|
|
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
Delaware
|
|
45-2832612
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer
|
|
ý
|
|
Accelerated filer
|
|
¨
|
|
|
|
|
|||
Non-accelerated filer
|
|
¨
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
¨
|
|
|
|
|
|
|
|
|
|
|
|
Emerging growth company
|
|
¨
|
|
|
|
Page
|
|
||
|
|
|
Item 1.
|
||
|
|
|
|
Unaudited Condensed Consolidated Financial Statements – June 30, 2018 and 2017:
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
•
|
Corporate Private Equity (all): buyout & growth funds advised by Carlyle
|
•
|
Real Assets: Real estate, power, infrastructure and energy funds advised by Carlyle, as well as those energy funds advised by NGP Energy Capital Management in which Carlyle is entitled to receive a share of carried interest
|
•
|
Global Credit: Structured credit, direct lending, distressed credit, energy credit, opportunistic credit and corporate mezzanine funds, and other closed-end credit funds advised by Carlyle
|
•
|
Investment Solutions: Funds and vehicles advised by AlpInvest Partners B.V. (“AlpInvest”) and Metropolitan Real Estate Equity Management, LLC (“Metropolitan), which include primary fund, secondary and co-investment strategies
|
(a)
|
the amount of limited partner capital commitments, generally for carry funds where the original investment period has not expired, for AlpInvest carry funds during the commitment fee period and for Metropolitan carry funds during the weighted-average investment period of the underlying funds;
|
(b)
|
the remaining amount of limited partner invested capital at cost, generally for carry funds and certain co-investment vehicles where the original investment period has expired, Metropolitan carry funds after the expiration of the weighted-average investment period of the underlying funds, and one of our business development companies;
|
(c)
|
the amount of aggregate fee-earning collateral balance at par of our CLOs, as defined in the fund indentures (typically exclusive of equities and defaulted positions) as of the quarterly cut-off date for each CLO;
|
(d)
|
the external investor portion of the net asset value of our hedge fund and fund of hedge funds vehicles (pre redemptions and subscriptions), as well as certain carry funds;
|
(e)
|
the gross assets (including assets acquired with leverage), excluding cash and cash equivalents, of one of our business development companies and certain carry funds; or
|
(f)
|
the lower of cost or fair value of invested capital, generally for AlpInvest carry funds where the commitment fee period has expired and certain carry funds where the investment period has expired.
|
(b)
|
the amount of aggregate collateral balance and principal cash at par or aggregate principal amount of the notes of our CLOs and other structured products (inclusive of all positions);
|
(c)
|
the net asset value (pre-redemptions and subscriptions) of our long/short credit, emerging markets, multi-product macroeconomic, fund of hedge funds vehicles, mutual fund and other hedge funds; and
|
(d)
|
the gross assets (including assets acquired with leverage) of our business development companies, plus the capital that Carlyle is entitled to call from investors in those vehicles pursuant to the terms of their capital commitments to those vehicles.
