. |
• | Economic Net Income (ENI): $8 million for Q1 2015 and $39 million on an LTM basis, compared to $14 million in Q1 2014. |
◦ | Net Performance Fees were $4 million for Q1 2015 and $15 million on an LTM basis, compared to $6 million in Q1 2014. |
• | Total Assets Under Management (AUM): $49.4 billion for Q1 2015 (-14% LTM). |
◦ | Total AUM declined 14% from Q1 2014 due to negative foreign exchange impact of $9.6 billion, distributions of $10.0 billion, and net redemptions of $1.1 billion, partially offset by $11.3 billion in market appreciation and $2.0 billion in new commitments. |
• | Fee-Earning AUM of $30.5 billion in Q1 2015 declined by 19% versus Q1 2014. Foreign exchange negatively impacted Investment Solutions Fee-Earning AUM by $3.2 billion relative to Q4 2014 and $7.0 billion relative to Q1 2014. Fee-Earning AUM benefited from inflows, including fee-paying commitments of $7.4 billion over the last 12-months. |
Investment Solutions | Quarter | LTM | % Change | |||||||||||||||
$ in millions, except per unit data and where noted | ||||||||||||||||||
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | Q1 2015 | Q2 14 - Q1 15 | QoQ | YoY | LTM | ||||||||||
Economic Net Income | 14 | 14 | 10 | 7 | 8 | 39 | 7% | (45)% | (19)% | |||||||||
Fee-Related Earnings | 9 | 9 | 8 | 6 | 6 | 29 | (13)% | (36)% | (23)% | |||||||||
Net Performance Fees | 6 | 6 | 4 | 2 | 4 | 15 | 95% | (29)% | 40% | |||||||||
Realized Net Performance Fees | 2 | 3 | 2 | 5 | 1 | 11 | (78)% | (37)% | 26% | |||||||||
Distributable Earnings | 11 | 12 | 9 | 12 | 7 | 40 | (42)% | (35)% | (13)% | |||||||||
Total Assets Under Management ($ in billions) | 57.2 | 56.7 | 54.3 | 50.8 | 49.4 | (3)% | (14)% | (14)% | ||||||||||
Fee-Earning Assets Under Management ($ in billions) | 37.5 | 39.4 | 35.3 | 33.1 | 30.5 | (8)% | (19)% | (19)% | ||||||||||
Balance Sheet Highlights |
• | Cash and Cash Equivalents of $1.0 billion. |
• | On-balance sheet investments attributable to unitholders of $371 million, excluding the equity investment by Carlyle in NGP Energy Capital Management. |
• | Net accrued performance fees attributable to unitholders of $1.8 billion. These performance fees are comprised of $3.8 billion of gross accrued performance fees, less $0.2 billion in accrued giveback obligation and $1.8 billion in accrued performance fee compensation and non-controlling interest. |
• | Loans payable and senior notes totaling $1.1 billion. |
Three Months Ended | ||||||||
Mar 31, 2014 | Mar 31, 2015 | |||||||
(Dollars in millions, except unit and per unit data) | ||||||||
Revenues | ||||||||
Fund management fees | $ | 260.3 | $ | 269.5 | ||||
Performance fees | ||||||||
Realized | 251.4 | 326.8 | ||||||
Unrealized | 369.1 | 246.2 | ||||||
Total performance fees | 620.5 | 573.0 | ||||||
Investment income (loss) | ||||||||
Realized | — | 8.9 | ||||||
Unrealized | 6.1 | (2.1 | ) | |||||
Total investment income (loss) | 6.1 | 6.8 | ||||||
Interest and other income | 3.8 | 6.0 | ||||||
Interest and other income of Consolidated Funds | 250.7 | 226.3 | ||||||
Revenue of a consolidated real estate VIE | 6.0 | 55.2 | ||||||
Total revenues | 1,147.4 | 1,136.8 | ||||||
Expenses | ||||||||
Compensation and benefits | ||||||||
Base compensation | 204.6 | 180.1 | ||||||
Equity-based compensation | 74.2 | 89.9 | ||||||
Performance fee related | ||||||||
Realized | 108.7 | 143.0 | ||||||
Unrealized | 221.6 | 173.7 | ||||||
Total compensation and benefits | 609.1 | 586.7 | ||||||
General, administrative and other expenses | 134.3 | 116.8 | ||||||
Interest | 12.2 | 14.6 | ||||||
Interest and other expenses of Consolidated Funds | 264.0 | 237.8 | ||||||
Interest and other expenses of a consolidated real estate VIE | 49.2 | 70.0 | ||||||
Other non-operating expense | 30.2 | 1.1 | ||||||
Total expenses | 1,099.0 | 1,027.0 | ||||||
Other income | ||||||||
Net investment gains of Consolidated Funds | 424.0 | 505.5 | ||||||
Income before provision for income taxes | 472.4 | 615.3 | ||||||
Provision for income taxes | 16.0 | 10.5 | ||||||
Net income | 456.4 | 604.8 | ||||||
Net income attributable to non-controlling interests in consolidated entities | 324.5 | 439.1 | ||||||
Net income attributable to Carlyle Holdings | 131.9 | 165.7 | ||||||
Net income attributable to non-controlling interests in Carlyle Holdings | 107.3 | 126.2 | ||||||
Net income attributable to The Carlyle Group L.P. | $ | 24.6 | $ | 39.5 | ||||
Net income attributable to The Carlyle Group L.P. per common unit | ||||||||
Basic (1) | $ | 0.46 | $ | 0.58 | ||||
Diluted (1) | $ | 0.41 | $ | 0.54 | ||||
Weighted-average common units | ||||||||
Basic | 52,501,412 | 67,684,674 | ||||||
Diluted | 59,453,670 | 72,347,771 |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
Mar 31, 2014 | Dec 31, 2014 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2015 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Segment Revenues | ||||||||||||||||||||
Fund level fee revenues | ||||||||||||||||||||
Fund management fees | $ | 287.8 | $ | 304.9 | $ | 296.6 | $ | 1,102.4 | $ | 1,238.1 | ||||||||||
Portfolio advisory fees, net | 3.8 | 8.5 | 5.8 | 25.1 | 22.1 | |||||||||||||||
Transaction fees, net | 3.2 | 2.7 | 1.8 | 17.5 | 51.8 | |||||||||||||||
Total fee revenues | 294.8 | 316.1 | 304.2 | 1,145.0 | 1,312.0 | |||||||||||||||
Performance fees | ||||||||||||||||||||
Realized | 249.4 | 488.2 | 321.7 | 1,129.1 | 1,396.0 | |||||||||||||||
Unrealized | 355.7 | (158.4 | ) | 280.5 | 1,177.7 | 309.0 | ||||||||||||||
Total performance fees | 605.1 | 329.8 | 602.2 | 2,306.8 | 1,705.0 | |||||||||||||||
Investment income (loss) | ||||||||||||||||||||
Realized | 5.3 | (20.2 | ) | (82.0 | ) | 25.2 | (93.4 | ) | ||||||||||||
Unrealized | (13.2 | ) | 18.2 | 54.0 | (78.7 | ) | 62.2 | |||||||||||||
Total investment income (loss) | (7.9 | ) | (2.0 | ) | (28.0 | ) | (53.5 | ) | (31.2 | ) | ||||||||||
Interest and other income | 4.5 | 4.9 | 6.5 | 15.0 | 24.6 | |||||||||||||||
Total revenues | 896.5 | 648.8 | 884.9 | 3,413.3 | 3,010.4 | |||||||||||||||
Segment Expenses | ||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||
Direct base compensation | 126.7 | 97.8 | 121.9 | 454.7 | 489.2 | |||||||||||||||
Indirect base compensation | 46.1 | 48.2 | 51.0 | 165.3 | 193.4 | |||||||||||||||
Equity-based compensation | 14.0 | 23.1 | 32.3 | 27.1 | 98.7 | |||||||||||||||
Performance fee related | ||||||||||||||||||||
Realized | 109.3 | 224.6 | 143.3 | 455.8 | 624.9 | |||||||||||||||
Unrealized | 199.4 | (33.2 | ) | 177.1 | 712.7 | 287.3 | ||||||||||||||
Total compensation and benefits | 495.5 | 360.5 | 525.6 | 1,815.6 | 1,693.5 | |||||||||||||||
General, administrative, and other indirect expenses | 71.7 | 87.3 | 66.5 | 318.8 | 312.9 | |||||||||||||||
Depreciation and amortization expense | 5.4 | 6.0 | 5.5 | 23.4 | 22.5 | |||||||||||||||
Interest expense | 12.2 | 14.5 | 14.6 | 47.3 | 58.1 | |||||||||||||||
Total expenses | 584.8 | 468.3 | 612.2 | 2,205.1 | 2,087.0 | |||||||||||||||
