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. |
THE CARLYLE GROUP L.P. | ||||||
By: | Carlyle Group Management L.L.C., | |||||
its general partner | ||||||
Date: February 7, 2018 | By: | /s/ Curtis L. Buser | ||||
Name: | Curtis L. Buser | |||||
Title: | Chief Financial Officer |
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 |
• | U.S. GAAP results included net income attributable to The Carlyle Group L.P. common unitholders of $53 million and $238 million, or $0.49 and $2.38 per common unit on a diluted basis, for Q4 2017 and 2017, respectively |
• | Economic Income of $366 million and $1.3 billion, and Economic Net Income of $1.01 and $3.47 per Adjusted Unit on a post-tax basis in Q4 2017 and in 2017, respectively, driven by carry fund appreciation of 5% in Q4 2017 and 20% in 2017 |
• | Distributable Earnings of $156 million on a pre-tax basis for Q4 2017 and $670 million in 2017; Distributable Earnings per common unit of $0.44 in Q4 2017 and $1.88 in 2017, on a post-tax basis |
• | Declared a quarterly distribution of $0.33 per common unit for Q4 2017; Aggregate distribution of $1.41 per common unit for 2017 |
• | Net accrued performance fees of $1.7 billion as of Q4 2017, up 60% over Q4 2016 |
• | $8.0 billion of realized proceeds in Q4 2017 and $26.0 billion realized in 2017 |
• | $7.2 billion of invested capital in Q4 2017 and a record $22.0 billion invested in 2017 |
• | $24.7 billion of new capital raised in Q4 2017 and a record $43.3 billion in 2017 |
Distributions |
Carlyle Consolidated GAAP Results |
Three Months Ended | Year Ended | ||||||||||||||||||||||
Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||||||
(Dollars in millions, except per unit data) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Fund management fees | $ | 259.0 | $ | 246.3 | $ | 238.8 | $ | 262.5 | $ | 279.3 | $ | 1,076.1 | $ | 1,026.9 | |||||||||
Total performance fees | 181.0 | 681.6 | 543.6 | 285.6 | 583.1 | 751.8 | 2,093.9 | ||||||||||||||||
Total investment income | 34.3 | 46.3 | 59.0 | 37.2 | 89.5 | 160.5 | 232.0 | ||||||||||||||||
Revenue from consolidated entities | 92.7 | 135.5 | 5.6 | 44.7 | 45.1 | 262.0 | 230.9 | ||||||||||||||||
All other revenues | 8.9 | 10.4 | 61.4 | 9.9 | 10.8 | 23.9 | 92.5 | ||||||||||||||||
Total revenues | 575.9 | 1,120.1 | 908.4 | 639.9 | 1,007.8 | 2,274.3 | 3,676.2 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Base compensation | 176.6 | 146.0 | 151.0 | 174.1 | 181.6 | 647.1 | 652.7 | ||||||||||||||||
Equity-based compensation | 68.8 | 72.8 | 88.0 | 81.0 | 78.5 | 334.6 | 320.3 | ||||||||||||||||
Total performance fee related compensation | 76.2 | 317.1 | 257.1 | 137.6 | 276.5 | 353.1 | 988.3 | ||||||||||||||||
General, administrative and other expenses | 158.5 | 93.8 | 95.8 | (18.7 | ) | 105.9 | 521.1 | 276.8 | |||||||||||||||
Expenses from consolidated entities and loss on deconsolidation of Urbplan | 90.9 | 164.8 | 96.9 | 101.7 | 36.7 | 336.1 | 400.1 | ||||||||||||||||
Interest and other nonoperating expense (income) | 3.0 | 15.0 | 16.6 | 16.9 | (54.4 | ) | 50.1 | (5.9 | ) | ||||||||||||||
Total expenses | 574.0 | 809.5 | 705.4 | 492.6 | 624.8 | 2,242.1 | 2,632.3 | ||||||||||||||||
Net investment gains of consolidated funds | 10.0 | 17.1 | 40.7 | 18.6 | 12.0 | 13.1 | 88.4 | ||||||||||||||||
Income before provision for income taxes | 11.9 | 327.7 | 243.7 | 165.9 | 395.0 | 45.3 | 1,132.3 | ||||||||||||||||
Provision (benefit) for income taxes | (2.7 | ) | 5.8 | 13.2 | (1.3 | ) | 107.2 | 30.0 | 124.9 | ||||||||||||||
Net income | 14.6 | 321.9 | 230.5 | 167.2 | 287.8 | 15.3 | 1,007.4 | ||||||||||||||||
Net income attributable to non-controlling interests in consolidated entities | 70.8 | 3.3 | 16.5 | 27.6 | 25.1 | 41.0 | 72.5 | ||||||||||||||||
Net income (loss) attributable to Carlyle Holdings | (56.2 | ) | 318.6 | 214.0 | 139.6 | 262.7 | (25.7 | ) | 934.9 | ||||||||||||||
Net income (loss) attributable to non-controlling interests in Carlyle Holdings | (47.3 | ) | 235.6 | 156.4 | 95.0 | 203.8 | (32.1 | ) | 690.8 | ||||||||||||||
Net income (loss) attributable to The Carlyle Group L.P. | (8.9 | ) | 83.0 | 57.6 | 44.6 | 58.9 | 6.4 | 244.1 | |||||||||||||||
Net income attributable to Series A Preferred Unitholders | — | — | — | — | 6.0 | — | 6.0 | ||||||||||||||||
Net income (loss) attributable to The Carlyle Group L.P. Common Unitholders | $ | (8.9 | ) | $ | 83.0 | $ | 57.6 | $ | 44.6 | $ | 52.9 | $ | 6.4 | $ | 238.1 | ||||||||
Net income (loss) attributable to The Carlyle Group L.P. per common unit | |||||||||||||||||||||||
Basic | $ | (0.11 | ) | $ | 0.97 | $ | 0.65 | $ | 0.47 | $ | 0.53 | $ | 0.08 | $ | 2.58 | ||||||||
Diluted | $ | (0.16 | ) | $ | 0.90 | $ | 0.59 | $ | 0.43 | $ | 0.49 | $ | (0.08 | ) | $ | 2.38 | |||||||
Non-GAAP Operating Results |
Carlyle Group Summary ($ in millions, except unit and per unit amounts) | ||||||||||||||||||||||||||||||
Annual | % Change | |||||||||||||||||||||||||||||
$ in millions, except per unit data and where noted | ||||||||||||||||||||||||||||||
Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | 2017 | QoQ | YoY | Annual | ||||||||||||||||||||||
Economic Income | $ | 5.6 | $ | 400.1 | $ | 300.1 | $ | 202.7 | $ | 366.4 | $1,269.3 | 81% | 6,443% | 315% | ||||||||||||||||
Fee Related Earnings | (132.4 | ) | 37.1 | 20.2 | 108.0 | 26.7 | 192.0 | (75)% | 120% | 3,468% | ||||||||||||||||||||
Net Performance Fees | 60.7 | 394.1 | 299.4 | 147.0 | 337.3 | 1,177.8 | 129% | 456% | 199% | |||||||||||||||||||||
Realized Net Performance Fees | 135.6 | 35.3 | 182.1 | 216.9 | 118.3 | 552.6 | (45)% | (13)% | (12)% | |||||||||||||||||||||
Distributable Earnings | 7.4 | 55.4 | 198.9 | 259.9 | 155.8 | 670.0 | (40)% | 2,005% | 3% | |||||||||||||||||||||
Economic Income, Tax and Per Unit Information | ||||||||||||||||||||||||||||||
Economic Income | $ | 5.6 | $ | 400.1 | $ | 300.1 | $ | 202.7 | $ | 366.4 | $ | 1,269.3 | ||||||||||||||||||
Less (Add): Provision (Benefit) for income taxes (1) | (0.8 | ) | 35.5 | 25.3 | 10.4 | 13.2 | 84.4 | |||||||||||||||||||||||
Less: Preferred unit distributions | — | — | — | — | 6.0 | 6.0 | ||||||||||||||||||||||||
Economic Net Income (after taxes) | $ | 6.4 | $ | 364.6 | $ | 274.8 | $ | 192.3 | $ | 347.2 | $ | 1,178.9 | ||||||||||||||||||
Adjusted Units (in millions) | 330.2 | 333.7 | 337.5 | 342.8 | 343.5 | (2) | 342.9 | (2) | ||||||||||||||||||||||
Economic Net Income (after taxes and preferred unit distributions) per Adjusted Unit | $ | 0.02 | $ | 1.09 | $ | 0.81 | $ | 0.56 | $ | 1.01 | $ | 3.47 | ||||||||||||||||||
Distributable Earnings, Tax and Per Unit Information | ||||||||||||||||||||||||||||||
Distributable Earnings | $ | 7.4 | $ | 55.4 | $ | 198.9 | $ | 259.9 | $ | 155.8 | $ | 670.0 | ||||||||||||||||||
Less: Estimated foreign, state, and local taxes (3) | 5.4 | 6.8 | 5.6 | 5.4 | 5.0 | 22.8 | ||||||||||||||||||||||||
Less: Preferred unit distributions | — | — | — | — | 6.0 | 6.0 | ||||||||||||||||||||||||
Distributable Earnings, After Taxes and Preferred Unit Distributions | $ | 2.0 | $ | 48.6 | $ | 193.3 | $ | 254.5 | $ | 144.8 | $ | 641.2 | ||||||||||||||||||
Allocating Distributable Earnings for only public unitholders of The Carlyle Group L.P. | ||||||||||||||||||||||||||||||
Distributable Earnings to The Carlyle Group L.P. | $ | 0.5 | $ | 13.0 | $ | 55.6 | $ | 74.7 | $ | 43.3 | $ | 186.6 | ||||||||||||||||||
(Add) / Less: Estimated current corporate income taxes (4) | 1.2 | 1.5 | 1.8 | 1.4 | (0.5 | ) | 4.2 | |||||||||||||||||||||||
Distributable Earnings Attributable to Common Unitholders | $ | (0.7 | ) | $ | 11.5 | $ | 53.8 | $ | 73.3 | $ | 43.8 | $ | 182.4 | |||||||||||||||||
Units in public float (in millions) | 85.7 | 88.1 | 96.2 | 98.3 | 100.5 | (5) | 100.5 | (5) | ||||||||||||||||||||||
Distributable Earnings, net, per The Carlyle Group L.P. common unit outstanding | $ | 0.00 | $ | 0.13 | $ | 0.56 | $ | 0.75 | $ | 0.44 | $ | 1.88 | ||||||||||||||||||
Distribution per common unit | $ | 0.16 | $ | 0.10 | $ | 0.42 | $ | 0.56 | $ | 0.33 | $ | 1.41 | ||||||||||||||||||
Carry Fund Appreciation and Net Accrued Performance Fees |
2015 | 2016 | 2017 | Net Accrued Performance Fees | |||||||||||||||||||||||
Fund Valuations ($ in millions) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q4 2017 | |||||||||||||
Overall Carry Fund Appreciation / (Depreciation) (1) | 8% | 3% | (1)% | 2% | 0% | 4% | 3% | 5% | 6% | 5% | 3% | 5% | ||||||||||||||
Corporate Private Equity (2) | 8% | 5% | (3)% | 3% | 1% | 4% | 3% | 4% | 9% | 8% | 4% | 8% | $1,140 | |||||||||||||
Buyout | 9% | 4% | (3)% | 3% | 1% | 4% | 3% | 4% | 9% | 9% | 3% | 8% | $1,098 | |||||||||||||
Growth Capital | 3% | 11% | 0% | 0% | (2)% | 3% | 0% | 3% | 7% | 4% | 6% | 6% | $42 | |||||||||||||
Real Assets (2) | 2% | 0% | (5)% | 0% | 1% | 7% | 4% | 4% | 5% | 6% | 2% | 4% | $476 | |||||||||||||
Real Estate | 11% | 4% | 6% | 6% | 8% | 8% | 0% | 3% | 5% | 6% | 3% | 3% | $312 | |||||||||||||
Natural Resources (3) | 1% | 0% | (4)% | 0% | (2)% | 11% | 12% | 0% | 7% | 6% | 5% | 8% | $180 | |||||||||||||
Legacy Energy | (3)% | (3)% | (17)% | (7)% | (3)% | 3% | 1% | 9% | 3% | 4% | (3)% | 2% | $(16) | |||||||||||||
Global Credit Carry Funds (2) | 3% | 2% | (9)% | (4)% | (12)% | (2)% | 0% | 2% | 7% | 0% | 0% | 1% | $27 | |||||||||||||
Investment Solutions Carry Funds (2) | 13% | 4% | 4% | 2% | 0% | 3% | 2% | 7% | 3% | 1% | 3% | 3% | $74 | |||||||||||||
Net Accrued Performance Fees | $1,717 |
Carlyle All Segment Results |
• | Economic Income was $366 million in Q4 2017, driven by 5% carry fund appreciation in the quarter. Economic Income for 2017 of $1.3 billion increased 315% compared to 2016, supported by 20% annual appreciation in our carry funds. |
• | Distributable Earnings of $156 million in Q4 2017 included $27 million in Fee Related Earnings and $118 million in net realized performance fees. DE per common unit was $0.44 for Q4 2017 and $1.88 for 2017. |
• | Fee Related Earnings were $27 million in Q4 2017 and $192 million in 2017. Excluding net insurance recoveries in Global Credit, 2017 FRE would have been $124 million. Q4 2017 management fees of $290 million increased 9% versus Q4 2016. Q4 2017 fundraising expenses were $34 million compared to $14 million in Q4 2016, and are included in indirect compensation expense for our internal costs and in general and administrative expenses for our external costs. |
• | Total Assets Under Management ("AUM") of $195 billion increased 24% compared to Q4 2016 through a combination of $43 billion in fundraising and fund appreciation, partially offset by $26 billion in realized proceeds to fund investors. |
• | Fee Earning AUM of $125 billion increased 8% from Q4 2016. As of year-end 2017, there was $22 billion in pending Fee Earning AUM that will turn on fees either through the activation of the underlying fund or additional capital deployment. |
Business Drivers | |||||||||
$ in billions, unless noted | Q4 2016 | Q4 2017 | Prior LTM | LTM | |||||
Fundraising | $2.7 | $24.7 | $8.2 | $43.3 | |||||
Invested Capital1 | 6.1 | 7.2 | 17.9 | 22.0 | |||||
Realized Proceeds1 | 8.5 | 8.0 | 29.4 | 26.0 | |||||