|
|
June 30,
2018 |
|
December 31,
2017 |
||||
|
(Unaudited)
|
|
(As Adjusted)
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
876.8
|
|
|
$
|
1,000.1
|
|
Cash and cash equivalents held at Consolidated Funds
|
395.3
|
|
|
377.6
|
|
||
Restricted cash
|
1.7
|
|
|
28.7
|
|
||
Corporate treasury investments
|
343.5
|
|
|
376.3
|
|
||
Investments, including accrued performance allocations of $3,900.3 million and $3,664.3 million as of June 30, 2018 and December 31, 2017, respectively
|
5,647.6
|
|
|
5,288.6
|
|
||
Investments of Consolidated Funds
|
5,248.3
|
|
|
4,534.3
|
|
||
Due from affiliates and other receivables, net
|
303.2
|
|
|
263.4
|
|
||
Due from affiliates and other receivables of Consolidated Funds, net
|
117.5
|
|
|
50.8
|
|
||
Fixed assets, net
|
95.9
|
|
|
100.4
|
|
||
Deposits and other
|
58.5
|
|
|
54.1
|
|
||
Intangible assets, net
|
29.9
|
|
|
35.9
|
|
||
Deferred tax assets
|
176.2
|
|
|
170.4
|
|
||
Total assets
|
$
|
13,294.4
|
|
|
$
|
12,280.6
|
|
Liabilities and partners’ capital
|
|
|
|
||||
Debt obligations
|
$
|
1,591.9
|
|
|
$
|
1,573.6
|
|
Loans payable of Consolidated Funds
|
4,835.1
|
|
|
4,303.8
|
|
||
Accounts payable, accrued expenses and other liabilities
|
365.7
|
|
|
355.1
|
|
||
Accrued compensation and benefits
|
2,346.7
|
|
|
2,222.6
|
|
||
Due to affiliates
|
170.0
|
|
|
229.9
|
|
||
Deferred revenue
|
62.0
|
|
|
82.1
|
|
||
Deferred tax liabilities
|
69.7
|
|
|
75.6
|
|
||
Other liabilities of Consolidated Funds
|
666.8
|
|
|
422.1
|
|
||
Accrued giveback obligations
|
63.2
|
|
|
66.8
|
|
||
Total liabilities
|
10,171.1
|
|
|
9,331.6
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Series A preferred units (16,000,000 units issued and outstanding as of June 30, 2018 and December 31, 2017, respectively)
|
387.5
|
|
|
387.5
|
|
||
Partners’ capital (common units 102,119,818 and 100,100,650 issued and outstanding as of June 30, 2018 and December 31, 2017, respectively)
|
738.4
|
|
|
701.8
|
|
||
Accumulated other comprehensive loss
|
(79.6
|
)
|
|
(72.7
|
)
|
||
Non-controlling interests in consolidated entities
|
382.3
|
|
|
404.7
|
|
||
Non-controlling interests in Carlyle Holdings
|
1,694.7
|
|
|
1,527.7
|
|
||
Total partners’ capital
|
3,123.3
|
|
|
2,949.0
|
|
||
Total liabilities and partners’ capital
|
$
|
13,294.4
|
|
|
$
|
12,280.6
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
(As Adjusted)
|
|
|
|
(As Adjusted)
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
301.3
|
|
|
$
|
238.8
|
|
|
$
|
565.8
|
|
|
$
|
485.1
|
|
Incentive fees
|
7.4
|
|
|
11.1
|
|
|
13.7
|
|
|
16.7
|
|
||||
Investment income (loss)
|
|
|
|
|
|
|
|
||||||||
Performance allocations
|
|
|
|
|
|
|
|
||||||||
Realized
|
97.4
|
|
|
346.6
|
|
|
318.0
|
|
|
424.2
|
|
||||
Unrealized
|
327.7
|
|
|
185.9
|
|
|
415.2
|
|
|
784.3
|
|
||||
Principal investment income (loss)
|
|
|
|
|
|
|
|
||||||||
Realized
|
36.3
|
|
|
26.7
|
|
|
63.8
|
|
|
26.5
|
|
||||
Unrealized
|
41.9
|
|
|
32.3
|
|
|
68.5
|
|
|
78.8
|
|
||||
Total investment income
|
503.3