Economic Net Income | $ | 311.7 | $ | 180.5 | $ | 272.7 | $ | 1,208.2 | $ | 923.4 | ||||||||||
(-) Net Performance Fees | 296.4 | 138.4 | 281.8 | 1,138.3 | 792.8 | |||||||||||||||
(-) Investment Income (Loss) | (7.9 | ) | (2.0 | ) | (28.0 | ) | (53.5 | ) | (31.2 | ) | ||||||||||
(+) Equity-based compensation | 14.0 | 23.1 | 32.3 | 27.1 | 98.7 | |||||||||||||||
(=) Fee Related Earnings | $ | 37.2 | $ | 67.2 | $ | 51.2 | $ | 150.5 | $ | 260.5 | ||||||||||
(+) Realized Net Performance Fees | 140.1 | 263.6 | 178.4 | 673.3 | 771.1 | |||||||||||||||
(+) Realized Investment Income (Loss) | 5.3 | (20.2 | ) | (82.0 | ) | 25.2 | (93.4 | ) | ||||||||||||
(=) Distributable Earnings | $ | 182.6 | $ | 310.6 | $ | 147.6 | $ | 849.0 | $ | 938.2 |
Three Months Ended | ||||||||||||||||||||||||||||
Mar 31, 2015 vs. | ||||||||||||||||||||||||||||
Mar 31, 2014 | Jun 30, 2014 | Sept 30, 2014 | Dec 31, 2014 | Mar 31, 2015 | Mar 31, 2014 | Dec 31, 2014 | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Economic Net Income, Total Segments | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||||
Fund management fees | $ | 287.8 | $ | 317.8 | $ | 318.8 | $ | 304.9 | $ | 296.6 | $ | 8.8 | $ | (8.3 | ) | |||||||||||||
Portfolio advisory fees, net | 3.8 | 3.7 | 4.1 | 8.5 | 5.8 | 2.0 | (2.7 | ) | ||||||||||||||||||||
Transaction fees, net | 3.2 | 29.5 | 17.8 | 2.7 | 1.8 | (1.4 | ) | (0.9 | ) | |||||||||||||||||||
Total fee revenues | 294.8 | 351.0 | 340.7 | 316.1 | 304.2 | 9.4 | (11.9 | ) | ||||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||||
Realized | 249.4 | 410.8 | 175.3 | 488.2 | 321.7 | 72.3 | (166.5 | ) | ||||||||||||||||||||
Unrealized | 355.7 | 138.3 | 48.6 | (158.4 | ) | 280.5 | (75.2 | ) | 438.9 | |||||||||||||||||||
Total performance fees | 605.1 | 549.1 | 223.9 | 329.8 | 602.2 | (2.9 | ) | 272.4 | ||||||||||||||||||||
Investment income (loss) | ||||||||||||||||||||||||||||
Realized | 5.3 | 11.5 | (2.7 | ) | (20.2 | ) | (82.0 | ) | (87.3 | ) | (61.8 | ) | ||||||||||||||||
Unrealized | (13.2 | ) | (16.2 | ) | 6.2 | 18.2 | 54.0 | 67.2 | 35.8 | |||||||||||||||||||
Total investment income (loss) | (7.9 | ) | (4.7 | ) | 3.5 | (2.0 | ) | (28.0 | ) | (20.1 | ) | (26.0 | ) | |||||||||||||||
Interest and other income | 4.5 | 4.7 | 8.5 | 4.9 | 6.5 | 2.0 | 1.6 | |||||||||||||||||||||
Total revenues | 896.5 | 900.1 | 576.6 | 648.8 | 884.9 | (11.6 | ) | 236.1 | ||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||||
Direct base compensation | 126.7 | 131.2 | 138.3 | 97.8 | 121.9 | (4.8 | ) | 24.1 | ||||||||||||||||||||
Indirect base compensation | 46.1 | 47.2 | 47.0 | 48.2 | 51.0 | 4.9 | 2.8 | |||||||||||||||||||||
Equity-based compensation | 14.0 | 19.5 | 23.8 | 23.1 | 32.3 | 18.3 | 9.2 | |||||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||||
Realized | 109.3 | 179.5 | 77.5 | 224.6 | 143.3 | 34.0 | (81.3 | ) | ||||||||||||||||||||
Unrealized | 199.4 | 136.2 | 7.2 | (33.2 | ) | 177.1 | (22.3 | ) | 210.3 | |||||||||||||||||||
Total compensation and benefits | 495.5 | 513.6 | 293.8 | 360.5 | 525.6 | 30.1 | 165.1 | |||||||||||||||||||||
General, administrative, and other indirect expenses | 71.7 | 77.0 | 82.1 | 87.3 | 66.5 | (5.2 | ) | (20.8 | ) | |||||||||||||||||||
Depreciation and amortization expense | 5.4 | 5.6 | 5.4 | 6.0 | 5.5 | 0.1 | (0.5 | ) | ||||||||||||||||||||
Interest expense | 12.2 | 14.5 | 14.5 | 14.5 | 14.6 | 2.4 | 0.1 | |||||||||||||||||||||
Total expenses | 584.8 | 610.7 | 395.8 | 468.3 | 612.2 | 27.4 | 143.9 | |||||||||||||||||||||
Economic Net Income | $ | 311.7 | $ | 289.4 | $ | 180.8 | $ | 180.5 | $ | 272.7 | $ | (39.0 | ) | $ | 92.2 | |||||||||||||
(-) Net Performance Fees | 296.4 | 233.4 | 139.2 | 138.4 | 281.8 | (14.6 | ) | 143.4 | ||||||||||||||||||||
(-) Investment Income (Loss) | (7.9 | ) | (4.7 | ) | 3.5 | (2.0 | ) | (28.0 | ) | (20.1 | ) | (26.0 | ) | |||||||||||||||
(+) Equity-based compensation | 14.0 | 19.5 | 23.8 | 23.1 | 32.3 | 18.3 | 9.2 | |||||||||||||||||||||
(=) Fee Related Earnings | $ | 37.2 | $ | 80.2 | $ | 61.9 | $ | 67.2 | $ | 51.2 | $ | 14.0 | $ | (16.0 | ) | |||||||||||||
(+) Realized Net Performance Fees | 140.1 | 231.3 | 97.8 | 263.6 | 178.4 | 38.3 | (85.2 | ) | ||||||||||||||||||||
(+) Realized Investment Income (Loss) | 5.3 | 11.5 | (2.7 | ) | (20.2 | ) | (82.0 | ) | (87.3 | ) | (61.8 | ) | ||||||||||||||||
(=) Distributable Earnings | $ | 182.6 | $ | 323.0 | $ | 157.0 | $ | 310.6 | $ | 147.6 | $ | (35.0 | ) | $ | (163.0 | ) |
Three Months Ended | ||||||||||||||||||||||||||||
Mar 31, 2015 vs. | ||||||||||||||||||||||||||||
Corporate Private Equity | Mar 31, 2014 | Jun 30, 2014 | Sept 30, 2014 | Dec 31, 2014 | Mar 31, 2015 | Mar 31, 2014 | Dec 31, 2014 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||||
Fund management fees | $ | 129.8 | $ | 147.2 | $ | 151.5 | $ | 136.3 | $ | 134.3 | $ | 4.5 | $ | (2.0 | ) | |||||||||||||
Portfolio advisory fees, net | 3.5 | 3.3 | 3.8 | 7.8 | 5.2 | 1.7 | (2.6 | ) | ||||||||||||||||||||
Transaction fees, net | 3.2 | 29.4 | 17.0 | 1.8 | 1.5 | (1.7 | ) | (0.3 | ) | |||||||||||||||||||
Total fee revenues | 136.5 | 179.9 | 172.3 | 145.9 | 141.0 | 4.5 | (4.9 | ) | ||||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||||
Realized | 234.7 | 387.7 | 125.0 | 408.9 | 306.0 | 71.3 | (102.9 | ) | ||||||||||||||||||||
Unrealized | 212.9 | (76.2 | ) | 100.8 | (40.3 | ) | 200.7 | (12.2 | ) | 241.0 | ||||||||||||||||||
Total performance fees | 447.6 | 311.5 | 225.8 | 368.6 | 506.7 | 59.1 | 138.1 | |||||||||||||||||||||
Investment income | ||||||||||||||||||||||||||||
Realized | 1.9 | 2.0 | 6.4 | 7.4 | 2.7 | 0.8 | (4.7 | ) | ||||||||||||||||||||
Unrealized | 5.4 | 4.0 | 3.8 | 0.7 | 7.4 | 2.0 | 6.7 | |||||||||||||||||||||
Total investment income | 7.3 | 6.0 | 10.2 | 8.1 | 10.1 | 2.8 | 2.0 | |||||||||||||||||||||
Interest and other income | 2.2 | 1.8 | 4.7 | 2.1 | 3.2 | 1.0 | 1.1 | |||||||||||||||||||||
Total revenues | 593.6 | 499.2 | 413.0 | 524.7 | 661.0 | 67.4 | 136.3 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||||
Direct base compensation | 59.5 | 62.9 | 67.0 | 33.0 | 53.7 | (5.8 | ) | 20.7 | ||||||||||||||||||||
Indirect base compensation | 22.0 | 25.5 | 25.9 | 28.4 | 26.3 | 4.3 | (2.1 | ) | ||||||||||||||||||||
Equity-based compensation | 7.1 | 10.1 | 12.9 | 12.4 | 17.3 | 10.2 | 4.9 | |||||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||||
Realized | 101.3 | 172.4 | 52.7 | 186.1 | 137.0 | 35.7 | (49.1 | ) | ||||||||||||||||||||
Unrealized | 100.5 | (27.8 | ) | 49.4 | (25.0 | ) | 95.7 | (4.8 | ) | 120.7 | ||||||||||||||||||
Total compensation and benefits | 290.4 | 243.1 | 207.9 | 234.9 | 330.0 | 39.6 | 95.1 | |||||||||||||||||||||
General, administrative, and other indirect expenses | 35.4 | 37.7 | 35.5 | 42.5 | 31.7 | (3.7 | ) | (10.8 | ) | |||||||||||||||||||
Depreciation and amortization expense | 2.7 | 2.7 | 2.7 | 2.9 | 2.7 | — | (0.2 | ) | ||||||||||||||||||||
Interest expense | 6.7 | 8.0 | 7.9 | 8.0 | 7.6 | 0.9 | (0.4 | ) | ||||||||||||||||||||
Total expenses | 335.2 | 291.5 | 254.0 | 288.3 | 372.0 | 36.8 | 83.7 | |||||||||||||||||||||