Carry Fund Appreciation1 | 5% | 5% | 12% | 20% | |||||
Financial Metrics | |||||||||
$ in millions | Q4 2016 | Q4 2017 | Prior LTM | LTM | |||||
Fee Related Earnings (FRE) | $(132) | $27 | $33 | $192 | |||||
+ | Net Realized Performance Fees | 136 | 118 | 625 | 553 | ||||
+ | Realized Investment Income/(Loss) | 17 | 22 | 45 | (26) | ||||
+ | Net Interest | (13) | (12) | (51) | (49) | ||||
= | Distributable Earnings (DE) | $7 | $156 | $652 | $670 | ||||
Fee Related Earnings (FRE) | $(132) | $27 | $33 | $192 | |||||
+ | Net Performance Fees | 61 | 337 | 394 | 1,178 | ||||
+ | Investment Income/(Loss) | 15 | 41 | 50 | 47 | ||||
– | Equity-based Compensation | 24 | 27 | 120 | 124 | ||||
– | Net Interest | 13 | 12 | 51 | 49 | ||||
– | Other2 | (100) | — | — | (25) | ||||
= | Economic Income | $6 | $366 | $306 | $1,269 | ||||
Corporate Private Equity (CPE) |
• | Corporate Private Equity carry funds appreciated 8% in the quarter, driving net performance fees of $260 million. For the year, CPE carry funds appreciated 32% and generated $878 million in net performance fees. |
• | Economic Income was $249 million in Q4 2017 and $896 million for 2017, 300% higher than 2016. |
• | Fee Related Earnings were ($17) million in Q4 2017, with the loss primarily attributable to fundraising expense of $31 million due to record quarterly fundraising of $19.1 billion, with associated management fees not yet activated. As of year-end, CPE had $18 billion in pending Fee-Earning AUM that had not yet activated fees. |
• | Distributable Earnings of $73 million in Q4 2017 reflect $85 million in net realized performance fees, $10 million in realized investment income and the loss in Fee Related Earnings. Realizations of $3.4 billion in Q4 2017 were slightly lower than Q4 2016. Net realized performance fees of $85 million declined versus Q4 2016 as a lower proportion of exits produced realized performance fees compared to prior periods. For the year, CPE Distributable Earnings of $488 million were lower than 2016. |
• | Invested $3.6 billion in Q4 2017 into 31 different investments. For 2017 overall, CPE invested a record $11.1 billion, 41% higher than 2016. Notable investments during Q4 2017 include SBI Card (CAP IV), TCW Group (CGP), BenefitMall (CSFSP II), MedRisk HoldCo (CP VI), Net Health Systems (CEOF II), and ADB SafeGate and Praesidiad (CEP IV). |
• | Assets Under Management reached a record $72.6 billion and increased 43% compared to Q4 2016. During the fourth quarter, we held first closes on our latest vintage U.S. Buyout funds and Asia Buyout funds totaling $18.8 billion. |
Business Drivers | ||||||||
$ in billions, unless noted | Q4 2016 | Q4 2017 | Prior LTM | LTM | ||||
Fundraising | $0.0 | $19.1 | $0.8 | $20.5 | ||||
Invested Capital1 | 2.6 | 3.6 | 7.9 | 11.1 | ||||
Realized Proceeds1 | 3.6 | 3.4 | 14.8 | 11.2 | ||||
Carry Fund Appreciation1 | 4% | 8% | 11% | 32% | ||||
Financial Metrics | ||||||||
$ in millions | Q4 2016 | Q4 2017 | Prior LTM | LTM | ||||
Fund Management Fees | $122 | $119 | $499 | $471 | ||||
Net Realized Performance Fees | 159 | 85 | 588 | 459 | ||||
Net Performance Fees | — | 260 | 154 | 878 | ||||
Realized Investment Income | 14 | 10 | 60 | 25 | ||||
Investment Income | 15 | 24 | 49 | 62 | ||||
Fee Related Earnings (FRE) | $25 | $(17) | $116 | $26 | ||||
Distributable Earnings (DE) | $191 | $73 | $739 | $488 | ||||
Economic Income | $71 | $249 | $224 | $896 | ||||
Real Assets |
• | Real Assets carry funds appreciated 4% in the quarter, driving net performance fees of $63 million. For the year, Real Assets carry funds appreciated 19%. Natural Resources appreciated 30% and Real Estate funds appreciated 17% leading to $243 million in net performance fees. |
• | Economic Income was $98 million in Q4 2017 and $215 million in 2017, driven by strong appreciation and growth in Fee Related Earnings. Excluding a charge in Q3 2017 related to our disposal of Urbplan Desenvolvimento Urbano S.A., Economic Income would have been $280 million for 2017. |
• | Fee Related Earnings were $34 million in Q4 2017, more than double Q4 2016 as management fees increased 32% due to new capital raised, primarily in the latest vintage NGP carry fund and our latest vintage U.S. Real Estate fund. |
• | Distributable Earnings were $50 million in Q4 2017 and $25 million in 2017. Excluding the Urbplan charge, Distributable Earnings would have been $115 million for 2017. Net realized performance fees were $10 million in Q4 2017. Realizations of $1.4 billion and $4.6 billion in Q4 2017 and 2017, respectively, were lower than the prior year. |
• | Invested $1.6 billion in the quarter $4.4 billion in 2017, slightly lower than 2016. During Q4 2017, Real Estate invested $0.5 billion and Natural Resources invested $1.1 billion. |
• | Assets Under Management of $42.9 billion increased 25% compared to Q4 2016, driven by a combination of appreciation and capital raised. Fundraising of $3.2 billion in Q4 2017 includes closes in the latest vintage NGP carry fund and our U.S. Real Estate carry funds. Fundraising totaled $10.2 billion for 2017. |
Business Drivers | ||||||||
$ in billions, unless noted | Q4 2016 | Q4 2017 | Prior LTM | LTM | ||||
Fundraising | $0.3 | $3.2 | $1.2 | $10.2 | ||||
Invested Capital1 | 2.2 | 1.6 | 5.1 | 4.4 | ||||
Realized Proceeds1 | 2.0 | 1.4 | 5.6 | 4.6 | ||||
Carry Fund Appreciation1 | 4% | 4% | 18% | 19% | ||||
Financial Metrics | ||||||||
$ in millions | Q4 2016 | Q4 2017 | Prior LTM | LTM | ||||
Fund Management Fees | $59 | $78 | $251 | $264 | ||||
Net Realized Performance Fees | (30) | 10 | 16 | 50 | ||||
Net Performance Fees | 52 | 63 | 208 | 243 | ||||
Realized Investment Income/(Loss) | 1 | 9 | (21) | (63) | ||||
Investment Income/(Loss) | (4) | 12 | (19) | (37) | ||||
Fee Related Earnings (FRE) | $13 | $34 | $69 | $52 | ||||
Distributable Earnings (DE) | $(20) | $50 | $49 | $25 | ||||
Economic Income | $73 | $98 | $217 | $215 | ||||
Global Credit |
• | Economic Income of $2 million in Q4 2017 was higher relative to a loss in Q4 2016. Economic Income was $107 million in 2017 which included $68 million in insurance recoveries in excess of related commodities charges. Global Credit carry funds appreciated 1% in the quarter and 11% for 2017. |
• | Fee Related Earnings were $1 million in Q4 2017 and $82 million for 2017, which included the positive impact of the net insurance recoveries. Q4 2017 fund management fees of $51 million increased 20% year over year when excluding the impact of catch-up management fees and hedge fund related revenue in Q4 2016. |
• | Distributable Earnings of $23 million in Q4 2017 include net realized performance fees of $21 million from our carry funds. Realized Proceeds were $0.3 billion in Q4 2017 and $0.6 billion for 2017. |
• | Invested $0.8 billion in Global Credit carry funds in the quarter and $2.1 billion in 2017, both higher than prior periods. Direct lending originated gross new loans of approximately $500 million in the quarter and $1.9 billion in 2017. Our structured credit team raised CLO par value of $1.2 billion in the quarter and $4.2 billion in 2017. |
• | Assets Under Management of $33.3 billion increased 13% compared to Q4 2016, driven by fundraising, foreign exchange and carry fund appreciation. Q4 2017 fundraising of $1.7 billion includes four CLOs, follow-on closes in our new private BDCs, Structured Credit fund, and managed accounts. Fundraising totaled $6.6 billion for 2017. Fee-Earning Assets Under Management of $27.3 billion increased 13% compared to Q4 2016. |
Business Drivers | ||||||||
$ in billions, unless noted | Q4 2016 | Q4 2017 | Prior LTM | LTM | ||||
Fundraising | $1.3 | $1.7 | $3.5 | $6.6 | ||||
Invested Capital1 | 0.4 | 0.8 | 0.7 | 2.1 | ||||
Realized Proceeds1 | 0.1 | 0.3 | 0.4 | 0.6 | ||||
Carry Fund Appreciation1 | 2% | 1% | (11)% | 11% | ||||
Financial Metrics | ||||||||
$ in millions | Q4 2016 | Q4 2017 | Prior LTM | LTM | ||||
Fund Management Fees | $48 | $51 | $196 | $192 | ||||
Net Realized Performance Fees | 6 | 21 | 19 | 40 | ||||
Net Performance Fees | 4 | 3 | 20 | 31 | ||||
Realized Investment Income | 2 | 3 | 5 | 12 | ||||
Investment Income | 3 | 4 | 20 | 17 | ||||
Fee Related Earnings (FRE) | $(175) | $1 | $(175) | $82 | ||||
Distributable Earnings (DE) | $(169) | $23 | $(157) | $127 | ||||
Economic Income | $(155) | $2 | $(159) | $107 | ||||
Investment Solutions |
• | Investment Solutions carry funds appreciated 3% in the quarter and 10% for the year. Excluding the impact of foreign exchange translation, Investment Solutions carry funds appreciated 5% in Q4 2017 and 19% for 2017. |
• | Economic Income was $18 million in Q4 2017 and $51 million for 2017, up 111% from 2016. Fund appreciation drove record quarterly and annual net performance fees of $11 million and $25 million, respectively, in Q4 2017 and 2017. |
• | Fee Related Earnings were $9 million in Q4 2017, up 107% compared to Q4 2016, as higher Fee Earning AUM drove a 14% increase in management fees and expenses declined. For 2017, FRE of $32 million increased 38% compared to 2016. |
• | Distributable Earnings were $10 million in Q4 2017 and $30 million in 2017, up 49% compared to 2016. |
• | Invested $1.2 billion in Investment Solutions carry funds and vehicles during Q4 2017 and $4.4 billion in 2017, slightly higher than 2016. |
• | Assets Under Management of $46.3 billion increased 7% compared to Q4 2016, largely attributable to market appreciation and the impact of foreign exchange. Fundraising of $0.7 billion in Q4 2017 included closings in AlpInvest Co-Investment, Mezzanine and Fund vehicles, and fundraising was a record $5.9 billion for 2017. Fee-Earning Assets Under Management of $30.2 billion were up 11% compared to Q4 2016. |
Business Drivers | ||||||||
$ in billions, unless noted | Q4 2016 | Q4 2017 | Prior LTM | LTM | ||||
Fundraising1 | $1.1 | $0.7 | $2.8 | $5.9 | ||||
Invested Capital2 | 0.9 | 1.2 | 4.3 | 4.4 | ||||
Realized Proceeds2 | 2.8 | 2.9 | 8.6 | 9.6 | ||||
Carry Fund Appreciation2 | 7% | 3% | 12% | 10% | ||||
Financial Metrics | ||||||||
$ in millions | Q4 2016 | Q4 2017 | Prior LTM | LTM | ||||
Fund Management Fees | $37 | $42 | $140 | $155 | ||||
Net Realized Performance Fees | 1 | 2 | 2 | 3 | ||||
Net Performance Fees | 5 | 11 | 13 | 25 | ||||
Realized Investment Income/(Loss) | — | — | — | — | ||||
Investment Income | 1 | 1 | — | 4 | ||||
Fee Related Earnings (FRE) | $5 | $9 | $23 | $32 | ||||
Distributable Earnings (DE) | $4 | $10 | $20 | $30 | ||||
Economic Income | $17 | $18 | $24 | $51 | ||||
Fund Activity Metrics ($ billions) |
By Quarter | By Sub-segment |
Fundraising |
Invested Capital |
Realized Proceeds |
Assets Under Management and Remaining Fair Value of Capital |
vs. Last Quarter | vs. One Year Ago | ||||||||
$ in billions, unless noted | Q4 2017 | Q3 2017 | % | Q4 2016 | % | ||||
Corporate Private Equity | 72.6 | 55.7 | 30% | 50.9 | 43% | ||||
Real Assets | 42.9 | 39.8 | 8% | 34.3 | 25% | ||||
Global Credit | 33.3 | 31.9 | 4% | 29.4 | 13% | ||||
Investment Solutions | 46.3 | 47.0 | (2)% | 43.1 | 7% | ||||
Total | 195.1 | 174.4 | 12% | 157.6 | 24% | ||||