|
|
|
591.5
|
|
|
865.5
|
|
|
1,313.8
|
|
||||
Interest and other income
|
28.0
|
|
|
5.6
|
|
|
50.5
|
|
|
16.0
|
|
||||
Interest and other income of Consolidated Funds
|
53.6
|
|
|
45.0
|
|
|
100.9
|
|
|
87.9
|
|
||||
Revenue of a real estate VIE
|
—
|
|
|
16.4
|
|
|
—
|
|
|
109.0
|
|
||||
Total revenues
|
893.6
|
|
|
908.4
|
|
|
1,596.4
|
|
|
2,028.5
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
176.0
|
|
|
151.0
|
|
|
363.3
|
|
|
297.0
|
|
||||
Equity-based compensation
|
64.9
|
|
|
88.0
|
|
|
149.8
|
|
|
160.8
|
|
||||
Performance allocations and incentive fee related compensation
|
|
|
|
|
|
|
|
||||||||
Realized
|
51.7
|
|
|
166.7
|
|
|
160.1
|
|
|
212.5
|
|
||||
Unrealized
|
170.3
|
|
|
90.4
|
|
|
219.9
|
|
|
361.7
|
|
||||
Total compensation and benefits
|
462.9
|
|
|
496.1
|
|
|
893.1
|
|
|
1,032.0
|
|
||||
General, administrative and other expenses
|
126.8
|
|
|
95.8
|
|
|
221.8
|
|
|
189.6
|
|
||||
Interest
|
18.4
|
|
|
16.5
|
|
|
36.3
|
|
|
31.5
|
|
||||
Interest and other expenses of Consolidated Funds
|
45.3
|
|
|
78.5
|
|
|
81.2
|
|
|
123.7
|
|
||||
Interest and other expenses of a real estate VIE and loss on deconsolidation
|
—
|
|
|
18.4
|
|
|
—
|
|
|
138.0
|
|
||||
Other non-operating expenses
|
0.3
|
|
|
0.1
|
|
|
0.6
|
|
|
0.1
|
|
||||
Total expenses
|
653.7
|
|
|
705.4
|
|
|
1,233.0
|
|
|
1,514.9
|
|
||||
Other income
|
|
|
|
|
|
|
|
||||||||
Net investment gains of Consolidated Funds
|
12.9
|
|
|
40.7
|
|
|
14.9
|
|
|
57.8
|
|
||||
Income before provision for income taxes
|
252.8
|
|
|
243.7
|
|
|
378.3
|
|
|
571.4
|
|
||||
Provision for income taxes
|
11.6
|
|
|
13.2
|
|
|
19.4
|
|
|
19.0
|
|
||||
Net income
|
241.2
|
|
|
230.5
|
|
|
358.9
|
|
|
552.4
|
|
||||
Net income attributable to non-controlling interests in consolidated entities
|
16.7
|
|
|
16.5
|
|
|
27.7
|
|
|
19.8
|
|
||||
Net income attributable to Carlyle Holdings
|
224.5
|
|
|
214.0
|
|
|
331.2
|
|
|
532.6
|
|
||||
Net income attributable to non-controlling interests in Carlyle Holdings
|
155.1
|
|
|
156.4
|
|
|
222.1
|
|
|
392.0
|
|
||||
Net income attributable to The Carlyle Group L.P.
|
69.4
|
|
|
57.6
|
|
|
109.1
|
|
|
140.6
|
|
||||
Net income attributable to Series A Preferred Unitholders
|
5.9
|
|
|
—
|
|
|
11.8
|
|
|
—
|
|
||||
Net income attributable to The Carlyle Group L.P. Common Unitholders
|
$
|
63.5
|
|
|
$
|
57.6
|
|
|
$
|
97.3
|
|
|
$
|
140.6
|
|
Net income attributable to The Carlyle Group L.P. per common unit (see Note 11)
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.62
|
|
|
$
|
0.65
|
|
|
$
|
0.96
|
|
|
$
|
1.61
|
|
Diluted
|
$
|
0.56
|
|
|
$
|
0.59
|
|
|
$
|
0.87
|
|
|
$
|
1.49
|
|
Weighted-average common units
|
|
|
|
|
|
|
|
||||||||
Basic
|
102,465,109
|
|
|
88,801,343
|
|
|
101,603,587
|
|
|
87,079,007
|
|
||||
Diluted
|
112,582,728
|
|
|
96,986,255
|
|
|
111,948,144
|
|
|
94,486,422
|
|
||||
Distributions declared per common unit
|
$
|
0.27
|
|
|
$
|
0.10
|
|
|
$
|
0.60
|
|
|
$
|
0.26
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
$
|