Economic Net Income | $ | 258.4 | $ | 207.7 | $ | 159.0 | $ | 236.4 | $ | 289.0 | $ | 30.6 | $ | 52.6 | ||||||||||||||
(-) Net Performance Fees | 245.8 | 166.9 | 123.7 | 207.5 | 274.0 | 28.2 | 66.5 | |||||||||||||||||||||
(-) Investment Income | 7.3 | 6.0 | 10.2 | 8.1 | 10.1 | 2.8 | 2.0 | |||||||||||||||||||||
(+) Equity-based compensation | 7.1 | 10.1 | 12.9 | 12.4 | 17.3 | 10.2 | 4.9 | |||||||||||||||||||||
(=) Fee Related Earnings | $ | 12.4 | $ | 44.9 | $ | 38.0 | $ | 33.2 | $ | 22.2 | $ | 9.8 | $ | (11.0 | ) | |||||||||||||
(+) Realized Net Performance Fees | 133.4 | 215.3 | 72.3 | 222.8 | 169.0 | 35.6 | (53.8 | ) | ||||||||||||||||||||
(+) Realized Investment Income | 1.9 | 2.0 | 6.4 | 7.4 | 2.7 | 0.8 | (4.7 | ) | ||||||||||||||||||||
(=) Distributable Earnings | $ | 147.7 | $ | 262.2 | $ | 116.7 | $ | 263.4 | $ | 193.9 | $ | 46.2 | $ | (69.5 | ) |
Three Months Ended | ||||||||||||||||||||||||||||
Mar 31, 2015 vs. | ||||||||||||||||||||||||||||
Global Market Strategies | Mar 31, 2014 | Jun 30, 2014 | Sept 30, 2014 | Dec 31, 2014 | Mar 31, 2015 | Mar 31, 2014 | Dec 31, 2014 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||||
Fund management fees | $ | 63.2 | $ | 64.1 | $ | 65.6 | $ | 66.4 | $ | 55.5 | $ | (7.7 | ) | $ | (10.9 | ) | ||||||||||||
Portfolio advisory fees, net | 0.1 | 0.1 | 0.2 | 0.5 | 0.5 | 0.4 | — | |||||||||||||||||||||
Transaction fees, net | — | — | 0.2 | — | — | — | — | |||||||||||||||||||||
Total fee revenues | 63.3 | 64.2 | 66.0 | 66.9 | 56.0 | (7.3 | ) | (10.9 | ) | |||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||||
Realized | 8.3 | 6.7 | 11.3 | 9.7 | 4.6 | (3.7 | ) | (5.1 | ) | |||||||||||||||||||
Unrealized | 49.5 | 45.6 | (10.8 | ) | (7.8 | ) | 18.7 | (30.8 | ) | 26.5 | ||||||||||||||||||
Total performance fees | 57.8 | 52.3 | 0.5 | 1.9 | 23.3 | (34.5 | ) | 21.4 | ||||||||||||||||||||
Investment income (loss) | ||||||||||||||||||||||||||||
Realized | 1.3 | 1.4 | 4.1 | 1.6 | 1.6 | 0.3 | — | |||||||||||||||||||||
Unrealized | 1.9 | 1.2 | (4.3 | ) | (2.4 | ) | (4.2 | ) | (6.1 | ) | (1.8 | ) | ||||||||||||||||
Total investment income (loss) | 3.2 | 2.6 | (0.2 | ) | (0.8 | ) | (2.6 | ) | (5.8 | ) | (1.8 | ) | ||||||||||||||||
Interest and other income | 1.3 | 1.5 | 1.9 | 1.1 | 1.8 | 0.5 | 0.7 | |||||||||||||||||||||
Total revenues | 125.6 | 120.6 | 68.2 | 69.1 | 78.5 | (47.1 | ) | 9.4 | ||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||||
Direct base compensation | 27.5 | 26.3 | 29.9 | 26.9 | 28.2 | 0.7 | 1.3 | |||||||||||||||||||||
Indirect base compensation | 6.0 | 6.0 | 6.9 | 5.7 | 8.8 | 2.8 | 3.1 | |||||||||||||||||||||
Equity-based compensation | 2.7 | 3.2 | 4.0 | 4.0 | 5.2 | 2.5 | 1.2 | |||||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||||
Realized | 3.8 | 2.5 | 6.1 | 5.0 | 2.3 | (1.5 | ) | (2.7 | ) | |||||||||||||||||||
Unrealized | 14.8 | 21.6 | 2.6 | (3.6 | ) | 8.2 | (6.6 | ) | 11.8 | |||||||||||||||||||
Total compensation and benefits | 54.8 | 59.6 | 49.5 | 38.0 | 52.7 | (2.1 | ) | 14.7 | ||||||||||||||||||||
General, administrative, and other indirect expenses | 11.6 | 13.0 | 14.0 | 14.3 | 12.3 | 0.7 | (2.0 | ) | ||||||||||||||||||||
Depreciation and amortization expense | 0.9 | 1.0 | 1.0 | 1.1 | 1.1 | 0.2 | — | |||||||||||||||||||||
Interest expense | 2.1 | 2.6 | 2.5 | 2.5 | 2.8 | 0.7 | 0.3 | |||||||||||||||||||||
Total expenses | 69.4 | 76.2 | 67.0 | 55.9 | 68.9 | (0.5 | ) | 13.0 | ||||||||||||||||||||
Economic Net Income | $ | 56.2 | $ | 44.4 | $ | 1.2 | $ | 13.2 | $ | 9.6 | $ | (46.6 | ) | $ | (3.6 | ) | ||||||||||||
(-) Net Performance Fees | 39.2 | 28.2 | (8.2 | ) | 0.5 | 12.8 | (26.4 | ) | 12.3 | |||||||||||||||||||
(-) Investment Income (Loss) | 3.2 | 2.6 | (0.2 | ) | (0.8 | ) | (2.6 | ) | (5.8 | ) | (1.8 | ) | ||||||||||||||||
(+) Equity-based compensation | 2.7 | 3.2 | 4.0 | 4.0 | 5.2 | 2.5 | 1.2 | |||||||||||||||||||||
(=) Fee Related Earnings | $ | 16.5 | $ | 16.8 | $ | 13.6 | $ | 17.5 | $ | 4.6 | $ | (11.9 | ) | $ | (12.9 | ) | ||||||||||||
(+) Realized Net Performance Fees | 4.5 | 4.2 | 5.2 | 4.7 | 2.3 | (2.2 | ) | (2.4 | ) | |||||||||||||||||||
(+) Realized Investment Income | 1.3 | 1.4 | 4.1 | 1.6 | 1.6 | 0.3 | — | |||||||||||||||||||||
(=) Distributable Earnings | $ | 22.3 | $ | 22.4 | $ | 22.9 | $ | 23.8 | $ | 8.5 | $ | (13.8 | ) | $ | (15.3 | ) |
Three Months Ended | ||||||||||||||||||||||||||||
Mar 31, 2015 vs. | ||||||||||||||||||||||||||||
Real Assets | Mar 31, 2014 | Jun 30, 2014 | Sept 30, 2014 | Dec 31, 2014 | Mar 31, 2015 | Mar 31, 2014 | Dec 31, 2014 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||||
Fund management fees | $ | 50.3 | $ | 59.6 | $ | 55.7 | $ | 58.2 | $ | 66.3 | $ | 16.0 | $ | 8.1 | ||||||||||||||
Portfolio advisory fees, net | 0.2 | 0.3 | 0.1 | 0.2 | 0.1 | (0.1 | ) | (0.1 | ) | |||||||||||||||||||
Transaction fees, net | — | 0.1 | 0.6 | 0.9 | 0.3 | 0.3 | (0.6 | ) | ||||||||||||||||||||
Total fee revenues | 50.5 | 60.0 | 56.4 | 59.3 | 66.7 | 16.2 | 7.4 | |||||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||||
Realized | 0.5 | 9.4 | 28.4 | 50.2 | 7.7 | 7.2 | (42.5 | ) | ||||||||||||||||||||
Unrealized | 14.0 | 46.4 | 9.5 | (109.4 | ) | 14.1 | 0.1 | 123.5 | ||||||||||||||||||||
Total performance fees | 14.5 | 55.8 | 37.9 | (59.2 | ) | 21.8 | 7.3 | 81.0 | ||||||||||||||||||||
Investment income (loss) | ||||||||||||||||||||||||||||
Realized | 2.1 | 8.1 | (13.2 | ) | (29.2 | ) | (86.4 | ) | (88.5 | ) | (57.2 | ) | ||||||||||||||||
Unrealized | (20.6 | ) | (21.6 | ) | 6.7 | 19.8 | 50.2 | 70.8 | 30.4 | |||||||||||||||||||
Total investment income (loss) | (18.5 | ) | (13.5 | ) | (6.5 | ) | (9.4 | ) | (36.2 | ) | (17.7 | ) | (26.8 | ) | ||||||||||||||
Interest and other income | 0.7 | 1.2 | 1.4 | 1.4 | 1.1 | 0.4 | (0.3 | ) | ||||||||||||||||||||
Total revenues | 47.2 | 103.5 | 89.2 | (7.9 | ) | 53.4 | 6.2 | 61.3 | ||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||||
Direct base compensation | 18.7 | 21.3 | 20.7 | 14.5 | 18.5 | (0.2 | ) | 4.0 | ||||||||||||||||||||
Indirect base compensation | 14.3 | 11.7 | 9.9 | 12.6 | 12.3 | (2.0 | ) | (0.3 | ) | |||||||||||||||||||
Equity-based compensation | 3.5 | 5.1 | 5.4 | 5.2 | 7.1 | 3.6 | 1.9 | |||||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||||
Realized | 0.2 | 0.5 | 9.9 | 19.5 | 1.8 | 1.6 | (17.7 | ) | ||||||||||||||||||||
Unrealized | 8.4 | 22.8 | 8.0 | (7.1 | ) | 28.9 | 20.5 | 36.0 | ||||||||||||||||||||
Total compensation and benefits | 45.1 | 61.4 | 53.9 | 44.7 | 68.6 | 23.5 | 23.9 | |||||||||||||||||||||
General, administrative, and other indirect expenses | 15.5 | 15.7 | 21.1 | 19.9 | 14.6 | (0.9 | ) | (5.3 | ) | |||||||||||||||||||
Depreciation and amortization expense | 0.9 | 0.9 | 0.8 | 1.0 | 0.9 | — | (0.1 | ) | ||||||||||||||||||||
Interest expense | 2.2 | 2.5 | 2.6 | 2.6 | 2.7 | 0.5 | 0.1 | |||||||||||||||||||||
Total expenses | 63.7 | 80.5 | 78.4 | 68.2 | 86.8 | 23.1 | 18.6 | |||||||||||||||||||||