Fee Earning Assets Under Management |
vs. Last Quarter | vs. One Year Ago | ||||||||
$ in billions, unless noted | Q4 2017 | Q3 2017 | % | Q4 2016 | % | ||||
Corporate Private Equity | 35.6 | 35.6 | 0% | 36.3 | (2)% | ||||
Real Assets | 31.6 | 29.8 | 6% | 27.5 | 15% | ||||
Global Credit | 27.3 | 26.0 | 5% | 24.1 | 13% | ||||
Investment Solutions | 30.2 | 30.3 | 0% | 27.1 | 11% | ||||
Total | 124.6 | 121.8 | 2% | 115.0 | 8% | ||||
Balance Sheet Highlights |
• | Cash and Cash Equivalents and Corporate Treasury Investments(1) of $1.4 billion. |
• | On-balance sheet investments attributable to unitholders of $933 million(2), excluding the equity investment by Carlyle in NGP Energy Capital Management. |
• | Net accrued performance fees attributable to unitholders of $1.7 billion. These performance fees are comprised of $3.7 billion of gross accrued performance fees, less $0.1 billion in accrued giveback obligation and $1.9 billion in accrued performance fee compensation and non-controlling interest. |
• | Debt obligations, consisting of loans, senior notes, and promissory notes totaling $1.6 billion. |
• | On September 13, 2017, Carlyle issued 16 million of its 5.875% Series A Preferred Units at $25.00 per unit for total gross proceeds of $400 million. |
Three Months Ended | Year Ended | |||||||||||||||
Dec 31, 2016 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||
(Dollars in millions, except unit and per unit data) | ||||||||||||||||
Revenues | ||||||||||||||||
Fund management fees | $ | 259.0 | $ | 279.3 | $ | 1,076.1 | $ | 1,026.9 | ||||||||
Performance fees | ||||||||||||||||
Realized | 224.4 | 244.6 | 1,129.5 | 1,097.3 | ||||||||||||
Unrealized | (43.4 | ) | 338.5 | (377.7 | ) | 996.6 | ||||||||||
Total performance fees | 181.0 | 583.1 | 751.8 | 2,093.9 | ||||||||||||
Investment income | ||||||||||||||||
Realized | 20.7 | 28.4 | 112.9 | 70.4 | ||||||||||||
Unrealized | 13.6 | 61.1 | 47.6 | 161.6 | ||||||||||||
Total investment income | 34.3 | 89.5 | 160.5 | 232.0 | ||||||||||||
Interest and other income | 8.9 | 10.8 | 23.9 | 36.7 | ||||||||||||
Interest and other income of Consolidated Funds | 59.1 | 45.1 | 166.9 | 177.7 | ||||||||||||
Revenue of a real estate VIE | 33.6 | — | 95.1 | 109.0 | ||||||||||||
Total revenues | 575.9 | 1,007.8 | 2,274.3 | 3,676.2 | ||||||||||||
Expenses | ||||||||||||||||
Compensation and benefits | ||||||||||||||||
Base compensation | 176.6 | 181.6 | 647.1 | 652.7 | ||||||||||||
Equity-based compensation | 68.8 | 78.5 | 334.6 | 320.3 | ||||||||||||
Performance fee related | ||||||||||||||||
Realized | 157.5 | 118.8 | 580.5 | 520.7 | ||||||||||||
Unrealized | (81.3 | ) | 157.7 | (227.4 | ) | 467.6 | ||||||||||
Total compensation and benefits | 321.6 | 536.6 | 1,334.8 | 1,961.3 | ||||||||||||
General, administrative and other expenses | 158.5 | 105.9 | 521.1 | 276.8 | ||||||||||||
Interest | 15.0 | 17.1 | 61.3 | 65.5 | ||||||||||||
Interest and other expenses of Consolidated Funds | 41.2 | 36.7 | 128.5 | 197.6 | ||||||||||||
Interest and other expenses of a real estate VIE | 49.7 | — | 207.6 | 202.5 | ||||||||||||
Other non-operating (income) expense | (12.0 | ) | (71.5 | ) | (11.2 | ) | (71.4 | ) | ||||||||
Total expenses | 574.0 | 624.8 | 2,242.1 | 2,632.3 | ||||||||||||
Other income | ||||||||||||||||
Net investment gains of Consolidated Funds | 10.0 | 12.0 | 13.1 | 88.4 | ||||||||||||
Income before provision for income taxes | 11.9 | 395.0 | 45.3 | 1,132.3 | ||||||||||||
Provision (benefit) for income taxes | (2.7 | ) | 107.2 | 30.0 | 124.9 | |||||||||||
Net income | 14.6 | 287.8 | 15.3 | 1,007.4 | ||||||||||||
Net income attributable to non-controlling interests in consolidated entities | 70.8 | 25.1 | 41.0 | 72.5 | ||||||||||||
Net income (loss) attributable to Carlyle Holdings | (56.2 | ) | 262.7 | (25.7 | ) | 934.9 | ||||||||||
Net income (loss) attributable to non-controlling interests in Carlyle Holdings | (47.3 | ) | 203.8 | (32.1 | ) | 690.8 | ||||||||||
Net income (loss) attributable to The Carlyle Group L.P. | (8.9 | ) | 58.9 | 6.4 | 244.1 | |||||||||||
Net income attributable to Series A Preferred Unitholders | — | 6.0 | — | 6.0 | ||||||||||||
Net income (loss) attributable to The Carlyle Group L.P. Common Unitholders | $ | (8.9 | ) | $ | 52.9 | $ | 6.4 | $ | 238.1 | |||||||
Net income (loss) attributable to The Carlyle Group L.P. per common unit | ||||||||||||||||
Basic | $ | (0.11 | ) | $ | 0.53 | $ | 0.08 | $ | 2.58 | |||||||
Diluted (1) | $ | (0.16 | ) | $ | 0.49 | $ | (0.08 | ) | $ | 2.38 | ||||||
Weighted-average common units | ||||||||||||||||
Basic | 84,654,647 | 99,026,789 | 82,714,178 | 92,136,959 | ||||||||||||
Diluted | 309,337,312 | 107,639,911 | 308,522,990 | 100,082,548 |
Three Months Ended | Year Ended | |||||||||||||||||||
Total Segment Revenues | Dec 31, 2016 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Fund level fee revenues | ||||||||||||||||||||
Fund management fees | $ | 265.8 | $ | 278.4 | $ | 289.8 | $ | 1,085.8 | $ | 1,081.0 | ||||||||||
Portfolio advisory fees, net | 3.8 | 4.1 | 3.7 | 16.6 | 16.7 | |||||||||||||||
Transaction fees, net | 6.9 | 6.1 | 11.9 | 31.2 | 26.9 | |||||||||||||||
Total fee revenues | 276.5 | 288.6 | 305.4 | 1,133.6 | 1,124.6 | |||||||||||||||
Performance fees | ||||||||||||||||||||
Realized | 296.6 | 411.0 | 238.6 | 1,215.8 | 1,085.3 | |||||||||||||||
Unrealized | (158.2 | ) | (125.6 | ) | 376.9 | (464.1 | ) | 1,089.6 | ||||||||||||
Total performance fees | 138.4 | 285.4 | 615.5 | 751.7 | 2,174.9 | |||||||||||||||
Investment income (loss) | ||||||||||||||||||||
Realized | 17.0 | (53.4 | ) | 22.4 | 44.9 | (25.8 | ) | |||||||||||||
Unrealized | (2.5 | ) | 18.1 | 18.3 | 5.4 | 73.0 | ||||||||||||||
Total investment income (loss) | 14.5 | (35.3 | ) | 40.7 | 50.3 | 47.2 | ||||||||||||||
Interest income | 2.2 | 5.4 | 5.5 | 10.2 | 16.7 | |||||||||||||||
Other income | 3.9 | 3.4 | 4.0 | 12.8 | 15.4 | |||||||||||||||
Total Segment Revenues | $ | 435.5 | $ | 547.5 | $ | 971.1 | $ | 1,958.6 | $ | 3,378.8 | ||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
Total Segment Expenses | Dec 31, 2016 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||
Direct base compensation | $ | 99.7 | $ | 132.5 | $ | 120.3 | $ | 437.1 | $ | 464.5 | ||||||||||
Indirect base compensation | 49.1 | 44.8 | 60.1 | 164.2 | 193.5 | |||||||||||||||
Equity-based compensation | 24.4 | 30.4 | 26.7 | 119.6 | 123.9 | |||||||||||||||
Performance fee related | ||||||||||||||||||||
Realized | 161.0 | 194.1 | 120.3 | 590.5 | 532.7 | |||||||||||||||
Unrealized | (83.3 | ) | (55.7 | ) | 157.9 | (232.5 | ) | 464.4 | ||||||||||||
Total compensation and benefits | 250.9 | 346.1 | 485.3 | 1,078.9 | 1,779.0 | |||||||||||||||
General, administrative, and other indirect expenses | 156.8 | (26.5 | ) | 94.4 | 483.5 | 233.9 | ||||||||||||||
Depreciation and amortization expense | 7.2 | 8.2 | 7.9 | 29.0 | 31.1 | |||||||||||||||
Interest expense | 15.0 | 17.0 | 17.1 | 61.3 | 65.5 | |||||||||||||||
Total Segment Expenses | $ | 429.9 | $ | 344.8 | $ | 604.7 | $ | 1,652.7 | $ | 2,109.5 | ||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
Total Segments | Dec 31, 2016 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Total Segment Revenues | $ | 435.5 | $ | 547.5 | $ | 971.1 | $ | 1,958.6 | $ | 3,378.8 | ||||||||||
Total Segment Expenses | 429.9 | 344.8 | 604.7 | 1,652.7 | 2,109.5 | |||||||||||||||
Economic Income | $ | 5.6 | $ | 202.7 | $ | 366.4 | $ | 305.9 | $ | 1,269.3 | ||||||||||
(-) Net Performance Fees | 60.7 | 147.0 | 337.3 | 393.7 | 1,177.8 | |||||||||||||||
(-) Investment Income (Loss) | 14.5 | (35.3 | ) | 40.7 | 50.3 | 47.2 | ||||||||||||||
(+) Equity-based compensation | 24.4 | 30.4 | 26.7 | 119.6 | 123.9 | |||||||||||||||
(+) Net Interest | 12.8 | 11.6 | 11.6 | 51.1 | 48.8 | |||||||||||||||
(+) Reserve for Litigation and Contingencies | (100.0 | ) | (25.0 | ) | — | — | (25.0 | ) | ||||||||||||
(=) Fee Related Earnings | $ | (132.4 | ) | $ | 108.0 | $ | 26.7 | $ | 32.6 | $ | 192.0 | |||||||||
(+) Realized Net Performance Fees | 135.6 | 216.9 | 118.3 | 625.3 | 552.6 | |||||||||||||||
(+) Realized Investment Income (Loss) | 17.0 | (53.4 | ) | 22.4 | 44.9 | (25.8 | ) | |||||||||||||
(+) Net Interest | (12.8 | ) | (11.6 | ) | (11.6 | ) | (51.1 | ) | (48.8 | ) | ||||||||||
(=) Distributable Earnings | $ | 7.4 | $ | 259.9 | $ | 155.8 | $ | 651.7 | $ | 670.0 |
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
Total Segment Revenues | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||||
Fund management fees | $ | 265.8 | $ | 255.6 | $ | 257.2 | $ | 278.4 | $ | 289.8 | $ | 1,085.8 | $ | 1,081.0 | ||||||||||||||
Portfolio advisory fees, net | 3.8 | 4.0 | 4.9 | 4.1 | 3.7 | 16.6 | 16.7 | |||||||||||||||||||||
Transaction fees, net | 6.9 | 7.7 | 1.2 | 6.1 | 11.9 | 31.2 | 26.9 | |||||||||||||||||||||
Total fee revenues | 276.5 | 267.3 | 263.3 | 288.6 | 305.4 | 1,133.6 | 1,124.6 | |||||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||||
Realized | 296.6 | 83.0 | 352.7 | 411.0 | 238.6 | 1,215.8 | 1,085.3 | |||||||||||||||||||||
Unrealized | (158.2 | ) | 631.7 | 206.6 | (125.6 | ) | 376.9 | (464.1 | ) | 1,089.6 | ||||||||||||||||||
Total performance fees | 138.4 | 714.7 | 559.3 | 285.4 | 615.5 | 751.7 | 2,174.9 | |||||||||||||||||||||
Investment income (loss) | ||||||||||||||||||||||||||||
Realized | 17.0 | (5.4 | ) | 10.6 | (53.4 | ) | 22.4 | 44.9 | (25.8 | ) | ||||||||||||||||||
Unrealized | (2.5 | ) | 16.0 | 20.6 | 18.1 | 18.3 | 5.4 | 73.0 | ||||||||||||||||||||
Total investment income (loss) | 14.5 | 10.6 | 31.2 | (35.3 | ) | 40.7 | 50.3 | 47.2 | ||||||||||||||||||||
Interest income | 2.2 | 3.4 | 2.4 | 5.4 | 5.5 | 10.2 | 16.7 | |||||||||||||||||||||
Other income | 3.9 | 5.2 | 2.8 | 3.4 | 4.0 | 12.8 | 15.4 | |||||||||||||||||||||
Total Segment Revenues | $ | 435.5 | $ | 1,001.2 | $ | 859.0 | $ | 547.5 | $ | 971.1 | $ | 1,958.6 | $ | 3,378.8 | ||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
Total Segment Expenses | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||||
Direct base compensation | $ | 99.7 | $ | 108.3 | $ | 103.4 | $ | 132.5 | $ | 120.3 | $ | 437.1 | $ | 464.5 | ||||||||||||||
Indirect base compensation | 49.1 | 39.0 | 49.6 | 44.8 | 60.1 | 164.2 | 193.5 | |||||||||||||||||||||
Equity-based compensation | 24.4 | 30.1 | 36.7 | 30.4 | 26.7 | 119.6 | 123.9 | |||||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||||
Realized | 161.0 | 47.7 | 170.6 | 194.1 | 120.3 | 590.5 | 532.7 | |||||||||||||||||||||
Unrealized | (83.3 | ) | 272.9 | 89.3 | (55.7 | ) | 157.9 | (232.5 | ) | 464.4 | ||||||||||||||||||
Total compensation and benefits | 250.9 | 498.0 | 449.6 | 346.1 | 485.3 | 1,078.9 | 1,779.0 | |||||||||||||||||||||
General, administrative, and other indirect expenses | 156.8 | 80.6 | 85.4 | (26.5 | ) | 94.4 | 483.5 | 233.9 | ||||||||||||||||||||
Depreciation and amortization expense | 7.2 | 7.5 | 7.5 | 8.2 | 7.9 | 29.0 | 31.1 | |||||||||||||||||||||
Interest expense | 15.0 | 15.0 | 16.4 | 17.0 | 17.1 | 61.3 | 65.5 | |||||||||||||||||||||
