Carlyle Group LP(CG), the private equity firm that raised $671 million in an initial public offering in May, swung to a second-quarter loss as the value of its fund assets dropped, more than offsetting an increase in cash from fees.

Carlyle reported a second-quarter aftertax loss of $59 million, compared with a year-ago profit of $401 million, in terms of economic net income (ENI), which takes into account the mark-to-market valuation of its assets and after adjusting for the impact of the IPO.

Distributable earnings after taxes, including realized investment gains and accounting for cash available to pay dividends, was down 38% to $117 million. The result also adjusted for the impact of the IPO. Assets under management decreased 2% to $156.2 billion at the end of June, with fee-earnings assets under management at $112 billion.

Carlyle said it generated realized proceeds of $3 billion for its fund investors in the second quarter.

Carlyle's so-called dry powder, or capital available to invest in deals, was $40 billion at the end of June. It declared a second-quarter distribution of 11 cents per common unit.