Economic Net Income (Loss) | $ | (16.5 | ) | $ | 23.0 | $ | 10.8 | $ | (76.1 | ) | $ | (33.4 | ) | $ | (16.9 | ) | $ | 42.7 | ||||||||||
(-) Net Performance Fees | 5.9 | 32.5 | 20.0 | (71.6 | ) | (8.9 | ) | (14.8 | ) | 62.7 | ||||||||||||||||||
(-) Investment Income (Loss) | (18.5 | ) | (13.5 | ) | (6.5 | ) | (9.4 | ) | (36.2 | ) | (17.7 | ) | (26.8 | ) | ||||||||||||||
(+) Equity-based compensation | 3.5 | 5.1 | 5.4 | 5.2 | 7.1 | 3.6 | 1.9 | |||||||||||||||||||||
(=) Fee Related Earnings | $ | (0.4 | ) | $ | 9.1 | $ | 2.7 | $ | 10.1 | $ | 18.8 | $ | 19.2 | $ | 8.7 | |||||||||||||
(+) Realized Net Performance Fees | 0.3 | 8.9 | 18.5 | 30.7 | 5.9 | 5.6 | (24.8 | ) | ||||||||||||||||||||
(+) Realized Investment Income (Loss) | 2.1 | 8.1 | (13.2 | ) | (29.2 | ) | (86.4 | ) | (88.5 | ) | (57.2 | ) | ||||||||||||||||
(=) Distributable Earnings | $ | 2.0 | $ | 26.1 | $ | 8.0 | $ | 11.6 | $ | (61.7 | ) | $ | (63.7 | ) | $ | (73.3 | ) |
Three Months Ended | ||||||||||||||||||||||||||||
Mar 31, 2015 vs. | ||||||||||||||||||||||||||||
Investment Solutions | Mar 31, 2014 | Jun 30, 2014 | Sept 30, 2014 | Dec 31, 2014 | Mar 31, 2015 | Mar 31, 2014 | Dec 31, 2014 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||||
Fund management fees | $ | 44.5 | $ | 46.9 | $ | 46.0 | $ | 44.0 | $ | 40.5 | $ | (4.0 | ) | $ | (3.5 | ) | ||||||||||||
Portfolio advisory fees, net | — | — | — | — | — | — | — | |||||||||||||||||||||
Transaction fees, net | — | — | — | — | — | — | — | |||||||||||||||||||||
Total fee revenues | 44.5 | 46.9 | 46.0 | 44.0 | 40.5 | (4.0 | ) | (3.5 | ) | |||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||||
Realized | 5.9 | 7.0 | 10.6 | 19.4 | 3.4 | (2.5 | ) | (16.0 | ) | |||||||||||||||||||
Unrealized | 79.3 | 122.5 | (50.9 | ) | (0.9 | ) | 47.0 | (32.3 | ) | 47.9 | ||||||||||||||||||
Total performance fees | 85.2 | 129.5 | (40.3 | ) | 18.5 | 50.4 | (34.8 | ) | 31.9 | |||||||||||||||||||
Investment income | ||||||||||||||||||||||||||||
Realized | — | — | — | — | 0.1 | 0.1 | 0.1 | |||||||||||||||||||||
Unrealized | 0.1 | 0.2 | — | 0.1 | 0.6 | 0.5 | 0.5 | |||||||||||||||||||||
Total investment income | 0.1 | 0.2 | — | 0.1 | 0.7 | 0.6 | 0.6 | |||||||||||||||||||||
Interest and other income | 0.3 | 0.2 | 0.5 | 0.3 | 0.4 | 0.1 | 0.1 | |||||||||||||||||||||
Total revenues | 130.1 | 176.8 | 6.2 | 62.9 | 92.0 | (38.1 | ) | 29.1 | ||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||||
Direct base compensation | 21.0 | 20.7 | 20.7 | 23.4 | 21.5 | 0.5 | (1.9 | ) | ||||||||||||||||||||
Indirect base compensation | 3.8 | 4.0 | 4.3 | 1.5 | 3.6 | (0.2 | ) | 2.1 | ||||||||||||||||||||
Equity-based compensation | 0.7 | 1.1 | 1.5 | 1.5 | 2.7 | 2.0 | 1.2 | |||||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||||
Realized | 4.0 | 4.1 | 8.8 | 14.0 | 2.2 | (1.8 | ) | (11.8 | ) | |||||||||||||||||||
Unrealized | 75.7 | 119.6 | (52.8 | ) | 2.5 | 44.3 | (31.4 | ) | 41.8 | |||||||||||||||||||
Total compensation and benefits | 105.2 | 149.5 | (17.5 | ) | 42.9 | 74.3 | (30.9 | ) | 31.4 | |||||||||||||||||||
General, administrative, and other indirect expenses | 9.2 | 10.6 | 11.5 | 10.6 | 7.9 | (1.3 | ) | (2.7 | ) | |||||||||||||||||||
Depreciation and amortization expense | 0.9 | 1.0 | 0.9 | 1.0 | 0.8 | (0.1 | ) | (0.2 | ) | |||||||||||||||||||
Interest expense | 1.2 | 1.4 | 1.5 | 1.4 | 1.5 | 0.3 | 0.1 | |||||||||||||||||||||
Total expenses | 116.5 | 162.5 | (3.6 | ) | 55.9 | 84.5 | (32.0 | ) | 28.6 | |||||||||||||||||||
Economic Net Income | $ | 13.6 | $ | 14.3 | $ | 9.8 | $ | 7.0 | $ | 7.5 | $ | (6.1 | ) | $ | 0.5 | |||||||||||||
(-) Net Performance Fees | 5.5 | 5.8 | 3.7 | 2.0 | 3.9 | (1.6 | ) | 1.9 | ||||||||||||||||||||
(-) Investment Income | 0.1 | 0.2 | — | 0.1 | 0.7 | 0.6 | 0.6 | |||||||||||||||||||||
(+) Equity-based compensation | 0.7 | 1.1 | 1.5 | 1.5 | 2.7 | 2.0 | 1.2 | |||||||||||||||||||||
(=) Fee Related Earnings | $ | 8.7 | $ | 9.4 | $ | 7.6 | $ | 6.4 | $ | 5.6 | $ | (3.1 | ) | $ | (0.8 | ) | ||||||||||||
(+) Realized Net Performance Fees | 1.9 | 2.9 | 1.8 | 5.4 | 1.2 | (0.7 | ) | (4.2 | ) | |||||||||||||||||||
(+) Realized Investment Income | — | — | — | — | 0.1 | 0.1 | 0.1 | |||||||||||||||||||||
(=) Distributable Earnings | $ | 10.6 | $ | 12.3 | $ | 9.4 | $ | 11.8 | $ | 6.9 | $ | (3.7 | ) | $ | (4.9 | ) |
Corporate Private Equity | Global Market Strategies (8) | Real Assets | Investment Solutions (9) | Total | ||||||||||||||||||||||||||||||||||||||||||||||
(USD in millions) | Available Capital | Fair Value of Capital | Total AUM | Available Capital | Fair Value of Capital | Total AUM | Available Capital | Fair Value of Capital | Total AUM | Available Capital | Fair Value of Capital | Total AUM | Available Capital | Fair Value of Capital | Total AUM | |||||||||||||||||||||||||||||||||||
Balance, As of December 31, 2014 | $ | 24,439 | $ | 40,229 | $ | 64,668 | $ | 1,512 | $ | 35,229 | $ | 36,741 | $ | 15,714 | $ | 26,581 | $ | 42,295 | $ | 16,206 | $ | 34,563 | $ | 50,769 | $ | 57,871 | $ | 136,602 | $ | 194,473 | ||||||||||||||||||||
Commitments (1) | 1,685 | — | 1,685 | 1,321 | — | 1,321 | 1,890 | — | 1,890 | 1,944 | — | 1,944 | 6,840 | — | 6,840 | |||||||||||||||||||||||||||||||||||
Capital Called, net (2) | (1,024 | ) | 907 | (117 | ) | (65 | ) | 147 | 82 | (912 | ) | 883 | (29 | ) | (1,362 | ) | 1,263 | (99 | ) | (3,363 | ) | 3,200 | (163 | ) | ||||||||||||||||||||||||||
Distributions (3) | 194 | (4,158 | ) | (3,964 | ) | 55 | (115 | ) | (60 | ) | 39 | (1,094 | ) | (1,055 | ) | 54 | (2,885 | ) | (2,831 | ) | 342 | (8,252 | ) | (7,910 | ) | |||||||||||||||||||||||||
Subscriptions, net of Redemptions (4) | — | — | — | — | (2,142 | ) | (2,142 | ) | — | — | — | — | (5 | ) | (5 | ) | — | (2,147 | ) | (2,147 | ) | |||||||||||||||||||||||||||||
Changes in CLO collateral balances (5) | — | — | — | — | 883 | 883 | — | — | — | — | — | — | — | 883 | 883 | |||||||||||||||||||||||||||||||||||
Market Appreciation/(Depreciation) (6) | — | 3,149 | 3,149 | — | 147 | 147 | — | — | — | — | 4,016 | 4,016 | — | 7,312 | 7,312 | |||||||||||||||||||||||||||||||||||
Foreign Exchange and other (7) | (455 | ) | (918 | ) | (1,373 | ) | 3 | (639 | ) | (636 | ) | (49 | ) | (195 | ) | (244 | ) | (750 | ) | (3,626 | ) | (4,376 | ) | (1,251 | ) | (5,378 | ) | (6,629 | ) | |||||||||||||||||||||
Balance, As of March 31, 2015 | $ | 24,839 | $ | 39,209 | $ | 64,048 | $ | 2,826 | $ | 33,510 | $ | 36,336 | $ | 16,682 | $ | 26,175 | $ | 42,857 | $ | 16,092 | $ | 33,326 | $ | 49,418 | $ | 60,439 | $ | 132,220 | $ | 192,659 | ||||||||||||||||||||
Balance, As of March 31, 2014 | $ | 23,909 | $ | 40,551 | $ | 64,460 | $ | 1,497 | $ | 35,040 | $ | 36,537 | $ | 10,115 | $ | 30,588 | $ | 40,703 | $ | 20,755 | $ | 36,490 | $ | 57,245 | $ | 56,276 | $ | 142,669 | $ | 198,945 | ||||||||||||||||||||
Commitments (1) | 8,434 | — | 8,434 | 1,471 | — | 1,471 | 9,113 | — | 9,113 | 2,015 | — | 2,015 | 21,033 | — | 21,033 | |||||||||||||||||||||||||||||||||||