Total Segment Expenses | $ | 429.9 | $ | 601.1 | $ | 558.9 | $ | 344.8 | $ | 604.7 | $ | 1,652.7 | $ | 2,109.5 | ||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
Total Segments | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Total Segment Revenues | $ | 435.5 | $ | 1,001.2 | $ | 859.0 | $ | 547.5 | $ | 971.1 | $ | 1,958.6 | $ | 3,378.8 | ||||||||||||||
Total Segment Expenses | 429.9 | 601.1 | 558.9 | 344.8 | 604.7 | 1,652.7 | 2,109.5 | |||||||||||||||||||||
Economic Income | $ | 5.6 | $ | 400.1 | $ | 300.1 | $ | 202.7 | $ | 366.4 | $ | 305.9 | $ | 1,269.3 | ||||||||||||||
(-) Net Performance Fees | 60.7 | 394.1 | 299.4 | 147.0 | 337.3 | 393.7 | 1,177.8 | |||||||||||||||||||||
(-) Investment Income (Loss) | 14.5 | 10.6 | 31.2 | (35.3 | ) | 40.7 | 50.3 | 47.2 | ||||||||||||||||||||
(+) Equity-based compensation | 24.4 | 30.1 | 36.7 | 30.4 | 26.7 | 119.6 | 123.9 | |||||||||||||||||||||
(+) Net Interest | 12.8 | 11.6 | 14.0 | 11.6 | 11.6 | 51.1 | 48.8 | |||||||||||||||||||||
(+) Reserve for Litigation and Contingencies | (100.0 | ) | — | — | (25.0 | ) | — | — | (25.0 | ) | ||||||||||||||||||
(=) Fee Related Earnings | $ | (132.4 | ) | $ | 37.1 | $ | 20.2 | $ | 108.0 | $ | 26.7 | $ | 32.6 | $ | 192.0 | |||||||||||||
(+) Realized Net Performance Fees | 135.6 | 35.3 | 182.1 | 216.9 | 118.3 | 625.3 | 552.6 | |||||||||||||||||||||
(+) Realized Investment Income (Loss) | 17.0 | (5.4 | ) | 10.6 | (53.4 | ) | 22.4 | 44.9 | (25.8 | ) | ||||||||||||||||||
(+) Net Interest | (12.8 | ) | (11.6 | ) | (14.0 | ) | (11.6 | ) | (11.6 | ) | (51.1 | ) | (48.8 | ) | ||||||||||||||
(=) Distributable Earnings | $ | 7.4 | $ | 55.4 | $ | 198.9 | $ | 259.9 | $ | 155.8 | $ | 651.7 | $ | 670.0 |
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
Corporate Private Equity | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||||
Fund management fees | $ | 122.0 | $ | 115.7 | $ | 117.7 | $ | 118.3 | $ | 119.3 | $ | 498.9 | $ | 471.0 | ||||||||||||||
Portfolio advisory fees, net | 3.3 | 3.8 | 4.5 | 3.6 | 3.3 | 14.5 | 15.2 | |||||||||||||||||||||
Transaction fees, net | 6.9 | 7.7 | 1.2 | 5.3 | 8.2 | 31.2 | 22.4 | |||||||||||||||||||||
Total fee revenues | 132.2 | 127.2 | 123.4 | 127.2 | 130.8 | 544.6 | 508.6 | |||||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||||
Realized | 285.3 | 51.3 | 272.1 | 345.4 | 162.7 | 1,060.5 | 831.5 | |||||||||||||||||||||
Unrealized | (281.3 | ) | 515.3 | 142.9 | (193.2 | ) | 316.6 | (777.5 | ) | 781.6 | ||||||||||||||||||
Total performance fees | 4.0 | 566.6 | 415.0 | 152.2 | 479.3 | 283.0 | 1,613.1 | |||||||||||||||||||||
Investment income (Loss) | ||||||||||||||||||||||||||||
Realized | 13.7 | 0.2 | 8.9 | 6.5 | 9.8 | 60.3 | 25.4 | |||||||||||||||||||||
Unrealized | 1.7 | 5.5 | 13.3 | 4.1 | 14.1 | (11.0 | ) | 37.0 | ||||||||||||||||||||
Total investment income | 15.4 | 5.7 | 22.2 | 10.6 | 23.9 | 49.3 | 62.4 | |||||||||||||||||||||
Interest income | 0.7 | 1.1 | 0.8 | 1.8 | 1.8 | 3.4 | 5.5 | |||||||||||||||||||||
Other income | 2.0 | 1.3 | 1.3 | 1.6 | 1.8 | 6.0 | 6.0 | |||||||||||||||||||||
Total revenues | 154.3 | 701.9 | 562.7 | 293.4 | 637.6 | 886.3 | 2,195.6 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||||
Direct base compensation | 45.0 | 55.4 | 54.7 | 65.3 | 60.3 | 210.8 | 235.7 | |||||||||||||||||||||
Indirect base compensation | 23.2 | 18.7 | 18.0 | 18.3 | 50.0 | 78.8 | 105.0 | |||||||||||||||||||||
Equity-based compensation | 13.3 | 15.0 | 17.8 | 14.5 | 13.2 | 69.3 | 60.5 | |||||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||||
Realized | 126.7 | 26.1 | 121.6 | 147.7 | 77.5 | 472.1 | 372.9 | |||||||||||||||||||||
Unrealized | (122.7 | ) | 227.8 | 69.4 | (76.1 | ) | 141.5 | (342.6 | ) | 362.6 | ||||||||||||||||||
Total compensation and benefits | 85.5 | 343.0 | 281.5 | 169.7 | 342.5 | 488.4 | 1,136.7 | |||||||||||||||||||||
General, administrative, and other indirect expenses | (12.4 | ) | 35.0 | 28.4 | 20.5 | 35.9 | 131.9 | 119.8 | ||||||||||||||||||||
Depreciation and amortization expense | 3.4 | 3.7 | 3.7 | 4.1 | 3.8 | 13.6 | 15.3 | |||||||||||||||||||||
Interest expense | 7.0 | 6.8 | 7.3 | 7.0 | 6.8 | 28.2 | 27.9 | |||||||||||||||||||||
Total expenses | 83.5 | 388.5 | 320.9 | 201.3 | 389.0 | 662.1 | 1,299.7 | |||||||||||||||||||||
Economic Income | $ | 70.8 | $ | 313.4 | $ | 241.8 | $ | 92.1 | $ | 248.6 | $ | 224.2 | $ | 895.9 | ||||||||||||||
(-) Net Performance Fees | — | 312.7 | 224.0 | 80.6 | 260.3 | 153.5 | 877.6 | |||||||||||||||||||||
(-) Investment Income | 15.4 | 5.7 | 22.2 | 10.6 | 23.9 | 49.3 | 62.4 | |||||||||||||||||||||
(+) Equity-based compensation | 13.3 | 15.0 | 17.8 | 14.5 | 13.2 | 69.3 | 60.5 | |||||||||||||||||||||
(+) Net Interest | 6.3 | 5.7 | 6.5 | 5.2 | 5.0 | 24.8 | 22.4 | |||||||||||||||||||||
(+) Reserve for Litigation and Contingencies | (49.8 | ) | — | — | (12.5 | ) | — | — | (12.5 | ) | ||||||||||||||||||
(=) Fee Related Earnings | $ | 25.2 | $ | 15.7 | $ | 19.9 | $ | 8.1 | $ | (17.4 | ) | $ | 115.5 | $ | 26.3 | |||||||||||||
(+) Realized Net Performance Fees | 158.6 | 25.2 | 150.5 | 197.7 | 85.2 | 588.4 | 458.6 | |||||||||||||||||||||
(+) Realized Investment Income | 13.7 | 0.2 | 8.9 | 6.5 | 9.8 | 60.3 | 25.4 | |||||||||||||||||||||
(+) Net Interest | (6.3 | ) | (5.7 | ) | (6.5 | ) | (5.2 | ) | (5.0 | ) | (24.8 | ) | (22.4 | ) | ||||||||||||||
(=) Distributable Earnings | $ | 191.2 | $ | 35.4 | $ | 172.8 | $ | 207.1 | $ | 72.6 | $ | 739.4 | $ | 487.9 |
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
Real Assets | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||||
Fund management fees | $ | 59.1 | $ | 56.0 | $ | 58.2 | $ | 71.4 | $ | 78.0 | $ | 251.1 | $ | 263.6 | ||||||||||||||
Portfolio advisory fees, net | 0.1 | 0.1 | 0.1 | 0.4 | 0.2 | 0.2 | 0.8 | |||||||||||||||||||||
Transaction fees, net | — | — | — | 0.8 | 3.7 | — | 4.5 | |||||||||||||||||||||
Total fee revenues | 59.2 | 56.1 | 58.3 | 72.6 | 81.9 | 251.3 | 268.9 | |||||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||||
Realized | (26.7 | ) | 13.5 | 39.7 | 20.4 | 18.4 | 53.1 | 92.0 | ||||||||||||||||||||
Unrealized | 108.2 | 78.7 | 60.6 | 60.8 | 68.2 | 274.0 | 268.3 | |||||||||||||||||||||
Total performance fees | 81.5 | 92.2 | 100.3 | 81.2 | 86.6 | 327.1 | 360.3 | |||||||||||||||||||||
Investment income (loss) | ||||||||||||||||||||||||||||
Realized | 0.8 | (8.1 | ) | 0.3 | (64.6 | ) | 9.2 | (20.6 | ) | (63.2 | ) | |||||||||||||||||
Unrealized | (5.1 | ) | 5.2 | 6.8 | 12.4 | 2.3 | 1.4 | 26.7 | ||||||||||||||||||||
Total investment income (loss) | (4.3 | ) | (2.9 | ) | 7.1 | (52.2 | ) | 11.5 | (19.2 | ) | (36.5 | ) | ||||||||||||||||
Interest income | 0.4 | 0.6 | 0.4 | 1.0 | 1.0 | 1.7 | 3.0 | |||||||||||||||||||||
Other income | 0.6 | 0.4 | 0.3 | 0.6 | 0.9 | 1.6 | 2.2 | |||||||||||||||||||||
Total revenues | 137.4 | 146.4 | 166.4 | 103.2 | 181.9 | 562.5 | 597.9 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||||
Direct base compensation | 16.7 | 19.7 | 17.4 | 24.5 | 16.0 | 72.1 | 77.6 | |||||||||||||||||||||
Indirect base compensation | 10.9 | 10.9 | 19.9 | 14.8 | 4.9 | 39.1 | 50.5 | |||||||||||||||||||||
Equity-based compensation | 6.0 | 8.8 | 9.3 | 8.7 | 8.1 | 26.3 | 34.9 | |||||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||||
Realized | 2.8 | 6.8 | 17.4 | 9.2 | 8.2 | 37.6 | 41.6 | |||||||||||||||||||||
Unrealized | 26.7 | 19.3 | 19.2 | 21.6 | 15.2 | 81.9 | 75.3 | |||||||||||||||||||||
Total compensation and benefits | 63.1 | 65.5 | 83.2 | 78.8 | 52.4 | 257.0 | 279.9 | |||||||||||||||||||||
General, administrative, and other indirect expenses | (3.6 | ) | 15.6 | 26.5 | 10.5 | 25.9 | 67.1 | 78.5 | ||||||||||||||||||||
Depreciation and amortization expense | 1.5 | 1.8 | 1.6 | 1.9 | 1.8 | 5.9 | 7.1 | |||||||||||||||||||||
Interest expense | 3.9 | 4.1 | 4.4 | 4.2 | 4.3 | 16.0 | 17.0 | |||||||||||||||||||||
Total expenses | 64.9 | 87.0 | 115.7 | 95.4 | 84.4 | 346.0 | 382.5 | |||||||||||||||||||||
Economic Income | $ | 72.5 | $ | 59.4 | $ | 50.7 | $ | 7.8 | $ | 97.5 | $ | 216.5 | $ | 215.4 | ||||||||||||||
(-) Net Performance Fees | 52.0 | 66.1 | 63.7 | 50.4 | 63.2 | 207.6 | 243.4 | |||||||||||||||||||||
(-) Investment Income (Loss) | (4.3 | ) | (2.9 | ) | 7.1 | (52.2 | ) | 11.5 | (19.2 | ) | (36.5 | ) | ||||||||||||||||
(+) Equity-based compensation | 6.0 | 8.8 | 9.3 | 8.7 | 8.1 | 26.3 | 34.9 | |||||||||||||||||||||
(+) Net Interest | 3.5 | 3.5 | 4.0 | 3.2 | 3.3 | 14.3 | 14.0 | |||||||||||||||||||||
(+) Reserve for Litigation and Contingencies | (21.6 | ) | — | — | (5.8 | ) | — | — | (5.8 | ) | ||||||||||||||||||
(=) Fee Related Earnings | $ | 12.7 | $ | 8.5 | $ | (6.8 | ) | $ | 15.7 | $ | 34.2 | $ | 68.7 | $ | 51.6 | |||||||||||||
(+) Realized Net Performance Fees | (29.5 | ) | 6.7 | 22.3 | 11.2 | 10.2 | 15.5 | 50.4 | ||||||||||||||||||||
(+) Realized Investment Income (Loss) | 0.8 | (8.1 | ) | 0.3 | (64.6 | ) | 9.2 | (20.6 | ) | (63.2 | ) | |||||||||||||||||
(+) Net Interest | (3.5 | ) | (3.5 | ) | (4.0 | ) | (3.2 | ) | (3.3 | ) | (14.3 | ) | (14.0 | ) | ||||||||||||||
(=) Distributable Earnings | $ | (19.5 | ) | $ | 3.6 | $ | 11.8 | $ | (40.9 | ) | $ | 50.3 | $ | 49.3 | $ | 24.8 |
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
Global Credit | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||||
Fund management fees | $ | 48.1 | $ | 48.1 | $ | 45.1 | $ | 47.6 | $ | 50.7 | $ | 195.5 | $ | 191.5 | ||||||||||||||
Portfolio advisory fees, net | 0.4 | 0.1 | 0.3 | 0.1 | 0.2 | 1.1 | 0.7 | |||||||||||||||||||||
Transaction fees, net | — | — | — | — | — | — | — | |||||||||||||||||||||
Total fee revenues | 48.5 | 48.2 | 45.4 | 47.7 | 50.9 | 196.6 | 192.2 | |||||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||||
Realized | 15.1 | 5.6 | 17.2 | 15.0 | 37.6 | 36.6 | 75.4 | |||||||||||||||||||||
Unrealized | (3.4 | ) | 14.5 | (1.6 | ) | 2.6 | (31.8 | ) | 1.2 | (16.3 | ) | |||||||||||||||||
Total performance fees | 11.7 | 20.1 | 15.6 | 17.6 | 5.8 | 37.8 | 59.1 | |||||||||||||||||||||
Investment income | ||||||||||||||||||||||||||||
Realized | 2.4 | 2.4 | 1.5 | 4.7 | 3.3 | 5.1 | 11.9 | |||||||||||||||||||||
Unrealized | 0.4 | 4.2 | 0.1 | — | 1.1 | 15.3 | 5.4 | |||||||||||||||||||||
Total investment income | 2.8 | 6.6 | 1.6 | 4.7 | 4.4 | 20.4 | 17.3 | |||||||||||||||||||||
Interest income | 1.0 | 1.6 | 1.0 | 2.0 | 2.5 | 4.7 | 7.1 | |||||||||||||||||||||
Other income | 1.2 | 3.4 | 1.1 | 1.1 | 1.2 | 4.7 | 6.8 | |||||||||||||||||||||
Total revenues | 65.2 | 79.9 | 64.7 | 73.1 | 64.8 | 264.2 | 282.5 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||||
Direct base compensation | 21.1 | 17.1 | 15.2 | 23.0 | 23.9 | 87.4 | 79.2 | |||||||||||||||||||||
Indirect base compensation | 9.9 | 6.6 | 7.6 | 6.7 | 4.4 | 32.6 | 25.3 | |||||||||||||||||||||
Equity-based compensation | 3.8 | 4.3 | 7.5 | 5.1 | 3.8 | 17.6 | 20.7 | |||||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||||
Realized | 9.5 | 2.7 | 8.2 | 7.3 | 16.8 | 17.6 | 35.0 | |||||||||||||||||||||
Unrealized | (1.6 | ) | 6.8 | (0.7 | ) | 0.8 | (14.2 | ) | 0.6 | (7.3 | ) | |||||||||||||||||
Total compensation and benefits | 42.7 | 37.5 | 37.8 | 42.9 | 34.7 | 155.8 | 152.9 | |||||||||||||||||||||
General, administrative, and other indirect expenses | 172.9 | 23.2 | 21.8 | (63.6 | ) | 21.9 | 250.0 | 3.3 | ||||||||||||||||||||
