Private equity giant, Carlyle Group (CG), reported an 18% decline in first quarter earnings on Wednesday. The firm reported profit of $25 million, or 41 cents per share.

The firm’s first quarter economic net income, which takes into account the market value of assets, was $322 million or 85 cents per share. Analysts were expecting $1.01 per share.

Carlyle saw a decline in its global market strategies business. The credit and real estate investments, led to a drop in income.

Co-CEO David Rubinstein expressed optimism about Carlyle’s future, saying “as new top talent joins our seasoned leadership team and we launch new fund strategies and make targeted acquisitions, Carlyle continues to meet the increasingly complex demands of our global investor base.”

Competitor Blackstone Group performed better, with its economic net income rising 30% on strong private equity performance. Blackstone reported small declines in its real estate investments.

Ares Management looks to go public on Friday, and it will be the first private equity firm IPO since Carlyle listed in 2012. Competitor KKR did an IPO in 2010.

Carlyle shares declined 6% on Wednesday, closing at $32.

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