Capital Called, net (2) | (7,518 | ) | 6,972 | (546 | ) | (599 | ) | 814 | 215 | (4,012 | ) | 4,199 | 187 | (5,300 | ) | 4,892 | (408 | ) | (17,429 | ) | 16,877 | (552 | ) | |||||||||||||||||||||||||||
Distributions (3) | 1,061 | (15,703 | ) | (14,642 | ) | 458 | (812 | ) | (354 | ) | 1,581 | (8,440 | ) | (6,859 | ) | 424 | (10,451 | ) | (10,027 | ) | 3,524 | (35,406 | ) | (31,882 | ) | |||||||||||||||||||||||||
Subscriptions, net of Redemptions (4) | — | — | — | — | (1,391 | ) | (1,391 | ) | — | — | — | — | (1,061 | ) | (1,061 | ) | — | (2,452 | ) | (2,452 | ) | |||||||||||||||||||||||||||||
Changes in CLO collateral balances (5) | — | — | — | — | 2,426 | 2,426 | — | — | — | — | — | — | — | 2,426 | 2,426 | |||||||||||||||||||||||||||||||||||
Market Appreciation/(Depreciation) (6) | — | 9,635 | 9,635 | — | (1,444 | ) | (1,444 | ) | — | 339 | 339 | — | 11,282 | 11,282 | — | 19,812 | 19,812 | |||||||||||||||||||||||||||||||||
Foreign Exchange and other (7) | (1,047 | ) | (2,246 | ) | (3,293 | ) | (1 | ) | (1,123 | ) | (1,124 | ) | (115 | ) | (511 | ) | (626 | ) | (1,802 | ) | (7,826 | ) | (9,628 | ) | (2,965 | ) | (11,706 | ) | (14,671 | ) | ||||||||||||||||||||
Balance, As of March 31, 2015 | $ | 24,839 | $ | 39,209 | $ | 64,048 | $ | 2,826 | $ | 33,510 | $ | 36,336 | $ | 16,682 | $ | 26,175 | $ | 42,857 | $ | 16,092 | $ | 33,326 | $ | 49,418 | $ | 60,439 | $ | 132,220 | $ | 192,659 |
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||
(USD in millions) | Corporate Private Equity | Global Market Strategies | Real Assets (7) | Investment Solutions | Total | |||||||||||||||
Fee-earning AUM | ||||||||||||||||||||
Balance, Beginning of Period | $ | 40,249 | $ | 33,898 | $ | 28,351 | $ | 33,082 | $ | 135,580 | ||||||||||
Inflows, including Fee-paying Commitments (1) | 704 | 6 | 1,174 | 2,170 | 4,054 | |||||||||||||||
Outflows, including Distributions (2) | (963 | ) | (63 | ) | (1,734 | ) | (1,684 | ) | (4,444 | ) | ||||||||||
Subscriptions, net of Redemptions (3) | — | (2,085 | ) | — | (11 | ) | (2,096 | ) | ||||||||||||
Changes in CLO collateral balances (4) | — | 726 | — | — | 726 | |||||||||||||||
Market Appreciation/(Depreciation) (5) | (5 | ) | 55 | (2 | ) | 66 | 114 | |||||||||||||
Foreign Exchange and other (6) | (622 | ) | (547 | ) | (202 | ) | (3,151 | ) | (4,522 | ) | ||||||||||
Balance, End of Period | $ | 39,363 | $ | 31,990 | $ | 27,587 | $ | 30,472 | $ | 129,412 | ||||||||||
For the Twelve Months Ended March 31, 2015 | ||||||||||||||||||||
(USD in millions) | Corporate Private Equity | Global Market Strategies | Real Assets (7) | Investment Solutions | Total | |||||||||||||||
Fee-earning AUM | ||||||||||||||||||||
Balance, Beginning of Period | $ | 42,858 | $ | 34,346 | $ | 27,416 | $ | 37,468 | $ | 142,088 | ||||||||||
Inflows, including Fee-paying Commitments (1) | 4,831 | (128 | ) | 6,892 | 7,411 | 19,006 | ||||||||||||||
Outflows, including Distributions (2) | (6,606 | ) | (241 | ) | (6,144 | ) | (6,878 | ) | (19,869 | ) | ||||||||||
Subscriptions, net of Redemptions (3) | — | (1,421 | ) | — | (1,027 | ) | (2,448 | ) | ||||||||||||
Changes in CLO collateral balances (4) | — | 1,894 | — | — | 1,894 | |||||||||||||||
Market Appreciation/(Depreciation) (5) | 193 | (1,775 | ) | (11 | ) | 499 | (1,094 | ) | ||||||||||||
Foreign Exchange and other (6) | (1,913 | ) | (685 | ) | (566 | ) | (7,001 | ) | (10,165 | ) | ||||||||||
Balance, End of Period | $ | 39,363 | $ | 31,990 | $ | 27,587 | $ | 30,472 | $ | 129,412 |
TOTAL INVESTMENTS | REALIZED/PARTIALLY REALIZED INVESTMENTS (5) | ||||||||||||||||||||||||||||||||||
As of March 31, 2015 | Inception to March 31, 2015 | ||||||||||||||||||||||||||||||||||
Corporate Private Equity | Fund Inception Date (1) | Committed Capital | Cumulative Invested Capital (2) | Total Fair Value (3) | MOIC(4) | Gross IRR(7) | Net IRR (8) | Cumulative Invested Capital (2) | Total Fair Value (3) | MOIC(4) | Gross IRR(7) | ||||||||||||||||||||||||
(Reported in Local Currency, in Millions) | (Reported in Local Currency, in Millions) | ||||||||||||||||||||||||||||||||||
Fully Invested Funds (6) | |||||||||||||||||||||||||||||||||||
CP II | 10/1994 | $ | 1,331.1 | $ | 1,362.4 | $ | 4,072.2 | 3.0x | 34 | % | 25 | % | $ | 1,362.4 | $ | 4,072.2 | 3.0x | 34 | % | ||||||||||||||||
CP III | 2/2000 | $ | 3,912.7 | $ | 4,031.6 | $ | 10,146.9 | 2.5x | 27 | % | 21 | % | $ | 4,031.6 | $ | 10,146.9 | 2.5x | 27 | % | ||||||||||||||||
CP IV | 12/2004 | $ | 7,850.0 | $ | 7,612.6 | $ | 18,186.1 | 2.4x | 17 | % | 13 | % | $ | 6,827.6 | $ | 17,293.5 | 2.5x | 18 | % | ||||||||||||||||
CP V | 5/2007 | $ | 13,719.7 | $ | 12,815.5 | $ | 25,102.0 | 2.0x | 20 | % | 15 | % | $ | 5,984.1 | $ | 13,901.0 | 2.3x | 24 | % | ||||||||||||||||
CEP I | 12/1997 | € | 1,003.6 | € | 981.6 | € | 2,126.5 | 2.2x | 18 | % | 11 | % | € | 981.6 | € | 2,126.5 | 2.2x | 18 | % | ||||||||||||||||
CEP II | 9/2003 | € | 1,805.4 | € | 2,048.8 | € | 4,069.6 | 2.0x | 37 | % | 21 | % | € | 1,489.4 | € | 3,584.6 | 2.4x | 55 | % | ||||||||||||||||
CEP III | 12/2006 | € | 5,294.9 | € | 4,988.3 | € | 10,426.7 | 2.1x | 20 | % | 15 | % | € | 2,809.8 | € | 6,515.2 | 2.3x | 20 | % | ||||||||||||||||
CAP I | 12/1998 | $ | 750.0 | $ | 627.7 | $ | 2,521.8 | 4.0x | 25 | % | 18 | % | $ | 627.7 | $ | 2,521.8 | 4.0x | 25 | % | ||||||||||||||||
CAP II | 2/2006 | $ | 1,810.0 | $ | 1,633.6 | $ | 2,778.3 | 1.7x | 11 | % | 8 | % | $ | 720.0 | $ | 2,115.0 | 2.9x | 24 | % | ||||||||||||||||
CAP III | 5/2008 | $ | 2,551.6 | $ | 2,503.2 | $ | 4,035.7 | 1.6x | 18 | % | 11 | % | $ | 984.4 | $ | 1,980.0 | 2.0x | 22 | % | ||||||||||||||||
CJP I | 10/2001 | ¥ | 50,000.0 | ¥ | 47,291.4 | ¥ | 140,679.6 | 3.0x | 61 | % | 37 | % | ¥ | 39,756.6 | ¥ | 131,454.6 | 3.3x | 65 | % | ||||||||||||||||
CJP II | 7/2006 | ¥ | 165,600.0 | ¥ | 141,866.7 | ¥ | 182,902.0 | 1.3x | 6 | % | 2 | % | ¥ | 64,306.1 | ¥ | 90,362.1 | 1.4x | 7 | % | ||||||||||||||||
CGFSP I | 9/2008 | $ | 1,100.2 | $ | 1,052.5 | $ | 1,883.7 | 1.8x | 19 | % | 13 | % | $ | 312.8 | $ | 746.4 | 2.4x | 28 | % | ||||||||||||||||
CETP II | 2/2007 | € | 521.6 | € | 431.5 | € | 961.4 | 2.2x | 26 | % | 16 | % | € | 149.8 | € | 550.9 | 3.7x | 34 | % | ||||||||||||||||
CAGP IV | 6/2008 | $ | 1,041.4 | $ | 807.3 | $ | 1,173.5 | 1.5x | 14 | % | 8 | % | $ | 155.0 | $ | 379.3 | 2.4x | 33 | % | ||||||||||||||||
All Other Funds (9) | Various | $ | 3,644.2 | $ | 5,659.6 | 1.6x | 17 | % | 7 | % | $ | 2,729.5 | $ | 4,614.7 | 1.7x | 21 | % | ||||||||||||||||||
Coinvestments and Other (10) | Various | $ | 8,061.9 | $ | 20,449.5 | 2.5x | 36 | % | 33 | % | $ | 5,528.1 | $ | 16,626.5 | 3.0x | 36 | % | ||||||||||||||||||
Total Fully Invested Funds | $ | 54,795.1 | $ | 117,572.3 | 2.1x | 27 | % | 19 | % | $ | 35,899.6 | $ | 89,954.8 | 2.5x | 29 | % | |||||||||||||||||||
Funds in the Investment Period (6) | |||||||||||||||||||||||||||||||||||
CP VI (12) | 5/2012 | $ | 13,000.0 | $ | 3,813.7 | $ | 3,965.4 | 1.0x | NM | NM | |||||||||||||||||||||||||
CEP IV (12) | 8/2013 | € | 2,018.1 | € | 319.2 | € | 299.6 | 0.9x | NM | NM | |||||||||||||||||||||||||
