Carlyle Group LP(NASDAQ: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.
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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.