241.2
|
|
|
$
|
230.5
|
|
|
$
|
358.9
|
|
|
$
|
552.4
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
(56.3
|
)
|
|
39.3
|
|
|
(25.7
|
)
|
|
49.4
|
|
||||
Defined benefit plans
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) for the period
|
0.7
|
|
|
(1.0
|
)
|
|
(0.3
|
)
|
|
(1.0
|
)
|
||||
Less: reclassification adjustment for loss during the period, included in cash-based compensation and benefits expense
|
0.3
|
|
|
0.3
|
|
|
0.5
|
|
|
0.6
|
|
||||
Other comprehensive income (loss)
|
(55.3
|
)
|
|
38.6
|
|
|
(25.5
|
)
|
|
49.0
|
|
||||
Comprehensive income
|
185.9
|
|
|
269.1
|
|
|
333.4
|
|
|
601.4
|
|
||||
Comprehensive (income) loss attributable to non-controlling interests in consolidated entities
|
1.8
|
|
|
(23.0
|
)
|
|
(20.5
|
)
|
|
(29.9
|
)
|
||||
Comprehensive income attributable to Carlyle Holdings
|
187.7
|
|
|
246.1
|
|
|
312.9
|
|
|
571.5
|
|
||||
Comprehensive income attributable to non-controlling interests in Carlyle Holdings
|
(129.5
|
)
|
|
(179.6
|
)
|
|
(209.3
|
)
|
|
(420.2
|
)
|
||||
Comprehensive income attributable to The Carlyle Group L.P.
|
$
|
58.2
|
|
|
$
|
66.5
|
|
|
$
|
103.6
|
|
|
$
|
151.3
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
358.9
|
|
|
$
|
552.4
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
21.9
|
|
|
20.1
|
|
||
Equity-based compensation
|
149.8
|
|
|
160.8
|
|
||
Non-cash net performance allocations and incentive fees
|
(215.6
|
)
|
|
(511.8
|
)
|
||
Other non-cash amounts
|
4.7
|
|
|
(6.1
|
)
|
||
Consolidated Funds related:
|
|
|
|
||||
Realized/unrealized (gain) loss on investments of Consolidated Funds
|
41.5
|
|
|
(29.6
|
)
|
||
Realized/unrealized gain from loans payable of Consolidated Funds
|
(56.4
|
)
|
|
(28.2
|
)
|
||
Purchases of investments by Consolidated Funds
|
(2,137.0
|
)
|
|
(1,514.9
|
)
|
||
Proceeds from sale and settlements of investments by Consolidated Funds
|
1,261.2
|
|
|
1,746.8
|
|
||
Non-cash interest income, net
|
(1.9
|
)
|
|
(2.6
|
)
|
||
Change in cash and cash equivalents held at Consolidated Funds
|
256.8
|
|
|
345.4
|
|
||
Change in other receivables held at Consolidated Funds
|
(74.8
|
)
|
|
(28.1
|
)
|
||
Change in other liabilities held at Consolidated Funds
|
(12.6
|
)
|
|
(219.3
|
)
|
||
Principal investment income
|
(131.1
|
)
|
|
(103.8
|
)
|
||
Purchases of investments
|
(228.9
|
)
|
|
(204.3
|
)
|
||
Proceeds from the sale of investments
|
379.8
|
|
|
306.9
|
|
||
Payments of contingent consideration
|
(37.5
|
)
|
|
(22.5
|
)
|
||
Deconsolidation of Claren Road
|
—
|
|
|
(23.3
|
)
|
||
Changes in deferred taxes, net
|
(2.6
|
)
|
|
0.3
|
|
||
Change in due from affiliates and other receivables
|
(48.3
|
)
|
|
(74.2
|
)
|
||
Change in receivables and inventory of a real estate VIE
|
—
|
|
|
(14.5
|
)
|
||
Change in deposits and other
|
(12.1
|
)
|
|
(9.3
|
)
|
||
Change in other assets of a real estate VIE
|
—
|
|
|
1.6
|
|
||
Change in accounts payable, accrued expenses and other liabilities
|
0.8
|
|
|
(3.3
|
)
|
||
Change in accrued compensation and benefits