CAP IV (12) | 11/2012 | $ | 3,880.4 | $ | 799.0 | $ | 766.4 | 1.0x | NM | NM | |||||||||||||||||||||||||
CEOF I | 5/2011 | $ | 1,119.1 | $ | 895.3 | $ | 1,306.6 | 1.5x | 31 | % | 21 | % | |||||||||||||||||||||||
CGFSP II (12) | 4/2013 | $ | 1,000.0 | $ | 170.9 | $ | 203.0 | 1.2x | NM | NM | |||||||||||||||||||||||||
All Other Funds (11) | Various | $ | 1,108.5 | $ | 1,078.1 | 1.0x | (3 | )% | (14 | )% | |||||||||||||||||||||||||
Total Funds in the Investment Period | $ | 7,129.9 | $ | 7,641.0 | 1.1x | 8 | % | (5 | )% | $ | 161.0 | $ | 535.3 | 3.3x | 78 | % | |||||||||||||||||||
TOTAL CORPORATE PRIVATE EQUITY (13) | $ | 61,925.1 | $ | 125,213.3 | 2.0x | 27 | % | 19 | % | $ | 36,060.6 | $ | 90,490.1 | 2.5x | 29 | % |
TOTAL INVESTMENTS | REALIZED/PARTIALLY REALIZED INVESTMENTS (5) | ||||||||||||||||||||||||||||||||||
as of March 31, 2015 | as of March 31, 2015 | ||||||||||||||||||||||||||||||||||
Real Assets | Fund Inception Date (1) | Committed Capital | Cumulative Invested Capital (2) | Total Fair Value (3) | MOIC(4) | Gross IRR (7) | Net IRR (8) | Cumulative Invested Capital (2) | Total Fair Value (3) | MOIC(4) | Gross IRR (7) | ||||||||||||||||||||||||
(Reported in Local Currency, in Millions) | (Reported in Local Currency, in Millions) | ||||||||||||||||||||||||||||||||||
Fully Invested Funds (6) | |||||||||||||||||||||||||||||||||||
CRP III | 11/2000 | $ | 564.1 | $ | 522.5 | $ | 1,523.5 | 2.9x | 44 | % | 30 | % | $ | 522.5 | $ | 1,523.5 | 2.9x | 44 | % | ||||||||||||||||
CRP IV | 12/2004 | $ | 950.0 | $ | 1,198.7 | $ | 1,568.9 | 1.3x | 5 | % | 2 | % | $ | 523.6 | $ | 592.8 | 1.1x | 7 | % | ||||||||||||||||
CRP V | 11/2006 | $ | 3,000.0 | $ | 3,290.4 | $ | 4,977.6 | 1.5x | 12 | % | 8 | % | $ | 2,710.4 | $ | 4,214.1 | 1.6x | 14 | % | ||||||||||||||||
CRP VI | 9/2010 | $ | 2,340.0 | $ | 1,905.3 | $ | 3,084.9 | 1.6x | 34 | % | 23 | % | $ | 618.8 | $ | 1,193.0 | 1.9x | 38 | % | ||||||||||||||||
CEREP I | 3/2002 | € | 426.6 | € | 517.0 | € | 691.3 | 1.3x | 12 | % | 7 | % | € | 517.0 | € | 691.3 | 1.3x | 12 | % | ||||||||||||||||
CEREP II | 4/2005 | € | 762.7 | € | 833.8 | € | 128.1 | 0.2x | (100%) | (100%) | € | 594.1 | € | 130.5 | 0.2x | (100%) | |||||||||||||||||||
CEREP III | 5/2007 | € | 2,229.5 | € | 1,983.2 | € | 2,113.2 | 1.1x | 2 | % | (2 | )% | € | 718.3 | € | 1,189.9 | 1.7x | 13 | % | ||||||||||||||||
CIP | 9/2006 | $ | 1,143.7 | $ | 1,011.7 | $ | 1,243.2 | 1.2x | 5 | % | 2 | % | $ | 272.3 | $ | 175.3 | 0.6x | (7%) | |||||||||||||||||
NGP X | 1/2012 | $ | 3,586.0 | $ | 2,568.7 | $ | 3,031.3 | 1.2x | 10 | % | 7 | % | $ | 325.9 | $ | 734.7 | 2.3x | 55 | % | ||||||||||||||||
Energy II | 7/2002 | $ | 1,100.0 | $ | 1,334.8 | $ | 3,262.9 | 2.4x | 81 | % | 55 | % | $ | 827.4 | $ | 3,138.8 | 3.8x | 105 | % | ||||||||||||||||
Energy III | 10/2005 | $ | 3,800.0 | $ | 3,559.9 | $ | 5,735.4 | 1.6x | 11 | % | 8 | % | $ | 1,945.4 | $ | 4,718.3 | 2.4x | 22 | % | ||||||||||||||||
Energy IV | 12/2007 | $ | 5,979.1 | $ | 5,830.0 | $ | 8,271.9 | 1.4x | 13 | % | 8 | % | $ | 2,522.4 | $ | 4,739.0 | 1.9x | 28 | % | ||||||||||||||||
Renew II | 3/2008 | $ | 3,417.5 | $ | 3,018.8 | $ | 4,194.0 | 1.4x | 12 | % | 7 | % | $ | 1,323.7 | $ | 2,105.3 | 1.6x | 16 | % | ||||||||||||||||
All Other Funds (14) | Various | $ | 2,849.8 | $ | 3,112.3 | 1.1x | 4 | % | (1 | )% | $ | 2,170.6 | $ | 2,306.9 | 1.1x | 3 | % | ||||||||||||||||||
Coinvestments and Other (10) | Various | $ | 5,249.9 | $ | 8,181.7 | 1.6x | 17 | % | 13 | % | $ | 2,575.0 | $ | 5,354.2 | 2.1x | 27 | % | ||||||||||||||||||
Total Fully Invested Funds | $ | 35,917.6 | $ | 51,333.7 | 1.4x | 13 | % | 8 | % | $ | 18,300.5 | $ | 32,954.1 | 1.8x | 23 | % | |||||||||||||||||||
Funds in the Investment Period (6) | |||||||||||||||||||||||||||||||||||
CRP VII (12) | 3/2014 | $ | 3,171.6 | $ | 353.6 | $ | 343.7 | 1.0x | n/m | n/m | |||||||||||||||||||||||||
CIEP I (12) | 9/2013 | $ | 2,500.0 | $ | 345.5 | $ | 324.4 | 0.9x | n/m | n/m | |||||||||||||||||||||||||
NGP XI (12) | 6/2014 | $ | 5,325.0 | $ | 95.3 | $ | 95.0 | 1.0x | n/m | n/m | |||||||||||||||||||||||||
All Other Funds (15) | Various | $ | 104.3 | $ | 103.1 | 1.0x | n/m | n/m | |||||||||||||||||||||||||||
Total Funds in the Investment Period | $ | 898.8 | $ | 866.2 | 1.0x | (8 | )% | (44 | )% | $ | — | $ | — | n/a | n/a | ||||||||||||||||||||
TOTAL Real Assets (13) | $ | 36,816.4 | $ | 52,200.0 | 1.4x | 13 | % | 8 | % | $ | 18,300.5 | $ | 32,954.1 | 1.8x | 23 | % |
TOTAL INVESTMENTS | ||||||||||||||||||||||
as of March 31, 2015 | Inception to March 31, 2015 | |||||||||||||||||||||
Global Market Strategies | Fund Inception Date (16) | Committed Capital | Cumulative Invested Capital (17) | Total Fair Value (3) | MOIC (4) | Gross IRR (7) | Net IRR (8) | |||||||||||||||
(Reported in Local Currency, in Millions) | ||||||||||||||||||||||
CSP II | 6/2007 | $ | 1,352.3 | $ | 1,352.3 | $ | 2,446.6 | 1.8x | 17 | % | 12 | % | ||||||||||
CEMOF I | 12/2010 | $ | 1,382.5 | $ | 1,062.7 | $ | 1,408.8 | 1.3x | 24 | % | 13 | % |
TOTAL INVESTMENTS | ||||||||||||||||||||||
as of March 31, 2015 | ||||||||||||||||||||||
Investment Solutions (19) | Vintage Year | Fund Size | Cumulative Invested Capital (2)(20) | Total Fair Value (3)(20) | MOIC (4) | Gross IRR (7) | Net IRR (8) | |||||||||||||||
(Reported in Local Currency, in Millions) | ||||||||||||||||||||||
Fully Committed Funds (18) | ||||||||||||||||||||||
Main Fund I - Fund Investments | 2000 | € | 5,174.6 | € | 4,469.6 | € | 7,305.0 | 1.6x | 12 | % | 12 | % | ||||||||||
Main Fund II - Fund Investments | 2003 | € | 4,545.0 | € | 5,076.2 | € | 7,817.0 | 1.5x | 10 | % | 9 | % | ||||||||||
Main Fund III - Fund Investments | 2005 | € | 11,500.0 | € | 12,920.6 | € | 18,821.5 | 1.5x | 10 | % | 9 | % | ||||||||||
Main Fund IV - Fund Investments | 2009 | € | 4,877.3 | € | 3,597.9 | € | 4,590.1 | 1.3x | 14 | % | 13 | % | ||||||||||
Main Fund I - Secondary Investments | 2002 | € | 519.4 | € | 521.0 | € | 984.1 | 1.9x | 58 | % | 54 | % | ||||||||||
Main Fund II - Secondary Investments | 2003 | € | 998.4 | € | 1,061.6 | € | 1,936.2 | 1.8x | 27 | % | 26 | % | ||||||||||
Main Fund III - Secondary Investments | 2006 | € | 2,250.0 | € | 2,474.2 | € | 3,502.7 | 1.4x | 10 | % | 9 | % | ||||||||||
Main Fund IV - Secondary Investments | 2010 | € | 1,859.1 | € | 1,958.9 | € | 2,991.6 | 1.5x | 20 | % | 19 | % | ||||||||||
Main Fund II - Co-Investments | 2003 | € | 1,090.0 | € | 970.3 | € | 2,627.3 | 2.7x | 43 | % | 41 | % | ||||||||||
Main Fund III - Co-Investments | 2006 | € | 2,760.0 | € | 3,007.7 | € | 4,067.8 | 1.4x | 5 | % | 5 | % | ||||||||||
Main Fund IV - Co-Investments | 2010 | € | 1,475.0 | € | 1,419.2 | € | 2,886.9 | 2.0x | 24 | % | 22 | % | ||||||||||
Main Fund V - Co-Investments | 2012 | € | 1,122.2 | € | 1,041.7 | € | 1,719.5 | 1.7x | 47 | % | 42 | % | ||||||||||
Main Fund II - Mezzanine Investments | 2004 | € | 700.0 | € | 805.9 | € | 1,105.9 | 1.4x | 8 | % | 7 | % | ||||||||||
Main Fund III - Mezzanine Investments | 2006 | € | 2,000.0 | € | 1,887.0 | € | 2,506.3 | 1.3x | 11 | % | 9 | % | ||||||||||
