Earnings of Carlyle Group LP (NASDAQ:CG) for the fourth quarter of 2012 declined by 28 percent to 182 million from 254 million during same period a year ago. Carlyle's revenue for the period was $505 million, 24 percent lower than its $666 million revenue during the fourth quarter last year.
The financial result of the company was affected by the performance of its real assets. During the period, its economic net income (ENI) from real assets was $-7 million compared with the $64 million ENI reported during the fourth quarter in 2011.
During the previous quarter, the company’s ENI from real assets was $2 million. Carlyle Group LP (NASDAQ:CG) has $40.2 billion real assets under management by the end of the fourth quarter.
The company evaluates its underlying performance using four key metrics (funds raised, equity invested, realized proceeds, and carry fund returns) known as the Carlyle Engine. During the quarter, Carlyle Group recorded $6.8 billion realized proceeds, $3.3 billion equity invested, 4 percent carry fund returns, and raised $4.6 billion funds.
For the full year, Carlyle Group raised $14 billion funds, which was higher than the $6.6 billion funds raised in 2011. The firm realized proceeds for the year were $18.7 billion compared with $17.6 billion a year earlier. The company amount of equity invested in 2012 was lower at $7.9 billion compared with the $11.8 billion in 2011. Its carry fund returns for the full year declined from 16 percent in 2011 to 14 percent.
During the fourth quarter, Carlyle Group LP (NASDAQ:CG) it distributed $0.49 earnings per share, and distributed $1.39 earnings per share since its initial public offering (IPO) in May, last year.
In a statement, William E. Conway, Jr., Co-Chief Executive Office of the company said, “I am optimistic about investment opportunities globally, in developed and emerging markets alike. We deployed and harvested capital at a solid pace in the fourth quarter, which is a reflection of the scope of the Carlyle global platform. In the fourth quarter alone, we invested $3.3 billion in equity in 96 investments in 19 countries across 24 carry funds. In the same period, we achieved $6.8 billion in realized proceeds from 155 investments across 39 carry funds. Our performance in 2012 has built a strong foundation for producing significant returns for our fund investors and Distributable Earnings for our common unit holders in 2013 and beyond.”
Carlyle Group LP (NASDAQ:CG) said it has $170.2 billion total assets under management by the end of the fourth quarter.
In a research note, analysts at Barclays commented, "The miss versus our ENI per share estimate was largely driven by realized performance fees and, to a lesser extent, unrealized performance fees coming in lower than our estimates."
On the other hand, early this month, Apollo Global Management LLC (NYSE:APO) reported that its 4Q earnings increased by 95 percent to $697 million or $1.69 per share. According to the alternative investment firm its weak performance in other segments of its business was compensated by strong gains on private equity holdings.
Meanwhile, The Blackstone Group L.P. (NYSE:BX) reported a 43 percent increase in earnings to $670 million and KKR & Co. L.P. (NYSE:KKR) said its earnings climbed by 22 percent to $347.7 million during the fourth quarter.