The logo of the Carlyle Group will be shown on October 17, 2018 at the company's Japanese office in Tokyo. REUTERS / Issei Kato
NEW YORK (Reuters) – Alternative Asset Manager Carlyle Group LP (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 sharply than that of one of its major rivals.
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.
Carlyle's corporate private equity fund, which earns performance fees, rose 1 percent in the three months ended September. Rival Blackstone Group LP (BX.N) reported a 7.5% increase in private equity holdings over the same period.
Despite the loss of revenue, Carlyle's assets under management grew to $ 212.3 billion. $ 6 billion in the quarter and $ 26 billion in 2018.
"In the third quarter, we were on the right path or ahead for many of the goals we set for this year, and we have good momentum for future growth," co-chief executives Kewsong Lee and Glenn Youngkin said in one Statement.
"Global markets are becoming increasingly volatile, but we believe Carlyle is well positioned to take advantage of market disruptions and opportunities," the pair added, commenting last week by rival KKR & Co Inc (KKR.N).
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. Peers Blackstone and KKR posted an increase in after-tax taxes compared to the prior year.
Carlyle also said it would pay a quarterly payout of 42 cents per common unit.
Reporting by Joshua Franklin in New York; Editing by Peter Cooney