All Other Funds (21) | Various | € | 1,925.1 | € | 2,679.2 | 1.4x | 16 | % | 13 | % | ||||||||||||
Total Fully Committed Funds | € | 43,137.0 | € | 65,541.0 | 1.5x | 12 | % | 12 | % | |||||||||||||
Funds in the Commitment Period (18) | ||||||||||||||||||||||
Main Fund V - Fund Investments | 2012 | € | 5,080.0 | € | 1,301.9 | € | 1,270.7 | 1.0x | (3 | )% | (6 | )% | ||||||||||
Main Fund V - Secondary Investments | 2011 | € | 4,078.3 | € | 2,287.5 | € | 3,050.8 | 1.3x | 28 | % | 25 | % | ||||||||||
Main Fund VI - Co-Investments | 2014 | € | 990.0 | € | 117.7 | € | 117.3 | 1.0x | (1 | )% | (11 | )% | ||||||||||
All Other Funds (21) | Various | € | 75.5 | € | 77.4 | 1.0x | 5 | % | (5 | )% | ||||||||||||
Total Funds in the Commitment Period | € | 3,782.7 | € | 4,516.2 | 1.2x | 20 | % | 16 | % | |||||||||||||
TOTAL INVESTMENT SOLUTIONS | € | 46,919.7 | € | 70,057.2 | 1.5x | 13 | % | 12 | % | |||||||||||||
TOTAL INVESTMENT SOLUTIONS (USD) (22) | $ | 50,337.6 | $ | 75,160.6 | 1.5x |
Remaining Fair Value (1) | Unrealized MOIC (2) | Total MOIC (3) | % Invested (4) | In Accrued Carry/ (Clawback) (5) | LTM Realized Carry (6) | Catch-up Rate | Fee Initiation Date (7) | Quarters Since Fee Initiation | Original Investment Period End Date | |||
As of March 31, 2015 | ||||||||||||
Corporate Private Equity | (Reported in Local Currency, in Millions) | |||||||||||
CP V | $ | 12,268.1 | 2.1x | 2.0x | 93% | X | X | 100% | Jun-07 | 32 | May-13 | |
CEP III | € | 4,651.2 | 2.3x | 2.1x | 94% | X | X | 100% | Jul-07 | 31 | Dec-12 | |
CP VI | $ | 3,854.7 | 1.0x | 1.0x | 29% | 100% | Jun-13 | 8 | May-18 | |||
CAP III | $ | 2,395.9 | 1.1x | 1.6x | 98% | X | 100% | Jun-08 | 28 | May-14 | ||
CP IV | $ | 1,657.1 | 1.6x | 2.4x | 97% | X | X | 80% | Apr-05 | 40 | Dec-10 | |
CGFSP I | $ | 1,159.9 | 1.5x | 1.8x | 96% | X | X | 100% | Oct-08 | 26 | Sep-14 | |
CAP II | $ | 1,008.2 | 1.1x | 1.7x | 90% | (X) | 80% | Mar-06 | 37 | Feb-12 | ||
CEOF I | $ | 1,002.9 | 1.3x | 1.5x | 80% | X | 80% | Sep-11 | 15 | May-17 | ||
CAP IV | $ | 999.0 | 1.0x | 1.0x | 21% | 100% | Jul-13 | 7 | Nov-18 | |||
CJP II | ¥ | 102,881.8 | 1.3x | 1.3x | 86% | 80% | Oct-06 | 34 | Jul-12 | |||
CAGP IV | $ | 795.0 | 1.2x | 1.5x | 78% | 100% | Aug-08 | 27 | Jun-14 | |||
CEP II | € | 504.1 | 0.9x | 2.0x | 113% | X | 80% | Sep-03 | 47 | Sep-08 | ||
CETP II | € | 475.1 | 1.6x | 2.2x | 83% | X | X | 100% | Jan-08 | 29 | Jul-13 | |
CEP IV | € | 302.7 | 0.9x | 0.9x | 16% | 100% | Sep-14 | 3 | Aug-19 | |||
CGFSP II | $ | 209.9 | 1.2x | 1.2x | 17% | 100% | Jun-13 | 8 | Dec-17 | |||
All Other Funds (8) | $ | 2,205.4 | 1.1x | 2.2x | NM | NM | ||||||
Coinvestment and Other (9) | $ | 4,415.2 | 1.9x | 2.5x | NM | NM | ||||||
Total Corporate Private Equity (12) | $ | 39,194.2 | 1.5x | 2.0x | ||||||||
Real Assets | ||||||||||||
Energy IV | $ | 3,329.0 | 0.9x | 1.4x | 98% | (X) | X | 80% | Feb-08 | 29 | Dec-13 | |
NGP X | $ | 2,667.5 | 1.2x | 1.2x | 72% | X | 80% | Jan-12 | 13 | May-17 | ||
Renew II | $ | 2,210.4 | 1.2x | 1.4x | 88% | (X) | 80% | Mar-08 | 29 | May-14 | ||
CRP VI | $ | 1,892.3 | 1.4x | 1.6x | 81% | X | X | 50% | Mar-11 | 17 | Mar-16 | |
Energy III | $ | 1,244.1 | 0.6x | 1.6x | 94% | (X) | 80% | Nov-05 | 38 | Oct-11 | ||
CRP V | $ | 1,193.5 | 1.7x | 1.5x | 110% | X | 50% | Nov-06 | 34 | Nov-11 | ||
CEREP III | € | 1,013.7 | 0.8x | 1.1x | 89% | 67% | Jun-07 | 32 | May-11 | |||
CRP IV | $ | 975.9 | 1.4x | 1.3x | 126% | 50% | Jan-05 | 41 | Dec-09 | |||
CIP | $ | 926.6 | 1.6x | 1.2x | 88% | 80% | Oct-06 | 34 | Sep-12 | |||
CRP III | $ | 368.7 | 60.1x | 2.9x | 93% | X | X | 50% | Mar-01 | 57 | May-05 | |
CIEP I | $ | 365.0 | 0.9x | 0.9x | 14% | 80% | Oct-13 | 6 | Sep-19 | |||
CRP VII | $ | 336.0 | 1.0x | 1.0x | 11% | 80% | Jun-14 | 4 | Mar-19 | |||
Energy II | $ | 142.7 | 0.3x | 2.4x | 121% | (X) | 80% | Jan-03 | 49 | Jul-08 | ||
All Other Funds (10) | $ | 589.3 | 0.8x | 0.9x | NM | NM | ||||||
Coinvestment and Other (9) | $ | 3,107.1 | 1.3x | 1.6x | NM | NM | ||||||
Total Real Assets (12) | $ | 20,435.3 | 1.1x | 1.4x | ||||||||
Global Market Strategies | ||||||||||||
CEMOF I | $ | 1,018.0 | 1.1x | 1.3x | 77% | X | 100% | Dec-10 | 18 | Dec-15 | ||
CSP II | $ | 417.0 | 0.9x | 1.8x | 100% | X | X | 80% | Dec-07 | 30 | Jun-11 | |
All Other Funds (11) | $ | 667.0 | 1.2x | 1.5x | NM | NM | ||||||
Coinvestment and Other (9) | $ | 409.6 | 1.1x | 1.3x | NM | NM | ||||||
Total Global Market Strategies | $ | 2,511.6 | 1.1x | 1.6x |
Rank | Largest Publicly Traded Equity Positions | Fund(s) | Q1 2015 Value (1,2) | ||
1 | Axalta Coating Systems | CP V, CEP III | $ | 4,704,017,329 | |
2 | CommScope, Inc. | CP V, CEP III | 2,317,932,324 | ||
3 | Freescale Semiconductor, Inc. | CP IV, CEP II, CAP II, CJP I | 1,279,214,593 | ||
4 | Booz Allen Hamilton, Inc. | CP V, CMP II | 1,184,887,414 | ||
5 | CoreSite Realty Corporation | CRP III, CRP IV, CRP V | 1,081,727,595 | ||
6 | Pattern Energy Group Holdings, L.P. | RENEW II | 900,002,843 | ||
7 | Healthscope Limited | CAP III, CP V | 773,679,596 | ||
8 | USA Compression | ENERGY IV | 425,719,467 | ||
9 | The Nielsen Company | CP IV, CEP II | 417,674,798 | ||
10 | Wesco Holdings, Inc. | CP IV, CMP I | 357,418,416 | ||
Top 10 Positions | 13,442,274,375 | ||||
Total Public Equity Portfolio (carry fund only) | 17,694,069,639 | ||||
% of public portfolio in top 10 positions | 76 | % | |||
Three Months Ended | ||||||||
Mar 31, 2014 | Mar 31, 2015 | |||||||
(Dollars in millions) | ||||||||
Income before provision for income taxes | $ | 472.4 | $ | 615.3 | ||||
Adjustments: | ||||||||
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments | 62.4 | 59.0 | ||||||
Acquisition related charges and amortization of intangibles | 80.1 | 40.6 | ||||||
Other non-operating expense | 30.2 | 1.1 | ||||||
Tax expense associated with performance fee compensation | (10.2 | ) | (5.2 | ) | ||||
Net income attributable to non-controlling interests in consolidated entities | (324.5 | ) | (439.1 | ) | ||||
Other adjustments | 1.3 | 1.0 | ||||||
Economic Net Income | $ | 311.7 | $ | 272.7 | ||||
Net performance fees | 296.4 | 281.8 | ||||||
Investment income (loss) | (7.9 | ) | (28.0 | ) | ||||
Equity-based compensation | 14.0 | 32.3 | ||||||
Fee Related Earnings | $ | 37.2 | $ | 51.2 | ||||
Realized performance fees, net of related compensation | 140.1 | 178.4 | ||||||
Realized investment income (loss) | 5.3 | (82.0 | ) | |||||
Distributable Earnings | $ | 182.6 | $ | 147.6 | ||||
Depreciation and amortization expense | 5.4 | 5.5 | ||||||
Interest expense | 12.2 | 14.6 | ||||||
Adjusted EBITDA | $ | 200.2 | $ | 167.7 |
Three Months Ended | ||||
Mar 31, 2015 | ||||
(Dollars in millions, except unit and per unit amounts) | ||||
Economic Net Income | $ | 272.7 | ||
Less: Provision for Income Taxes | 12.1 | |||
Economic Net Income, After Taxes | $ | 260.6 | ||
Economic Net Income, After Taxes per Adjusted Unit(1) | $ | 0.80 | ||
Distributable Earnings | $ | 147.6 | ||
Less: Estimated foreign, state, and local taxes | 10.0 | |||