Depreciation and amortization expense | 1.6 | 1.2 | 1.3 | 1.3 | 1.3 | 6.2 | 5.1 | |||||||||||||||||||||
Interest expense | 2.8 | 2.6 | 3.2 | 4.2 | 4.5 | 11.3 | 14.5 | |||||||||||||||||||||
Total expenses | 220.0 | 64.5 | 64.1 | (15.2 | ) | 62.4 | 423.3 | 175.8 | ||||||||||||||||||||
Economic Income (Loss) | $ | (154.8 | ) | $ | 15.4 | $ | 0.6 | $ | 88.3 | $ | 2.4 | $ | (159.1 | ) | $ | 106.7 | ||||||||||||
(-) Net Performance Fees | 3.8 | 10.6 | 8.1 | 9.5 | 3.2 | 19.6 | 31.4 | |||||||||||||||||||||
(-) Investment Income | 2.8 | 6.6 | 1.6 | 4.7 | 4.4 | 20.4 | 17.3 | |||||||||||||||||||||
(+) Equity-based compensation | 3.8 | 4.3 | 7.5 | 5.1 | 3.8 | 17.6 | 20.7 | |||||||||||||||||||||
(+) Net Interest | 1.8 | 1.0 | 2.2 | 2.2 | 2.0 | 6.6 | 7.4 | |||||||||||||||||||||
(+) Reserve for Litigation and Contingencies | (19.0 | ) | — | — | (4.1 | ) | — | — | (4.1 | ) | ||||||||||||||||||
(=) Fee Related Earnings | $ | (174.8 | ) | $ | 3.5 | $ | 0.6 | $ | 77.3 | $ | 0.6 | $ | (174.9 | ) | $ | 82.0 | ||||||||||||
(+) Realized Net Performance Fees | 5.6 | 2.9 | 9.0 | 7.7 | 20.8 | 19.0 | 40.4 | |||||||||||||||||||||
(+) Realized Investment Income | 2.4 | 2.4 | 1.5 | 4.7 | 3.3 | 5.1 | 11.9 | |||||||||||||||||||||
(+) Net Interest | (1.8 | ) | (1.0 | ) | (2.2 | ) | (2.2 | ) | (2.0 | ) | (6.6 | ) | (7.4 | ) | ||||||||||||||
(=) Distributable Earnings | $ | (168.6 | ) | $ | 7.8 | $ | 8.9 | $ | 87.5 | $ | 22.7 | $ | (157.4 | ) | $ | 126.9 |
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
Investment Solutions | Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Segment fee revenues | ||||||||||||||||||||||||||||
Fund management fees | $ | 36.6 | $ | 35.8 | $ | 36.2 | $ | 41.1 | $ | 41.8 | $ | 140.3 | $ | 154.9 | ||||||||||||||
Portfolio advisory fees, net | — | — | — | — | — | 0.8 | — | |||||||||||||||||||||
Transaction fees, net | — | — | — | — | — | — | — | |||||||||||||||||||||
Total fee revenues | 36.6 | 35.8 | 36.2 | 41.1 | 41.8 | 141.1 | 154.9 | |||||||||||||||||||||
Performance fees | ||||||||||||||||||||||||||||
Realized | 22.9 | 12.6 | 23.7 | 30.2 | 19.9 | 65.6 | 86.4 | |||||||||||||||||||||
Unrealized | 18.3 | 23.2 | 4.7 | 4.2 | 23.9 | 38.2 | 56.0 | |||||||||||||||||||||
Total performance fees | 41.2 | 35.8 | 28.4 | 34.4 | 43.8 | 103.8 | 142.4 | |||||||||||||||||||||
Investment income (loss) | ||||||||||||||||||||||||||||
Realized | 0.1 | 0.1 | (0.1 | ) | — | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||
Unrealized | 0.5 | 1.1 | 0.4 | 1.6 | 0.8 | (0.3 | ) | 3.9 | ||||||||||||||||||||
Total investment income (loss) | 0.6 | 1.2 | 0.3 | 1.6 | 0.9 | (0.2 | ) | 4.0 | ||||||||||||||||||||
Interest income | 0.1 | 0.1 | 0.2 | 0.6 | 0.2 | 0.4 | 1.1 | |||||||||||||||||||||
Other income | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.5 | 0.4 | |||||||||||||||||||||
Total revenues | 78.6 | 73.0 | 65.2 | 77.8 | 86.8 | 245.6 | 302.8 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||||
Direct base compensation | 16.9 | 16.1 | 16.1 | 19.7 | 20.1 | 66.8 | 72.0 | |||||||||||||||||||||
Indirect base compensation | 5.1 | 2.8 | 4.1 | 5.0 | 0.8 | 13.7 | 12.7 | |||||||||||||||||||||
Equity-based compensation | 1.3 | 2.0 | 2.1 | 2.1 | 1.6 | 6.4 | 7.8 | |||||||||||||||||||||
Performance fee related | ||||||||||||||||||||||||||||
Realized | 22.0 | 12.1 | 23.4 | 29.9 | 17.8 | 63.2 | 83.2 | |||||||||||||||||||||
Unrealized | 14.3 | 19.0 | 1.4 | (2.0 | ) | 15.4 | 27.6 | 33.8 | ||||||||||||||||||||
Total compensation and benefits | 59.6 | 52.0 | 47.1 | 54.7 | 55.7 | 177.7 | 209.5 | |||||||||||||||||||||
General, administrative, and other indirect expenses | (0.1 | ) | 6.8 | 8.7 | 6.1 | 10.7 | 34.5 | 32.3 | ||||||||||||||||||||
Depreciation and amortization expense | 0.7 | 0.8 | 0.9 | 0.9 | 1.0 | 3.3 | 3.6 | |||||||||||||||||||||
Interest expense | 1.3 | 1.5 | 1.5 | 1.6 | 1.5 | 5.8 | 6.1 | |||||||||||||||||||||
Total expenses | 61.5 | 61.1 | 58.2 | 63.3 | 68.9 | 221.3 | 251.5 | |||||||||||||||||||||
Economic Income (Loss) | $ | 17.1 | $ | 11.9 | $ | 7.0 | $ | 14.5 | $ | 17.9 | $ | 24.3 | $ | 51.3 | ||||||||||||||
(-) Net Performance Fees | 4.9 | 4.7 | 3.6 | 6.5 | 10.6 | 13.0 | 25.4 | |||||||||||||||||||||
(-) Investment Income (Loss) | 0.6 | 1.2 | 0.3 | 1.6 | 0.9 | (0.2 | ) | 4.0 | ||||||||||||||||||||
(+) Equity-based compensation | 1.3 | 2.0 | 2.1 | 2.1 | 1.6 | 6.4 | 7.8 | |||||||||||||||||||||
(+) Net Interest | 1.2 | 1.4 | 1.3 | 1.0 | 1.3 | 5.4 | 5.0 | |||||||||||||||||||||
(+) Reserve for Litigation and Contingencies | (9.6 | ) | — | — | (2.6 | ) | — | — | (2.6 | ) | ||||||||||||||||||
(=) Fee Related Earnings | $ | 4.5 | $ | 9.4 | $ | 6.5 | $ | 6.9 | $ | 9.3 | $ | 23.3 | $ | 32.1 | ||||||||||||||
(+) Realized Net Performance Fees | 0.9 | 0.5 | 0.3 | 0.3 | 2.1 | 2.4 | 3.2 | |||||||||||||||||||||
(+) Realized Investment Income (Loss) | 0.1 | 0.1 | (0.1 | ) | — | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||
(+) Net Interest | (1.2 | ) | (1.4 | ) | (1.3 | ) | (1.0 | ) | (1.3 | ) | (5.4 | ) | (5.0 | ) | ||||||||||||||
(=) Distributable Earnings | $ | 4.3 | $ | 8.6 | $ | 5.4 | $ | 6.2 | $ | 10.2 | $ | 20.4 | $ | 30.4 |
Three Months Ended December 31, 2017 | ||||||||||||||||||||
(USD in millions) | Corporate Private Equity | Real Assets | Global Credit | Investment Solutions (6) | Total | |||||||||||||||
Total AUM | ||||||||||||||||||||
Balance, Beginning of Period | $ | 55,743 | $ | 39,768 | $ | 31,875 | $ | 47,042 | $ | 174,428 | ||||||||||
New Commitments (1) | 19,129 | 3,172 | 1,897 | 613 | 24,811 | |||||||||||||||
Outflows (2) | (5,145 | ) | (984 | ) | (717 | ) | (3,029 | ) | (9,875 | ) | ||||||||||
Market Appreciation/(Depreciation) (3) | 2,870 | 1,004 | 39 | 1,293 | 5,206 | |||||||||||||||
Foreign Exchange Gain/(Loss) (4) | 147 | 6 | 123 | 531 | 807 | |||||||||||||||
Other (5) | (186 | ) | (78 | ) | 107 | (159 | ) | (316 | ) | |||||||||||
Balance, End of Period | $ | 72,558 | $ | 42,888 | $ | 33,324 | $ | 46,291 | $ | 195,061 | ||||||||||
For the Twelve Months Ended December 31, 2017 | ||||||||||||||||||||
(USD in millions) | Corporate Private Equity | Real Assets | Global Credit | Investment Solutions (6) | Total | |||||||||||||||
Total AUM | ||||||||||||||||||||
Balance, Beginning of Period | $ | 50,864 | $ | 34,252 | $ | 29,399 | $ | 43,092 | $ | 157,607 | ||||||||||
New Commitments (1) | 20,544 | 10,205 | 6,643 | 5,454 | 42,846 | |||||||||||||||
Outflows (2) | (9,377 | ) | (4,247 | ) | (3,981 | ) | (9,804 | ) | (27,409 | ) | ||||||||||
Market Appreciation/(Depreciation) (3) | 9,668 | 3,614 | 177 | 3,645 | 17,104 | |||||||||||||||
Foreign Exchange Gain/(Loss) (4) | 1,145 | 112 | 829 | 4,407 | 6,493 | |||||||||||||||
Other (5) | (286 | ) | (1,048 | ) | 257 | (503 | ) | (1,580 | ) | |||||||||||
Balance, End of Period | $ | 72,558 | $ | 42,888 | $ | 33,324 | $ | 46,291 | $ | 195,061 |
Three Months Ended December 31, 2017 | ||||||||||||||||||||
(USD in millions) | Corporate Private Equity | Real Assets (7) | Global Credit | Investment Solutions | Total | |||||||||||||||
Fee earning AUM | ||||||||||||||||||||
Balance, Beginning of Period | $ | 35,603 | $ | 29,820 | $ | 26,012 | $ | 30,346 | $ | 121,781 | ||||||||||
Inflows, including Fee-paying Commitments (1) | 1,256 | 3,308 | 275 | 959 | 5,798 | |||||||||||||||
Outflows, including Distributions (2) | (1,393 | ) | (1,772 | ) | (104 | ) | (1,638 | ) | (4,907 | ) | ||||||||||
Subscriptions, net of Redemptions (3) | — | — | — | — | — | |||||||||||||||
Changes in CLO collateral balances (4) | — | — | 860 | — | 860 | |||||||||||||||
Market Appreciation/(Depreciation) (5) | 19 | 28 | 10 | 73 | 130 | |||||||||||||||
Foreign Exchange and other (6) | 99 | 215 | 209 | 410 | 933 | |||||||||||||||
Balance, End of Period | $ | 35,584 | $ | 31,599 | $ | 27,262 | $ | 30,150 | $ | 124,595 | ||||||||||
For the Twelve Months Ended December 31, 2017 | ||||||||||||||||||||
(USD in millions) | Corporate Private Equity | Real Assets (7) | Global Credit | Investment Solutions | Total | |||||||||||||||
Fee earning AUM | ||||||||||||||||||||
Balance, Beginning of Period | $ | 36,327 | $ | 27,487 | $ | 24,126 | $ | 27,054 | $ | 114,994 | ||||||||||
Inflows, including Fee-paying Commitments (1) | 2,086 | 8,812 | 1,413 | 6,234 | 18,545 | |||||||||||||||
Outflows, including Distributions (2) | (3,692 | ) | (4,925 | ) | (265 | ) | (5,776 | ) | (14,658 | ) | ||||||||||
Subscriptions, net of Redemptions (3) | — | — | — | — | — | |||||||||||||||
Changes in CLO collateral balances (4) | — | — | 843 | — | 843 | |||||||||||||||
Market Appreciation/(Depreciation) (5) | 31 | 73 | 13 | (207 | ) | (90 | ) | |||||||||||||
Foreign Exchange and other (6) | 832 | 152 | 1,132 | 2,845 | 4,961 | |||||||||||||||
Balance, End of Period | $ | 35,584 | $ | 31,599 | $ | 27,262 | $ | 30,150 | $ | 124,595 |
TOTAL INVESTMENTS | REALIZED/PARTIALLY REALIZED INVESTMENTS (5) | ||||||||||||||||||||||||||||||||||
As of December 31, 2017 | As of December 31, 2017 | ||||||||||||||||||||||||||||||||||
Corporate Private Equity | Fund Inception Date (1) | Committed Capital | Cumulative Invested Capital (2) | Total Fair Value (3) | MOIC(4) | Gross IRR (7) (12) | Net IRR (8) (12) | 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/Committed 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 | $ | 17,937.9 | 2.4x | 16 | % | 13 | % | $ | 7,612.6 | $ | 17,937.9 | 2.4x | 16 | % | ||||||||||||||||
CP V | 5/2007 | $ | 13,719.7 | $ | 13,190.9 | $ | 27,362.9 | 2.1x | 18 | % | 14 | % | $ | 9,350.8 | $ | 24,962.3 | 2.7x | 26 | % | ||||||||||||||||
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 | € | 2,048.4 | € | 4,122.3 | 2.0x | 36 | % | 20 | % | € | 1,883.8 | € | 4,106.8 | 2.2x | 43 | % | ||||||||||||||||
CEP III | 12/2006 | € | 5,294.9 | € | 5,116.1 | € | 11,572.3 | 2.3x | 19 | % | 14 | % | € | 4,284.4 | € | 10,419.8 | 2.4x | 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 | $ | 1,628.2 | $ | 3,051.5 | 1.9x | 11 | % | 8 | % | $ | 1,628.2 | $ | 3,051.5 | 1.9x | 11 | % | ||||||||||||||||
CAP III | 5/2008 | $ | 2,551.6 | $ | 2,543.2 | $ | 4,817.2 | 1.9x | 18 | % | 12 | % | $ | 2,071.8 | $ | 4,380.2 | 2.1x | 20 | % | ||||||||||||||||
CJP I | 10/2001 | ¥ | 50,000.0 | ¥ | 47,291.4 | ¥ | 138,902.1 | 2.9x | 61 | % | 37 | % | ¥ | 47,291.4 | ¥ | 138,902.1 | 2.9x | 61 | % | ||||||||||||||||
CJP II | 7/2006 | ¥ | 165,600.0 | ¥ | 141,866.7 | ¥ | 216,622.1 | 1.5x | 8 | % | 4 | % | ¥ | 126,166.7 | ¥ | 191,642.2 | 1.5x | 7 | % | ||||||||||||||||
CGFSP I | 9/2008 | $ | 1,100.2 | $ | 1,080.7 | $ | 2,462.1 | 2.3x | 20 | % | 14 | % | $ | 977.9 | $ | 2,318.7 | 2.4x | 22 | % | ||||||||||||||||
CGFSP II | 4/2013 | $ | 1,000.0 | $ | 897.2 | $ | 1,320.5 | 1.5x | 24% | 15% | $ | 193.2 | $ | 407.3 | 2.1x | 32 | % | ||||||||||||||||||
CEOF I | 5/2011 | $ | 1,119.1 | $ | 1,164.5 | $ | 1,569.6 | 1.3x | 12 | % | 8 | % | $ | 346.9 | $ | 827.7 | 2.4x | 38 | % | ||||||||||||||||
CETP II | 2/2007 | € | 521.6 | € | 437.4 | € | 1,253.6 | 2.9x | 28 | % | 19 | % | € | 278.8 | € | 1,140.8 | 4.1x | 36 | % | ||||||||||||||||