|
(8.9
|
)
|
|
(41.1
|
)
|
||
Change in due to affiliates
|
(26.6
|
)
|
|
0.1
|
|
||
Change in other liabilities of a real estate VIE
|
—
|
|
|
47.9
|
|
||
Change in deferred revenue
|
(19.3
|
)
|
|
27.7
|
|
||
Net cash (used in) provided by operating activities
|
(538.2
|
)
|
|
373.1
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchases of fixed assets, net
|
(12.5
|
)
|
|
(16.7
|
)
|
||
Net cash used in investing activities
|
(12.5
|
)
|
|
(16.7
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Borrowings under credit facility
|
—
|
|
|
250.0
|
|
||
Repayments under credit facility
|
—
|
|
|
(250.0
|
)
|
||
Payments on debt obligations
|
(13.8
|
)
|
|
—
|
|
||
Proceeds from debt obligations
|
34.5
|
|
|
112.1
|
|
||
Net payments on loans payable of a real estate VIE
|
—
|
|
|
(14.3
|
)
|
||
Net borrowings (payments) on loans payable of Consolidated Funds
|
694.5
|
|
|
(310.4
|
)
|
||
Payments of contingent consideration
|
—
|
|
|
(0.4
|
)
|
||
Distributions to common unitholders
|
(61.0
|
)
|
|
(22.7
|
)
|
||
Distributions to preferred unitholders
|
(11.8
|
)
|
|
—
|
|
||
Distributions to non-controlling interest holders in Carlyle Holdings
|
(140.4
|
)
|
|
(63.1
|
)
|
||
Contributions from non-controlling interest holders
|
8.9
|
|
|
25.8
|
|
||
Distributions to non-controlling interest holders
|
(51.8
|
)
|
|
(53.0
|
)
|
||
Common units repurchased
|
(51.0
|
)
|
|
(0.2
|
)
|
||
Change in due to/from affiliates financing activities
|
4.0
|
|
|
49.2
|
|
||
Net cash provided by (used in) financing activities
|
412.1
|
|
|
(277.0
|
)
|
||
Effect of foreign exchange rate changes
|
(11.7
|
)
|
|
35.9
|
|
||
(Decrease) increase in cash, cash equivalents and restricted cash
|
(150.3
|
)
|
|
115.3
|
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
1,028.8
|
|
|
684.0
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
878.5
|
|
|
$
|
799.3
|
|
Supplemental non-cash disclosures
|
|
|
|
||||
Net increase (decrease) in partners’ capital and accumulated other comprehensive income related to reallocation of ownership interest in Carlyle Holdings
|
$
|
(1.0
|
)
|
|
$
|
6.9
|
|
Tax effect from acquisition of Carlyle Holdings partnership units:
|
|
|
|
||||
Deferred tax asset
|
$
|
4.6
|
|
|
$
|
14.8
|
|
Tax receivable agreement liability
|
$
|
3.7
|
|
|
$
|
12.9
|
|
Total partners’ capital
|
$
|
0.9
|
|
|
$
|
1.9
|
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents and restricted cash, end of period:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
876.8
|
|
|
$
|
789.9
|
|
Restricted cash
|
1.7
|
|
|
9.4
|
|
||
Total cash, cash equivalents and restricted cash, end of period
|
$
|
878.5
|
|
|
$
|
799.3
|
|
|
|
|
|
||||
Cash and cash equivalents held at Consolidated Funds
|
$
|
395.3
|
|
|
$
|
416.1
|
|
|
Three Months Ended June 30, 2017
|
||||||||||
|
As Previously Reported
|
|
Reclassifications
|
|
As Adjusted
|
||||||
|
(Dollars in millions)
|
||||||||||
Performance fees
1
|
|
|
|
|
|
||||||
Realized
|
$
|
357.7
|
|
|
$
|
(346.6
|
)
|
|
$
|
11.1
