Abu Dhabi-backed Carlyle Group profit falls 11% in Q3

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Carlyle Group, the US private equity firm in which Abu Dhabi’s Mubadala Development Company owns a 7.5 percent stake, posted an 11 percent drop in third-quarter profit on Wednesday as asset sales generated less cash for shareholders than in any other quarter since the alternative asset manager went public.

While Carlyle's fund portfolio appreciated 4 percent in the quarter, compared with 3 percent a year earlier, it did not take advantage of favourable capital markets to exit investments to the extent some of its peers such as Blackstone Group did.

"We have a public portfolio of about $16bn. This is a pretty good time to be exiting. That does not mean that we will do secondary sales in any of those companies this quarter, but if the time and price is right I think we will," Carlyle co-Chief Executive William Conway told analysts on a conference call.

Economic net income (ENI), an earnings measure comprising cash and paper profits or losses based on how funds have been marked to market, declined to $195m in the third quarter from $219m a year earlier.

This translated into post-tax ENI per adjusted share of 51 cents, well below the average forecast of analysts in a Thomson Reuters poll of 60 cents.

Carlyle's pre-tax distributable earnings, which show how much cash is available to pay dividends, were $105m, the lowest total for any quarter since the company went public in May 2012, as Carlyle monetised less of its assets. The year-earlier figure was $207m.

Carlyle said it had additional portfolio companies in the pipeline which it expects to go public over the next two quarters, generating more performance fees for itself.

Article continued on next page...

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Coming to America

Coming to America

As Barack Obama seeks to rebalance the bloated US economy, the...

Should the Gulf introduce VAT?

Should the Gulf introduce VAT?

The GCC’s plans to bring in value-added tax were withdrawn as...

5
Why are some of the world's biggest banks leaving the UAE?

Why are some of the world's biggest banks leaving the UAE?

Large Western banks have been selling off their local assets...

2
Most Discussed
  • 17
    Nakheel PR: The toughest job in Dubai?

    You forgot to mention the sewage pit between JLT and Jumeirah Park and the terrible landscaping in Jumeirah Park The chain link fencing they want to install... more

    Monday, 30 March 2015 9:05 AM - An Emaar Fan
  • 14
    Dubai Int'l T1 is too congested, says Indian airline boss

    Question: All you people, criticizing my comment, do you work for Air India by any chance?

    Additionally, for all the whiners, I will provide you... more

    Tuesday, 31 March 2015 12:50 PM - Mosa
  • 9
    Post traumatic stress?

    I once had a Emirates Post employee hang up on me when I asked her to repeat something. That said, the worst is my management company, Kingfield Management... more

    Sunday, 29 March 2015 6:07 PM - Sarah