CAGP IV | 6/2008 | $ | 1,041.4 | $ | 954.1 | $ | 1,459.9 | 1.5x | 12 | % | 7 | % | $ | 502.1 | $ | 928.6 | 1.8x | 16 | % | ||||||||||||||||
All Other Funds (9) | Various | $ | 4,655.4 | $ | 7,220.2 | 1.6x | 16 | % | 7 | % | $ | 3,747.5 | $ | 6,048.6 | 1.6x | 17 | % | ||||||||||||||||||
Coinvestments and Other (10) | Various | $ | 11,040.3 | $ | 24,964.7 | 2.3x | 36 | % | 33 | % | $ | 6,998.2 | $ | 20,778.0 | 3.0x | 36 | % | ||||||||||||||||||
Total Fully Invested/Committed Funds | $ | 62,787.0 | $ | 134,994.5 | 2.2x | 26 | % | 19 | % | $ | 49,921.3 | $ | 122,707.5 | 2.5x | 27 | % | |||||||||||||||||||
Funds in the Investment Period (6) | |||||||||||||||||||||||||||||||||||
CP VI | 5/2012 | $ | 13,000.0 | $ | 11,753.9 | $ | 16,265.3 | 1.4x | 20% | 13% | |||||||||||||||||||||||||
CEP IV | 8/2013 | € | 3,669.5 | € | 3,074.2 | € | 3,720.3 | 1.2x | 18% | 7% | |||||||||||||||||||||||||
CAP IV | 11/2012 | $ | 3,880.4 | $ | 3,184.1 | $ | 5,206.6 | 1.6x | 31% | 20% | |||||||||||||||||||||||||
CGP | 12/2014 | $ | 3,588.0 | $ | 2,668.7 | $ | 2,795.1 | 1.0x | 5% | 4% | |||||||||||||||||||||||||
CJP III | 8/2013 | ¥ | 119,505.1 | ¥ | 60,094.5 | ¥ | 105,936.6 | 1.8x | NM | NM | |||||||||||||||||||||||||
CEOF II | 3/2015 | $ | 2,400.0 | $ | 1,150.1 | $ | 1,332.4 | 1.2x | NM | NM | |||||||||||||||||||||||||
All Other Funds (11) | Various | $ | 1,385.1 | $ | 1,822.4 | 1.3x | NM | NM | |||||||||||||||||||||||||||
Total Funds in the Investment Period | $ | 24,371.2 | $ | 32,834.9 | 1.3x | 21 | % | 12 | % | $ | 1,391.0 | $ | 3,731.1 | 2.7x | 58 | % | |||||||||||||||||||
TOTAL CORPORATE PRIVATE EQUITY (13) | $ | 87,158.2 | $ | 167,829.4 | 1.9x | 26 | % | 18 | % | $ | 51,312.2 | $ | 126,438.7 | 2.5x | 27 | % |
TOTAL INVESTMENTS | REALIZED/PARTIALLY REALIZED INVESTMENTS (5) | ||||||||||||||||||||||||||||||||||
As of December 31, 2017 | As of December 31, 2017 | ||||||||||||||||||||||||||||||||||
Real Assets | Fund Inception Date (1) | Committed Capital | Cumulative Invested Capital (2) | Total Fair Value (3) | MOIC(4) | Gross IRR (7) (12) | Net IRR (8) (12) | Cumulative Invested Capital (2) | Total Fair Value (3) | MOIC(4) | Gross IRR (7) (12) | ||||||||||||||||||||||||
(Reported in Local Currency, in Millions) | (Reported in Local Currency, in Millions) | ||||||||||||||||||||||||||||||||||
Fully Invested/Committed Funds (6) | |||||||||||||||||||||||||||||||||||
CRP III | 11/2000 | $ | 564.1 | $ | 522.5 | $ | 1,850.3 | 3.5x | 44 | % | 30 | % | $ | 522.5 | $ | 1,850.3 | 3.5x | 44 | % | ||||||||||||||||
CRP IV | 12/2004 | $ | 950.0 | $ | 1,282.2 | $ | 2,022.6 | 1.6x | 8 | % | 5 | % | $ | 1,191.6 | $ | 1,962.7 | 1.6x | 8 | % | ||||||||||||||||
CRP V | 11/2006 | $ | 3,000.0 | $ | 3,430.0 | $ | 5,669.6 | 1.7x | 12 | % | 9 | % | $ | 2,942.0 | $ | 4,972.5 | 1.7x | 14 | % | ||||||||||||||||
CRP VI | 9/2010 | $ | 2,340.0 | $ | 2,219.3 | $ | 4,012.7 | 1.8x | 29 | % | 20 | % | $ | 1,581.6 | $ | 3,190.4 | 2.0x | 33 | % | ||||||||||||||||
CRP VII | 3/2014 | $ | 4,161.6 | $ | 3,220.4 | $ | 4,282.4 | 1.3x | 21% | 12% | $ | 315.2 | $ | 593.9 | 1.9x | 33 | % | ||||||||||||||||||
CEREP I | 3/2002 | € | 426.6 | € | 517.0 | € | 698.6 | 1.4x | 14 | % | 7 | % | € | 517.0 | € | 698.6 | 1.4x | 14 | % | ||||||||||||||||
CEREP II | 4/2005 | € | 762.7 | € | 833.8 | € | 128.1 | 0.2x | Neg | Neg | € | 826.7 | € | 132.3 | 0.2x | Neg | |||||||||||||||||||
CEREP III | 5/2007 | € | 2,229.5 | € | 2,025.7 | € | 2,432.2 | 1.2x | 4 | % | 1 | % | € | 1,706.7 | € | 2,247.6 | 1.3x | 6 | % | ||||||||||||||||
CIP | 9/2006 | $ | 1,143.7 | $ | 1,069.8 | $ | 1,427.6 | 1.3x | 6 | % | 3 | % | $ | 997.1 | $ | 1,365.1 | 1.4x | 6% | |||||||||||||||||
NGP X | 1/2012 | $ | 3,586.0 | $ | 3,267.2 | $ | 4,185.6 | 1.3x | 9 | % | 6 | % | $ | 1,382.9 | $ | 2,505.2 | 1.8x | 24 | % | ||||||||||||||||
NGP XI | 6/2014 | $ | 5,325.0 | $ | 3,696.7 | $ | 5,348.6 | 1.4x | 38% | 32% | $ | 228.9 | $ | 471.3 | 2.1x | 169 | % | ||||||||||||||||||
Energy II | 7/2002 | $ | 1,100.0 | $ | 1,334.8 | $ | 3,130.9 | 2.3x | 81 | % | 55 | % | $ | 1,334.8 | $ | 3,130.9 | 2.3x | 81% | |||||||||||||||||
Energy III | 10/2005 | $ | 3,800.0 | $ | 3,569.7 | $ | 5,513.1 | 1.5x | 10 | % | 7 | % | $ | 2,873.9 | $ | 5,045.9 | 1.8x | 14 | % | ||||||||||||||||
Energy IV | 12/2007 | $ | 5,979.1 | $ | 6,262.0 | $ | 8,167.3 | 1.3x | 8 | % | 5 | % | $ | 4,066.5 | $ | 6,012.2 | 1.5x | 14% | |||||||||||||||||
Renew II | 3/2008 | $ | 3,417.5 | $ | 2,809.4 | $ | 4,188.8 | 1.5x | 9 | % | 6 | % | $ | 1,555.3 | $ | 2,440.9 | 1.6x | 12 | % | ||||||||||||||||
All Other Funds (14) | Various | $ | 2,939.5 | $ | 3,289.7 | 1.1x | 4 | % | Neg | $ | 2,662.1 | $ | 3,019.5 | 1.1x | 5% | ||||||||||||||||||||
Coinvestments and Other (10) | Various | $ | 6,039.4 | $ | 9,880.3 | 1.6x | 16 | % | 13 | % | $ | 4,180.4 | $ | 7,228.9 | 1.7x | 20 | % | ||||||||||||||||||
Total Fully Invested/Committed Funds | $ | 45,721.8 | $ | 66,887.1 | 1.5x | 12 | % | 8 | % | $ | 29,501.8 | $ | 47,490.4 | 1.6x | 16 | % | |||||||||||||||||||
Funds in the Investment Period (6) | |||||||||||||||||||||||||||||||||||
CRP VIII | 5/2017 | $ | 5,010.7 | $ | 229.8 | $ | 222.5 | 1.0x | NM | NM | |||||||||||||||||||||||||
CIEP I | 9/2013 | $ | 2,500.0 | $ | 988.8 | $ | 1,510.4 | 1.5x | 28% | 11% | |||||||||||||||||||||||||
NGP XII | 7/2017 | $ | 2,776.7 | $ | 241.0 | $ | 241.0 | 1.0x | NM | NM | |||||||||||||||||||||||||
CPP II | 6/2014 | $ | 1,526.9 | $ | 643.9 | $ | 706.3 | 1.1x | NM | NM | |||||||||||||||||||||||||
CPI | 5/2016 | $ | 1,144.0 | $ | 863.4 | $ | 968.3 | 1.1x | NM | NM | |||||||||||||||||||||||||
All Other Funds (15) | Various | $ | 391.5 | $ | 359.1 | 0.9x | NM | NM | |||||||||||||||||||||||||||
Total Funds in the Investment Period | $ | 3,358.4 | $ | 4,007.5 | 1.2x | 17 | % | 5 | % | $ | — | $ | — | n/a | n/a | ||||||||||||||||||||
TOTAL Real Assets (13) | $ | 49,080.2 | $ | 70,894.6 | 1.4x | 12 | % | 8 | % | $ | 29,501.8 | $ | 47,490.4 | 1.6x | 16 | % |
TOTAL INVESTMENTS | ||||||||||||||||||||||
As of December 31, 2017 | Inception to December 31, 2017 | |||||||||||||||||||||
Global Credit (Carry Funds Only) | Fund Inception Date (1) | Committed Capital | Cumulative Invested Capital (17) | Total Fair Value (3) | MOIC (4) | Gross IRR (7) (12) | Net IRR (8) (12) | |||||||||||||||
(Reported in Local Currency, in Millions) | ||||||||||||||||||||||
Fully Invested/Committed Funds (6) | ||||||||||||||||||||||
CSP II | 6/2007 | $ | 1,352.3 | $ | 1,352.3 | $ | 2,465.6 | 1.8x | 17 | % | 11 | % | ||||||||||
CSP III | 8/2011 | $ | 702.8 | $ | 702.8 | $ | 1,163.4 | 1.7x | 32 | % | 20 | % | ||||||||||
CEMOF I | 12/2010 | $ | 1,382.5 | $ | 1,599.9 | $ | 1,419.4 | 0.9x | Neg | Neg | ||||||||||||
All Other Funds (16) | $ | 1,438.5 | $ | 1,998.3 | 1.4x | 12 | % | 7 | % | |||||||||||||
Coinvestments and Other (10) | $ | 976.4 | $ | 938.6 | 1.0x | NM | NM | |||||||||||||||
Total Fully Invested/Committed Funds | $ | 6,069.9 | $ | 7,985.3 | 1.3x | 12 | % | 6 | % | |||||||||||||
Funds in the Investment Period (6) | ||||||||||||||||||||||
CSP IV | 3/2016 | $ | 2,500.0 | $ | 661.4 | $ | 766.7 | 1.2x | NM | NM | ||||||||||||
CEMOF II | 2/2015 | $ | 2,819.2 | $ | 878.4 | $ | 933.1 | 1.1x | NM | NM | ||||||||||||
All Other Funds | $ | 173.9 | $ | 179.5 | 1.0x | NM | NM | |||||||||||||||
Total Funds in the Investment Period | $ | 1,713.7 | $ | 1,879.3 | 1.1x | NM | NM | |||||||||||||||
TOTAL Global Credit | $ | 7,783.6 | $ | 9,864.6 | 1.3x | 12 | % | 6 | % |
TOTAL INVESTMENTS | ||||||||||||||||||||||
As of December 31, 2017 | ||||||||||||||||||||||
Investment Solutions (19) | Vintage Year | Fund Size | Cumulative Invested Capital (2)(20) | Total Fair Value (3)(20) | MOIC (4) | Gross IRR (12) (21) | Net IRR (8) (12) | |||||||||||||||
(Reported in Local Currency, in Millions) | ||||||||||||||||||||||
AlpInvest | ||||||||||||||||||||||
Fully Committed Funds (18) | ||||||||||||||||||||||
Main Fund I - Fund Investments | 2000 | € | 5,174.6 | € | 4,151.9 | € | 6,831.8 | 1.6x | 12 | % | 11 | % | ||||||||||
Main Fund II - Fund Investments | 2003 | € | 4,545.0 | € | 4,727.2 | € | 7,509.9 | 1.6x | 10 | % | 9 | % | ||||||||||
Main Fund III - Fund Investments | 2005 | € | 11,500.0 | € | 12,476.5 | € | 19,895.6 | 1.6x | 10 | % | 9 | % | ||||||||||
Main Fund IV - Fund Investments | 2009 | € | 4,877.3 | € | 4,921.5 | € | 7,860.7 | 1.6x | 16 | % | 16 | % | ||||||||||
Main Fund V - Fund Investments | 2012 | € | 5,080.0 | € | 3,839.2 | € | 4,856.9 | 1.3x | 13 | % | 12 | % | ||||||||||
Main Fund VI - Fund Investments | 2015 | € | 1,106.4 | € | 393.1 | € | 403.0 | 1.0x | NM | NM | ||||||||||||
Main Fund I - Secondary Investments | 2002 | € | 519.4 | € | 469.8 | € | 884.0 | 1.9x | 57 | % | 53 | % | ||||||||||
Main Fund II - Secondary Investments | 2003 | € | 998.4 | € | 983.6 | € | 1,799.8 | 1.8x | 27 | % | 26 | % | ||||||||||
Main Fund III - Secondary Investments | 2006 | € | 2,250.0 | € | 2,271.1 | € | 3,448.5 | 1.5x | 11 | % | 10 | % | ||||||||||
Main Fund IV - Secondary Investments | 2010 | € | 1,859.1 | € | 1,895.7 | € | 3,213.3 | 1.7x | 20 | % | 19 | % | ||||||||||
Main Fund V - Secondary Investments | 2011 | € | 4,272.8 | € | 3,739.8 | € | 5,658.7 | 1.5x | 22 | % | 20 | % | ||||||||||
Main Fund II - Co-Investments | 2003 | € | 1,090.0 | € | 891.1 | € | 2,491.5 | 2.8x | 44 | % | 42 | % | ||||||||||
Main Fund III - Co-Investments | 2006 | € | 2,760.0 | € | 2,696.9 | € | 3,739.2 | 1.4x | 5 | % | 5 | % | ||||||||||
Main Fund IV - Co-Investments | 2010 | € | 1,475.0 | € | 1,309.6 | € | 3,436.7 | 2.6x | 24 | % | 22 | % | ||||||||||
Main Fund V - Co-Investments | 2012 | € | 1,122.2 | € | 1,000.8 | € | 2,402.5 | 2.4x | 34 | % | 31 | % | ||||||||||
Main Fund VI - Co-Investments | 2014 | € | 1,114.6 | € | 907.0 | € | 1,372.3 | 1.5x | 25 | % | 22 | % | ||||||||||
Main Fund II - Mezzanine Investments | 2004 | € | 700.0 | € | 739.0 | € | 1,018.0 | 1.4x | 8 | % | 7 | % | ||||||||||
Main Fund III - Mezzanine Investments | 2006 | € | 2,000.0 | € | 1,905.8 | € | 2,583.3 | 1.4x | 10 | % | 9 | % | ||||||||||
All Other Funds (22) | Various | € | 1,945.0 | € | 2,697.6 | 1.4x | 14 | % | 11 | % | ||||||||||||
Total Fully Committed Funds | € | 51,264.6 | € | 82,103.3 | 1.6x | 13 | % | 12 | % | |||||||||||||
Funds in the Commitment Period (18) | ||||||||||||||||||||||
Main Fund VI - Secondary Investments | 2017 | € | 4,263.5 | € | 668.9 | € | 769.0 | 1.1x | NM | NM | ||||||||||||
Main Fund VII - Co-Investments | 2017 | € | 2,442.5 | € | 288.7 | € | 290.2 | 1.0x | NM | NM | ||||||||||||
All Other Funds (22) | Various | € | 667.5 | € | 868.9 | 1.3x | 21 | % | 17 | % | ||||||||||||
Total Funds in the Commitment Period | € | 1,625.1 | € | 1,928.1 | 1.2x | 22 | % | 14 | % | |||||||||||||
TOTAL ALPINVEST | € | 52,889.7 | € | 84,031.4 | 1.6x | 13 | % | 12 | % | |||||||||||||
TOTAL ALPINVEST (USD) (23) | $ | 63,577.0 | $ | 101,011.4 | 1.6x | |||||||||||||||||
Metropolitan Real Estate | ||||||||||||||||||||||
Fully Committed Funds (18) | Various | $ | 2,978.4 | $ | 3,826.2 | 1.3x | 7 | % | 4 | % | ||||||||||||
Funds in the Commitment Period (18) | Various | $ | 110.6 | $ | 123.6 | 1.1x | NM | NM | ||||||||||||||
TOTAL METROPOLITAN REAL ESTATE | $ | 3,089.0 | $ | 3,949.8 | 1.3x | 7 | % | 4 | % |