|
|
Unrealized
|
185.9
|
|
|
(185.9
|
)
|
|
—
|
|
|||
Total performance fees
1
|
$
|
543.6
|
|
|
$
|
(532.5
|
)
|
|
$
|
11.1
|
|
Investment income (loss)
2
|
|
|
|
|
|
||||||
Realized
|
$
|
26.7
|
|
|
$
|
346.6
|
|
|
$
|
373.3
|
|
Unrealized
|
32.3
|
|
|
185.9
|
|
|
218.2
|
|
|||
Total investment income
2
|
$
|
59.0
|
|
|
$
|
532.5
|
|
|
$
|
591.5
|
|
|
Six Months Ended June 30, 2017
|
||||||||||
|
As Previously Reported
|
|
Reclassifications
|
|
As Adjusted
|
||||||
|
(Dollars in millions)
|
||||||||||
Performance fees
1
|
|
|
|
|
|
||||||
Realized
|
$
|
440.9
|
|
|
$
|
(424.2
|
)
|
|
$
|
16.7
|
|
Unrealized
|
784.3
|
|
|
(784.3
|
)
|
|
—
|
|
|||
Total performance fees
1
|
$
|
1,225.2
|
|
|
$
|
(1,208.5
|
)
|
|
$
|
16.7
|
|
Investment income (loss)
2
|
|
|
|
|
|
||||||
Realized
|
$
|
26.5
|
|
|
$
|
424.2
|
|
|
$
|
450.7
|
|
Unrealized
|
78.8
|
|
|
784.3
|
|
|
863.1
|
|
|||
Total investment income
2
|
$
|
105.3
|
|
|
$
|
1,208.5
|
|
|
$
|
1,313.8
|
|
(1)
|
As adjusted, amounts now labeled as incentive fees in the unaudited condensed consolidated statements of operations.
|
(2)
|
As adjusted, amounts now labeled as performance allocations and principal investment income within investment income (loss) in the unaudited condensed consolidated statements of operations.
|
|
As of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Dollars in millions)
|
||||||
Currency translation adjustments
|
$
|
(75.7
|
)
|
|
$
|
(68.8
|
)
|
Unrealized losses on defined benefit plans
|
(3.9
|
)
|
|
(3.9
|
)
|
||
Total
|
$
|
(79.6
|
)
|
|
$
|
(72.7
|
)
|
(Dollars in millions)
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Investments of Consolidated Funds:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11.1
|
|
|
$
|
11.1
|
|
Bonds
|
—
|
|
|
—
|
|
|
640.1
|
|
|
640.1
|
|
||||
Loans
|
—
|
|
|
—
|
|
|
4,597.1
|
|
|
4,597.1
|
|
||||
|
—
|
|
|
—
|
|
|
5,248.3
|
|
|
5,248.3
|
|
||||
Investments in CLOs and other
|
—
|
|
|
—
|
|
|
446.7
|
|
|
446.7
|
|
||||
Corporate treasury investments
|
|
|
|
|
|
|
|
||||||||
Bonds
|
—
|
|
|
155.9
|
|
|
—
|
|
|
155.9
|
|
||||
Commercial paper and other
|
—
|
|
|
187.6
|
|
|
—
|
|
|
187.6
|
|
||||
|
—
|
|
|
343.5
|
|
|
—
|
|
|
343.5
|
|
||||
Foreign currency forward contracts
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
||||
Total
|
$
|
—
|
|
|
$
|
343.7
|
|
|
$
|
5,695.0
|
|
|
$
|
6,038.7
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Loans payable of Consolidated Funds
(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,835.1
|
|
|
$
|
4,835.1
|
|
Contingent consideration
|
—
|
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
||||
Foreign currency forward contracts
|
—
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
||||
Total
|
$
|
—
|
|
|
$
|
2.2
|
|
|
$
|
4,836.1
|
|
|
$
|
4,838.3
|
|
(1)
|
Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets, less (i) the fair value of any beneficial interests held by the Partnership and (ii) the carrying value of any beneficial interests that represent compensation for services.