Distributable Earnings, After Taxes | $ | 137.6 | ||
Distributable Earnings to The Carlyle Group L.P. | $ | 30.5 | ||
Less: Estimated current corporate income taxes and TRA payments | — | |||
Distributable Earnings to The Carlyle Group L.P. net of corporate income taxes | $ | 30.5 | ||
Distributable Earnings, net, per The Carlyle Group L.P. common unit outstanding(2) | $ | 0.43 | ||
(1) Adjusted Units were determined as follows: | ||||
The Carlyle Group L.P. common units outstanding | 68,906,237 | |||
Carlyle Holdings partnership units not held by The Carlyle Group L.P. | 250,972,907 | |||
Dilutive effect of unvested deferred restricted common units | 4,663,097 | |||
Total Adjusted Units | 324,542,241 |
(2) | As of March 31, 2015, there were 68,906,237 outstanding common units of The Carlyle Group L.P. In May 2015, an additional estimated 2,570,564 common units will be issued in connection with the vesting of deferred restricted common units. For purposes of this calculation, those common units have been added to the common units outstanding as of March 31, 2015, resulting in total common units of 71,476,801. |
As of March 31, 2015 | ||||||||||||||||
Consolidated Operating Entities | Consolidated Funds | Eliminations | Consolidated | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 1,024.8 | $ | — | $ | — | $ | 1,024.8 | ||||||||
Cash and cash equivalents held at Consolidated Funds | — | 1,436.7 | — | 1,436.7 | ||||||||||||
Restricted cash | 41.0 | — | — | 41.0 | ||||||||||||
Restricted cash and securities of Consolidated Funds | — | 18.8 | — | 18.8 | ||||||||||||
Accrued performance fees | 3,780.1 | — | (12.9 | ) | 3,767.2 | |||||||||||
Investments | 1,119.3 | — | (175.1 | ) | 944.2 | |||||||||||
Investments of Consolidated Funds | — | 25,949.0 | 0.1 | 25,949.1 | ||||||||||||
Due from affiliates and other receivables, net | 218.3 | — | (15.5 | ) | 202.8 | |||||||||||
Due from affiliates and other receivables of Consolidated Funds, net | — | 688.9 | — | 688.9 | ||||||||||||
Receivables and inventory of a consolidated real estate VIE | 185.0 | — | — | 185.0 | ||||||||||||
Fixed assets, net | 86.7 | — | — | 86.7 | ||||||||||||
Deposits and other | 57.7 | 3.2 | — | 60.9 | ||||||||||||
Other assets of a consolidated real estate VIE | 73.7 | — | — | 73.7 | ||||||||||||
Intangible assets, net | 399.3 | — | — | 399.3 | ||||||||||||
Deferred tax assets | 134.1 | — | — | 134.1 | ||||||||||||
Total assets | $ | 7,120.0 | $ | 28,096.6 | $ | (203.4 | ) | $ | 35,013.2 | |||||||
Liabilities and partners’ capital | ||||||||||||||||
Loans payable | $ | 38.4 | $ | — | $ | — | $ | 38.4 | ||||||||
3.875% Senior Notes due 2023 | 499.9 | — | — | 499.9 | ||||||||||||
5.625% Senior Notes due 2043 | 606.8 | — | — | 606.8 | ||||||||||||
Loans payable of Consolidated Funds | — | 16,721.9 | (167.3 | ) | 16,554.6 | |||||||||||
Loans payable of a consolidated real estate VIE at fair value (principal amount of $214.8) | 139.6 | — | — | 139.6 | ||||||||||||
Accounts payable, accrued expenses and other liabilities | 469.1 | — | (79.2 | ) | 389.9 | |||||||||||
Accrued compensation and benefits | 2,202.0 | — | — | 2,202.0 | ||||||||||||
Due to affiliates | 191.3 | 0.2 | — | 191.5 | ||||||||||||
Deferred revenue | 196.7 | — | (0.2 | ) | 196.5 | |||||||||||
Deferred tax liabilities | 105.0 | — | — | 105.0 | ||||||||||||
Other liabilities of Consolidated Funds | — | 1,751.3 | (42.6 | ) | 1,708.7 | |||||||||||
Other liabilities of a consolidated real estate VIE | 105.4 | — | — | 105.4 | ||||||||||||
Accrued giveback obligations | 184.5 | — | (7.9 | ) | 176.6 | |||||||||||
Total liabilities | 4,738.7 | 18,473.4 | (297.2 | ) | 22,914.9 | |||||||||||
Redeemable non-controlling interests in consolidated entities | 8.0 | 3,931.9 | — | 3,939.9 | ||||||||||||
Total partners’ capital | 2,373.3 | 5,691.3 | 93.8 | 8,158.4 | ||||||||||||
Total liabilities and partners’ capital | $ | 7,120.0 | $ | 28,096.6 | $ | (203.4 | ) | $ | 35,013.2 |
• | Economic net income or “ENI,” represents segment net income which includes certain tax expense associated with performance fee compensation and excludes the impact of all other income taxes, acquisition-related items including amortization of acquired intangibles and contingent consideration taking the form of earn-outs, charges associated with equity-based compensation issued in Carlyle’s initial public offering or in acquisitions or strategic investments, corporate actions and infrequently occurring or unusual events. Carlyle believes the inclusion or exclusion of these items provides investors with a meaningful indication of its core operating performance. For segment reporting purposes, revenues and expenses, and accordingly segment net income, are presented on a basis that deconsolidates certain Carlyle funds, related co-investment entities and CLOs (referred to collectively as the “Consolidated Funds”) that Carlyle consolidates in its consolidated financial statements pursuant to U.S. GAAP. Total Segment ENI equals the aggregate of ENI for all segments. ENI and its components are evaluated regularly by management in making resource deployment decisions and in assessing performance of Carlyle’s four segments and for compensation. Carlyle believes that reporting ENI is helpful to understanding its business and that investors should review the same supplemental financial measure that management uses to analyze its segment performance. |
• | Fee-Related Earnings is a component of ENI and is used to measure Carlyle’s operating profitability excluding equity-based compensation, performance fees, investment income from investments in Carlyle’s funds and performance fee related compensation. Accordingly, Fee-Related Earnings reflect the ability of the business to cover direct base compensation and operating expenses from fee revenues other than performance fees. Fee-Related Earnings are reported as part of Carlyle’s segment results. Carlyle uses Fee-Related Earnings from operations to measure its profitability from fund management fees. |
• | Distributable Earnings is a component of ENI representing total ENI less net performance fees and investment income plus realized net performance fees and realized investment income and excluding equity-based compensation. Distributable Earnings is intended to show the amount of net realized earnings without the effects of consolidation of the Consolidated Funds. Distributable Earnings is derived from Carlyle’s segment reported results and is an additional measure to assess performance and amounts potentially available for distribution from Carlyle Holdings to its unitholders. |
• | Adjusted EBITDA is a component of ENI and is used to measure Carlyle’s ability to cover recurring operating expenses from cash earnings. Adjusted EBITDA is computed as ENI excluding unrealized performance fees, unrealized performance fee compensation, unrealized investment income, depreciation and amortization expense, interest expense and equity-based compensation. |