Remaining Fair Value (1) | Unrealized MOIC (2) | Total MOIC (3) | % Invested (4) | In Accrued Carry/ (Giveback) (5) | LTM Realized Carry/ (Giveback) (6) | Catch-up Rate | Fee Initiation Date (7) | Quarters Since Fee Initiation | Original Investment Period End Date | |||
As of December 31, 2017 | ||||||||||||
Corporate Private Equity | (Reported in Local Currency, in Millions) | |||||||||||
CP VI | $ | 13,613.2 | 1.3x | 1.4x | 90% | X | 100% | Jun-13 | 19 | May-18 | ||
CAP IV | $ | 4,683.3 | 1.6x | 1.6x | 82% | X | 100% | Jul-13 | 18 | Nov-18 | ||
CEP IV | € | 3,246.1 | 1.2x | 1.2x | 84% | X | 100% | Sep-14 | 14 | Aug-19 | ||
CGP | $ | 2,782.8 | 1.0x | 1.0x | 74% | 100% | Jan-15 | 12 | Dec-20 | |||
CP V | $ | 2,672.7 | 0.7x | 2.1x | 96% | X | X | 100% | Jun-07 | 43 | May-13 | |
CEP III | € | 1,398.2 | 1.6x | 2.3x | 97% | X | X | 100% | Jul-07 | 42 | Dec-12 | |
CEOF II | $ | 1,220.3 | 1.1x | 1.2x | 48% | 80% | Nov-15 | 9 | Mar-21 | |||
CAP III | $ | 1,203.7 | 2.0x | 1.9x | 100% | X | X | 100% | Jun-08 | 39 | May-14 | |
CGFSP II | $ | 885.4 | 1.4x | 1.5x | 90% | X | 100% | Jun-13 | 19 | Dec-17 | ||
CEOF I | $ | 765.9 | 0.9x | 1.3x | 104% | X | 80% | Sep-11 | 26 | May-17 | ||
CJP III | ¥ | 78,171.1 | 1.6x | 1.8x | 50% | X | 100% | Sep-13 | 18 | Feb-20 | ||
CAGP IV | $ | 515.8 | 1.2x | 1.5x | 92% | 100% | Aug-08 | 38 | Jun-14 | |||
CGFSP I | $ | 210.6 | 1.2x | 2.3x | 98% | X | X | 100% | Oct-08 | 37 | Sep-14 | |
CJP II | ¥ | 21,555.0 | 1.4x | 1.5x | 86% | 80% | Oct-06 | 45 | Jul-12 | |||
CP IV | $ | 187.1 | 2.0x | 2.4x | 97% | X | X | 80% | Apr-05 | 51 | Dec-10 | |
CETP II | € | 111.5 | 0.7x | 2.9x | 84% | X | X | 100% | Jan-08 | 40 | Jul-13 | |
All Other Funds (8) | $ | 2,669.5 | 1.2x | 2.1x | NM | NM | ||||||
Coinvestment and Other (9) | $ | 4,623.9 | 1.2x | 2.3x | NM | NM | ||||||
Total Corporate Private Equity (12) | $ | 42,636.8 | 1.2x | 1.9x | ||||||||
Real Assets | ||||||||||||
NGP XI | $ | 4,684.7 | 1.4x | 1.4x | 69% | X | 80% | Feb-15 | 12 | Oct-19 | ||
CRP VII | $ | 3,625.0 | 1.3x | 1.3x | 77% | X | 80% | Jun-14 | 15 | Mar-19 | ||
Energy IV | $ | 2,820.6 | 1.0x | 1.3x | 104% | (X) | 80% | Feb-08 | 40 | Dec-13 | ||
NGP X | $ | 1,788.2 | 1.0x | 1.3x | 91% | 80% | Jan-12 | 24 | May-17 | |||
Renew II | $ | 1,708.6 | 0.8x | 1.5x | 82% | (X) | 80% | Mar-08 | 40 | May-14 | ||
CIEP I | $ | 1,428.2 | 1.5x | 1.5x | 40% | X | 80% | Oct-13 | 17 | Sep-19 | ||
CRP V | $ | 1,323.8 | 2.1x | 1.7x | 114% | X | 50% | Nov-06 | 45 | Nov-11 | ||
CPI | $ | 928.2 | 1.1x | 1.1x | n/a | X | 50% | May-16 | 7 | Apr-21 | ||
CRP VI | $ | 772.7 | 1.3x | 1.8x | 95% | X | X | 50% | Mar-11 | 28 | Mar-16 | |
CRP IV | $ | 626.7 | 3.6x | 1.6x | 135% | 50% | Jan-05 | 52 | Dec-09 | |||
CPP II | $ | 590.6 | 1.1x | 1.1x | 42% | 80% | Sep-14 | 14 | Apr-21 | |||
CRP III | $ | 464.5 | 140.3x | 3.5x | 93% | X | X | 50% | Mar-01 | 68 | May-05 | |
CEREP III | € | 233.0 | 0.7x | 1.2x | 91% | 67% | Jun-07 | 43 | May-11 | |||
Energy III | $ | 264.7 | 0.3x | 1.5x | 94% | (X) | 80% | Nov-05 | 49 | Oct-11 | ||
NGP XII | $ | 241.0 | 1.0x | 1.0x | 9% | 80% | Nov-17 | 1 | Oct-19 | |||
CRP VIII | $ | 222.5 | 1.0x | 1.0x | 5% | 80% | Aug-17 | 2 | May-22 | |||
All Other Funds (10) | $ | 664.6 | 0.7x | 1.3x | NM | NM | ||||||
Coinvestment and Other (9) | $ | 2,490.8 | 1.1x | 1.6x | NM | NM | ||||||
Total Real Assets (12) | $ | 24,925.6 | 1.2x | 1.4x | ||||||||
Global Credit | ||||||||||||
CEMOF II | $ | 892.4 | 1.0x | 1.1x | 31% | 100% | Dec-15 | 9 | Feb-20 | |||
CEMOF I | $ | 859.2 | 0.6x | 0.9x | 116% | 100% | Dec-10 | 29 | Dec-15 | |||
CSP IV | $ | 633.6 | 1.1x | 1.2x | 26% | X | 100% | Feb-17 | 4 | Jun-20 | ||
CSP III | $ | 324.8 | 1.1x | 1.7x | 100% | X | X | 80% | Dec-11 | 25 | Aug-15 | |
All Other Funds (11) | $ | 366.1 | 0.9x | 1.6x | NM | NM | ||||||
Coinvestment and Other (9) | $ | 797.4 | 0.8x | 1.0x | NM | NM | ||||||
Total Global Credit | $ | 3,873.5 | 0.8x | 1.3x |
Rank | Largest Publicly Traded Equity Positions | Fund(s) | Q4 2017 Value (2,3) | ||
1 | CoreSite Realty Corporation | CRP III, CRP IV, CRP V | $ | 1,582,516,803 | |
2 | Focus Media Information Technology Co., Ltd. | CAP III | 1,350,958,023 | ||
3 | PNB Housing Finance Limited | CAP IV | 1,211,450,697 | ||
4 | WildHorse Resource Development Corp. | NGP X(4), NGP XI (4) | 999,400,000 | ||
5 | Enviva Partners, LP | RENEW II | 919,242,330 | ||
6 | China Literature Limited | CAP IV | 727,016,932 | ||
7 | Pattern Energy Group Holdings, L.P. | RENEW II | 711,500,000 | ||
8 | USA Compression | ENERGY IV | 467,372,580 | ||
9 | Centennial Resource Development, Inc. | CP VI, NGP X (4) | 238,852,845 | ||
10 | Wesco Holdings, Inc. | CP IV | 170,916,929 | ||
Top 10 Positions | 8,379,227,139 | ||||
Total Public Equity Portfolio (carry fund only) | 9,659,216,008 | ||||
% of public portfolio in top 10 positions | 87 | % | |||
Three Months Ended December 31, 2016 | ||||||||||||||||||
Total Reportable Segments | Consolidated Funds | Reconciling Items | Carlyle Consolidated | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Revenues | $ | 435.5 | $ | 59.1 | $ | 81.3 | (a) | $ | 575.9 | |||||||||
Expenses | $ | 429.9 | $ | 47.2 | $ | 96.9 | (b) | $ | 574.0 | |||||||||
Other income | $ | — | $ | 10.0 | $ | — | (c) | $ | 10.0 | |||||||||
Economic income (loss) | $ | 5.6 | $ | 21.9 | $ | (15.6 | ) | (d) | $ | 11.9 | (1) | |||||||
Three Months Ended March 31, 2017 | ||||||||||||||||||
Total Reportable Segments | Consolidated Funds | Reconciling Items | Carlyle Consolidated | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Revenues | $ | 1,001.2 | $ | 42.9 | $ | 76.0 | (a) | $ | 1,120.1 | |||||||||
Expenses | $ | 601.1 | $ | 53.0 | $ | 155.4 | (b) | $ | 809.5 | |||||||||
Other income | $ | — | $ | 17.1 | $ | — | (c) | $ | 17.1 | |||||||||
Economic income (loss) | $ | 400.1 | $ | 7.0 | $ | (79.4 | ) | (d) | $ | 327.7 | (1) | |||||||
Three Months Ended June 30, 2017 | ||||||||||||||||||
Total Reportable Segments | Consolidated Funds | Reconciling Items | Carlyle Consolidated | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Revenues | $ | 859.0 | $ | 45.0 | $ | 4.4 | (a) | $ | 908.4 | |||||||||
Expenses | $ | 558.9 | $ | 91.9 | $ | 54.6 | (b) | $ | 705.4 | |||||||||
Other income | $ | — | $ | 40.7 | $ | — | (c) | $ | 40.7 | |||||||||
Economic income (loss) | $ | 300.1 | $ | (6.2 | ) | $ | (50.2 | ) | (d) | $ | 243.7 | (1) | ||||||
Three Months Ended September 30, 2017 | ||||||||||||||||||
Total Reportable Segments | Consolidated Funds | Reconciling Items | Carlyle Consolidated | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Revenues | $ | 547.5 | $ | 44.7 | $ | 47.7 | (a) | $ | 639.9 | |||||||||
Expenses | $ | 344.8 | $ | 52.3 | $ | 95.5 | (b) | $ | 492.6 | |||||||||
Other income | $ | — | $ | 18.6 | $ | — | (c) | $ | 18.6 | |||||||||
Economic income (loss) | $ | 202.7 | $ | 11.0 | $ | (47.8 | ) | (d) | $ | 165.9 | (1) | |||||||
Three Months Ended December 31, 2017 | ||||||||||||||||||
Total Reportable Segments | Consolidated Funds | Reconciling Items | Carlyle Consolidated | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Revenues | $ | 971.1 | $ | 45.1 | $ | (8.4 | ) | (a) | $ | 1,007.8 | ||||||||
Expenses | $ | 604.7 | $ | 43.2 | $ | (23.1 | ) | (b) | $ | 624.8 | ||||||||
Other income | $ | — | $ | 47.1 | $ | (35.1 | ) | (c) | $ | 12.0 | ||||||||
Economic income (loss) | $ | 366.4 | $ | 49.0 | $ | (20.4 | ) | (d) | $ | 395.0 | (1) | |||||||
(a) | The Revenues adjustment principally represents fund management and performance fees earned from the Consolidated Funds that were eliminated in consolidation to arrive at Carlyle’s total revenues, adjustments for amounts attributable to non-controlling interests in consolidated entities, adjustments related to expenses associated with the investments in NGP Management and its affiliates that are included in operating captions or are excluded from the segment results, adjustments to reflect Carlyle’s share of Urbplan’s net losses as a component of investment income until Urbplan was deconsolidated during 2017, the inclusion of tax expenses associated with certain performance fees, and adjustments to reflect Carlyle’s ownership interests in Claren Road (through January 2017) and ESG (through June 2016) that were included in Revenues in the Partnership’s segment reporting. |
(b) | The Expense adjustment represents the elimination of intercompany expenses of the Consolidated Funds payable to Carlyle, the inclusion of certain tax expenses associated with performance fee compensation, adjustments related to expenses associated with the investment in NGP management that are included in operating captions, adjustments to reflect Carlyle’s share of Urbplan’s net losses as a component of investment income until Urbplan was deconsolidated during 2017, changes in the tax receivable agreement liability, charges and credits associated with Carlyle corporate actions and non-recurring items and adjustments to reflect Carlyle’s economic interests in Claren Road (through January 2017) and ESG (through June 2016), as detailed below: |
Three Months Ended | ||||||||||||||||||||
Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments | $ | 48.1 | $ | 67.0 | $ | 58.5 | $ | 58.3 | $ | 57.4 | ||||||||||
Acquisition related charges, including amortization of intangibles and impairment | 27.2 | 8.8 | 9.2 | 7.2 | 10.5 | |||||||||||||||
Other non-operating expense (income) | (12.0 | ) | — | 0.1 | — | (71.5 | ) | |||||||||||||
Tax (expense) benefit associated with performance fee compensation | 1.0 | (2.9 | ) | (2.4 | ) | (1.7 | ) | (2.2 | ) | |||||||||||
Non-Carlyle economic interests in acquired business | 38.3 | 87.5 | (4.9 | ) | 46.2 | (13.1 | ) | |||||||||||||
Severance and other adjustments | 0.3 | 2.8 | 7.5 | 0.6 | 2.3 | |||||||||||||||
Elimination of expenses of Consolidated Funds | (6.0 | ) | (7.8 | ) | (13.4 | ) | (15.1 | ) | (6.5 | ) | ||||||||||
$ | 96.9 | $ | 155.4 | $ | 54.6 | $ | 95.5 | $ | (23.1 | ) | ||||||||||
(c) | The Other Income (Loss) adjustment results from the Consolidated Funds which were eliminated in consolidation to arrive at Carlyle’s total Other Income (Loss). |
(d) | Reconciliation for Economic Income and Distributable Earnings (Unaudited) |
Three Months Ended | Year Ended | |||||||||||||||||||||||||||
Dec 31, 2016 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Income before provision for income taxes | $ | 11.9 | $ | 327.7 | $ | 243.7 | $ | 165.9 | $ | 395.0 | $ | 45.3 | $ | 1,132.3 | ||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments | 48.1 | 67.0 | 58.5 | 58.3 | 57.4 | 223.4 | 241.2 | |||||||||||||||||||||
Acquisition related charges, including amortization of intangibles and impairment | 27.2 | 8.8 | 9.2 | 7.2 | 10.5 | 94.2 | 35.7 | |||||||||||||||||||||
Other non-operating expense (income)1 | (12.0 | ) | — | 0.1 | — | (71.5 | ) | (11.2 | ) | (71.4 | ) | |||||||||||||||||
Tax (expense) benefit associated with performance fees | 1.0 | (2.9 | ) | (2.4 | ) | (1.7 | ) | (2.2 | ) | (15.1 | ) | (9.2 | ) | |||||||||||||||
Net (income) loss attributable to non-controlling interests in consolidated entities | (70.8 | ) | (3.3 | ) | (16.5 | ) | (27.6 | ) | (25.1 | ) | (41.0 | ) | (72.5 | ) | ||||||||||||||
