Carlyle misses earnings forecasts for the weak private equity portfolio

NEW YORK (Reuters) – Carlyle Group LP (Reuters)CG.O) missed the earnings per share estimate for the third quarter on Wednesday, as the value of its private equity investments has risen less than its rivals due to turbulent markets in Asia.

The logo of the Carlyle Group will be shown on October 17, 2018 at the company's Japanese office in Tokyo. REUTERS / Issei Kato

Carlyle, which owns assets such as the British premium car service Addison Lee and the US entertainment services provider Apex Parks Group, said that the quarterly net income per unit was 25 cents. According to Refinitiv analysts have missed analysts' expectations for 51 cents and 56 cents compared to the previous year.

Net economic income reflects the mark-to-market valuation gains or losses of the Carlyle portfolio and is a key performance indicator for many US private equity firms.

Chief Financial Officer Curtis Buser said the "muted" ENI reflects "the impact of significant market volatility on our Asian private equity funds."

Carlyle holds shares in several Asian companies whose shares have fallen. The Hang Seng Index .HSI fell 16.5 percent year-to-date, compared to a slight increase in the US S & P 500 Index .SPX.

Overall, the value of the Carlyle Corporate Private Equity fund, which earned performance fees, rose 1 percent over the three months ended September. Rival Blackstone Group LP (BX.N) reported a 7.5% increase in equity value over the same period, while Apollo Global Management (APO.N) Private equity assets increased by 2.3 percent.

In a better position, Carlyle's assets under management increased to $ 212.3 billion. $ 6 billion in the quarter and $ 26 billion in 2018. Carlyle expects to exceed the $ 30 billion fund-raising target for 2018's fund-raising target.

"Overall, as of September 30, we raised $ 83 billion for our $ 100 billion multi-year fundraising target and are equally confident of exceeding that goal, given the remaining funds available in the market and those we expect to raise next month Quarters, "said Buser in a profit call.

The company said it would describe in detail its next fundraising target in 2019, and that would probably be greater than its current target of $ 100 billion.

Shares rose 2.4 percent at 11:50 EST, catching up at the start of the session.

Distributable Profits After Tax (DE) – the actual amount of cash available to pay dividends – decreased from $ 254.5 million in the prior year to $ 194.7 million.

Carlyle also said it would pay a quarterly payout of 42 cents per common unit.

Reporting by Joshua Franklin in New York; Cut by Peter Cooney and Susan Thomas

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