Severance and other adjustments | 0.2 | 2.8 | 7.5 | 0.6 | 2.3 | 10.3 | 13.2 | |||||||||||||||||||||
Economic Income | $ | 5.6 | $ | 400.1 | $ | 300.1 | $ | 202.7 | $ | 366.4 | $ | 305.9 | $ | 1,269.3 | ||||||||||||||
Net performance fees | 60.7 | 394.1 | 299.4 | 147.0 | 337.3 | 393.7 | 1,177.8 | |||||||||||||||||||||
Investment income (loss) | 14.5 | 10.6 | 31.2 | (35.3 | ) | 40.7 | 50.3 | 47.2 | ||||||||||||||||||||
Equity-based compensation | 24.4 | 30.1 | 36.7 | 30.4 | 26.7 | 119.6 | 123.9 | |||||||||||||||||||||
Net Interest | 12.8 | 11.6 | 14.0 | 11.6 | 11.6 | 51.1 | 48.8 | |||||||||||||||||||||
Reserve for Litigation and Contingencies | (100.0 | ) | — | — | (25.0 | ) | — | — | (25.0 | ) | ||||||||||||||||||
Fee Related Earnings | $ | (132.4 | ) | $ | 37.1 | $ | 20.2 | $ | 108.0 | $ | 26.7 | $ | 32.6 | $ | 192.0 | |||||||||||||
Realized performance fees, net of related compensation | 135.6 | 35.3 | 182.1 | 216.9 | 118.3 | 625.3 | 552.6 | |||||||||||||||||||||
Realized investment income (loss) | 17.0 | (5.4 | ) | 10.6 | (53.4 | ) | 22.4 | 44.9 | (25.8 | ) | ||||||||||||||||||
Net Interest | (12.8 | ) | (11.6 | ) | (14.0 | ) | (11.6 | ) | (11.6 | ) | (51.1 | ) | (48.8 | ) | ||||||||||||||
Distributable Earnings | $ | 7.4 | $ | 55.4 | $ | 198.9 | $ | 259.9 | $ | 155.8 | $ | 651.7 | $ | 670.0 |
Three Months Ended | Year Ended | |||||||
Dec 31, 2017 | Dec 31, 2017 | |||||||
(Dollars in millions, except unit and per unit amounts) | ||||||||
Economic Income | $ | 366.4 | $ | 1,269.3 | ||||
Less (Add): Provision (Benefit) for Income Taxes | 13.2 | 84.4 | ||||||
Less: Preferred unit distributions | $ | 6.0 | $ | 6.0 | ||||
Economic Net Income | $ | 347.2 | $ | 1,178.9 | ||||
Economic Net Income per Adjusted Unit(1) | $ | 1.01 | $ | 3.47 | ||||
Distributable Earnings | $ | 155.8 | $ | 670.0 | ||||
Less: Estimated foreign, state, and local taxes | 5.0 | 22.8 | ||||||
Less: Preferred unit distributions | 6.0 | 6.0 | ||||||
Distributable Earnings, After Taxes and Preferred Unit Distributions | $ | 144.8 | $ | 641.2 | ||||
Distributable Earnings to The Carlyle Group L.P. | $ | 43.3 | $ | 186.6 | ||||
(Add) / Less: Estimated current corporate income taxes and TRA payments | (0.5 | ) | 4.2 | |||||
Distributable Earnings Attributable to Common Unitholders | $ | 43.8 | $ | 182.4 | ||||
Distributable Earnings, net, per The Carlyle Group L.P. common unit outstanding(2) | 0.44 | $ | 1.88 | |||||
(1) Adjusted Units were determined as follows: | ||||||||
The Carlyle Group L.P. common units outstanding | 100,100,650 | 100,100,650 | ||||||
Carlyle Holdings partnership units not held by The Carlyle Group L.P. | 234,813,858 | 234,813,858 | ||||||
Dilutive effect of unvested deferred restricted common units | 8,015,178 | 7,347,645 | ||||||
Issuable Carlyle Holdings partnership units | 597,944 | 597,944 | ||||||
Total Adjusted Units | 343,527,630 | 342,860,097 |
(2) | As of December 31, 2017, there were 100,100,650 outstanding common units of The Carlyle Group L.P. In February 2018, an additional estimated 372,864 common units were issued in connection with the vesting of deferred restricted common units. For purposes of this calculation, these common units have been added to the common units outstanding as of December 31, 2017 because they will be eligible to participate in the unitholder distribution that will be paid in February 2018. The resulting total common units outstanding used for this calculation are 100,473,514. |
As of December 31, 2017 | ||||||||||||||||
Consolidated Operating Entities | Consolidated Funds | Eliminations | Consolidated | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 1,000.1 | $ | — | $ | — | $ | 1,000.1 | ||||||||
Cash and cash equivalents held at Consolidated Funds | — | 377.6 | — | 377.6 | ||||||||||||
Restricted cash | 28.7 | — | — | 28.7 | ||||||||||||
Corporate treasury investments | 376.3 | — | — | 376.3 | ||||||||||||
Accrued performance fees | 3,670.6 | — | — | 3,670.6 | ||||||||||||
Investments | 1,844.2 | — | (219.9 | ) | 1,624.3 | |||||||||||
Investments of Consolidated Funds | — | 4,534.3 | — | 4,534.3 | ||||||||||||
Due from affiliates and other receivables, net | 262.4 | — | (5.3 | ) | 257.1 | |||||||||||
Due from affiliates and other receivables of Consolidated Funds, net | — | 50.8 | — | 50.8 | ||||||||||||
Fixed assets, net | 100.4 | — | — | 100.4 | ||||||||||||
Deposits and other | 54.1 | — | — | 54.1 | ||||||||||||
Intangible assets, net | 35.9 | — | — | 35.9 | ||||||||||||
Deferred tax assets | 170.4 | — | — | 170.4 | ||||||||||||
Total assets | $ | 7,543.1 | $ | 4,962.7 | $ | (225.2 | ) | $ | 12,280.6 | |||||||
Liabilities and partners’ capital | ||||||||||||||||
Debt obligations | $ | 1,573.6 | $ | — | $ | — | $ | 1,573.6 | ||||||||
Loans payable of Consolidated Funds | — | 4,303.8 | — | 4,303.8 | ||||||||||||
Accounts payable, accrued expenses and other liabilities | 355.1 | — | — | 355.1 | ||||||||||||
Accrued compensation and benefits | 2,222.6 | — | — | 2,222.6 | ||||||||||||
Due to affiliates | 229.9 | — | — | 229.9 | ||||||||||||
Deferred revenue | 82.1 | — | — | 82.1 | ||||||||||||
Deferred tax liabilities | 75.6 | — | — | 75.6 | ||||||||||||
Other liabilities of Consolidated Funds | — | 422.1 | — | 422.1 | ||||||||||||
Accrued giveback obligations | 66.8 | — | — | 66.8 | ||||||||||||
Total liabilities | 4,605.7 | 4,725.9 | — | 9,331.6 | ||||||||||||
Total partners’ capital | 2,937.4 | 236.8 | (225.2 | ) | 2,949.0 | |||||||||||
Total liabilities and partners’ capital | $ | 7,543.1 | $ | 4,962.7 | $ | (225.2 | ) | $ | 12,280.6 |
• | Economic Income or “EI,” represents segment net income which includes certain tax expense associated with performance fees and excludes the impact of all other income taxes, changes in the tax receivable agreement liability, acquisition-related items including amortization and impairment 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 collateralized loan obligations (“CLOs”) (referred to collectively as the “Consolidated Funds”) that Carlyle consolidates in its consolidated financial statements pursuant to U.S. GAAP. Total Segment EI equals the aggregate of EI for all segments. Carlyle believes that reporting EI 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 or “FRE,” is a component of EI and is used to assess the ability of the business to cover base compensation and operating expenses from fee revenues other than performance fees. FRE differs from income (loss) before provision for income taxes computed in accordance with U.S. GAAP in that it adjusts for the items included in the calculation of EI and also adjusts EI to exclude net performance fees, investment income (loss), from investments in Carlyle funds, equity-based compensation, net interest and certain general, administrative and other expenses when the timing of any future payment is uncertain. FRE is reported as part of Carlyle’s segment results. |
• | Distributable Earnings or “DE,” is FRE plus realized net performance fees and realized investment income (loss), and is used to assess performance and amounts potentially available for distribution from Carlyle Holdings to its unitholders. DE is intended to show the amount of net realized earnings without the effects of Consolidated Funds. DE is evaluated regularly by management in making resource deployment and compensation decisions across our four reportable segments. Management also uses DE in our budgeting, forecasting, and the overall management of our segments. DE is reported as part of Carlyle's segment results. |
(b) | the amount of aggregate collateral balance and principal cash at par or aggregate principal amount of the notes of our CLOs and other structured products (inclusive of all positions); |
(c) | the net asset value (pre-redemptions and subscriptions) of our long/short credit, emerging markets, multi-product macroeconomic, fund of hedge funds vehicles, mutual fund and other hedge funds; and |
(d) | the gross assets (including assets acquired with leverage) of our business development companies, plus the capital that Carlyle is entitled to call from investors in those vehicles pursuant to the terms of their capital commitments to those vehicles. |
• | Corporate Private Equity (all): Buyout & growth funds advised by Carlyle |
• | Real Assets: Real estate, power, infrastructure and energy funds advised by Carlyle, as well as those energy funds advised by NGP Capital Management in which Carlyle is entitled to receive a share of carried interest |
• | Global Credit: Distressed credit, corporate mezzanine and energy credit funds, and other closed-end credit funds advised by Carlyle |
• | Investment Solutions: Funds and vehicles advised by AlpInvest Partners B.V. (“AlpInvest”) and Metropolitan Real Estate Equity Management, LLC (“Metropolitan), which include fund, secondary and co-investment strategies |
(a) | the amount of limited partner capital commitments, generally for carry funds where the original investment period has not expired, for AlpInvest carry funds during the commitment fee period and for Metropolitan carry funds during the weighted-average investment period of the underlying funds (see “Fee earning AUM based on capital commitments” in the table below for the amount of this component at each period); |
(b) | the remaining amount of limited partner invested capital at cost, generally for carry funds and certain co-investment vehicles where the original investment period has expired and Metropolitan carry funds after the expiration of the weighted-average investment period of the underlying funds(see “Fee earning AUM based on invested capital” in the table below for the amount of this component at each period); |
(c) | the amount of aggregate fee-earning collateral balance at par of our collateralized loan obligations (“CLOs”), as defined in the fund indentures (typically exclusive of equities and defaulted positions) as of the quarterly cut-off date for each CLO (see “Fee earning AUM based on collateral balances, at par” in the table below for the amount of this component at each period); |
(d) | the external investor portion of the net asset value of our hedge fund and fund of hedge funds vehicles (pre redemptions and subscriptions), as well as certain carry funds (see “Fee earning AUM based on net asset value” in the table below for the amount of this component at each period); |
(e) | the gross assets (including assets acquired with leverage), excluding cash and cash equivalents of our business development companies and certain carry funds (see “Fee earning AUM based on lower of cost or fair value and other” in the table below for the amount of this component at each period); and |
(f) | the lower of cost or fair value of invested capital, generally for AlpInvest carry funds where the commitment fee period has expired and certain carry funds where the investment period has expired, (see “Fee earning AUM based on lower of cost or fair value and other” in the table below for the amount of this component at each period). |