|
(Dollars in millions)
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Investments of Consolidated Funds:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7.9
|
|
|
$
|
7.9
|
|
Bonds
|
—
|
|
|
—
|
|
|
413.4
|
|
|
413.4
|
|
||||
Loans
|
—
|
|
|
—
|
|
|
4,112.7
|
|
|
4,112.7
|
|
||||
Other
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
||||
|
—
|
|
|
—
|
|
|
4,534.3
|
|
|
4,534.3
|
|
||||
Investments in CLOs and other
|
—
|
|
|
—
|
|
|
405.4
|
|
|
405.4
|
|
||||
Corporate treasury investments
|
|
|
|
|
|
|
|
||||||||
Bonds
|
—
|
|
|
194.1
|
|
|
—
|
|
|
194.1
|
|
||||
Commercial paper and other
|
—
|
|
|
182.2
|
|
|
—
|
|
|
182.2
|
|
||||
|
—
|
|
|
376.3
|
|
|
—
|
|
|
376.3
|
|
||||
Foreign currency forward contracts
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
||||
Total
|
$
|
—
|
|
|
$
|
376.7
|
|
|
$
|
4,939.7
|
|
|
$
|
5,316.4
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Loans payable of Consolidated Funds
(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,303.8
|
|
|
$
|
4,303.8
|
|
Contingent consideration
|
—
|
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
||||
Foreign currency forward contracts
|
—
|
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
||||
Total
|
$
|
—
|
|
|
$
|
1.2
|
|
|
$
|
4,304.8
|
|
|
$
|
4,306.0
|
|
(1)
|
Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets, less (i) the fair value of any beneficial interests held by the Partnership and (ii) the carrying value of any beneficial interests that represent compensation for services.
|
|
Financial Assets
|
||||||||||||||||||||||
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Investments of Consolidated Funds
|
|
|
|
|
||||||||||||||||||
|
Equity
securities |
|
Bonds
|
|
Loans
|
|
Other
|
|
Investments in CLOs and other
|
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
10.8
|
|
|
$
|
486.2
|
|
|
$
|
4,498.6
|
|
|
$
|
0.3
|
|
|
$
|
454.3
|
|
|
$
|
5,450.2
|
|
Purchases
|
—
|
|
|
262.5
|
|
|
963.3
|
|
|
—
|
|
|
—
|
|
|
1,225.8
|
|
||||||
Sales and distributions
|
—
|
|
|
(72.0
|
)
|
|
(457.8
|
)
|
|
(0.4
|
)
|
|
(3.5
|
)
|
|
(533.7
|
)
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
(201.0
|
)
|
|
—
|
|
|
—
|
|
|
(201.0
|
)
|
||||||
Realized and unrealized gains (losses), net
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Included in earnings
|
0.7
|
|
|
(11.0
|
)
|
|
(15.8
|
)
|
|
0.1
|
|
|
3.7
|
|
|
(22.3
|
)
|
||||||
Included in other comprehensive income
|
(0.4
|
)
|
|
(25.6
|
)
|
|
(190.2
|
)
|
|
—
|
|
|
(7.8
|
)
|
|
(224.0
|
)
|
||||||
Balance, end of period
|
$
|
11.1
|
|
|
$
|
640.1
|
|
|
$
|
4,597.1
|
|
|
$
|
—
|
|
|
$
|
446.7
|
|
|
$
|
5,695.0
|
|
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date
|
$
|
0.7
|
|
|
$
|
(14.1
|
)
|
|
$
|
(10.6
|
)
|
|
$
|
—
|
|
|
$
|
3.6
|
|
|
$
|
(20.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Financial Assets
|
||||||||||||||||||||||
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Investments of Consolidated Funds
|
|
|
|
|
||||||||||||||||||
|
Equity
securities |
|
Bonds
|
|
Loans
|
|
Other
|
|
Investments in CLOs and other
|
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
7.9
|
|
|
$
|
413.4
|
|
|
$
|
4,112.7
|
|
|
$
|
0.3
|
|
|
$
|
405.4
|
|
|
$
|
4,939.7
|
|
Purchases
|
—
|
|
|
387.0
|
|
|
1,750.0
|
|
|
—
|
|
|
45.0
|
|
|
2,182.0
|
|
||||||
Sales and distributions
|
—
|
|
|
(127.4
|
)
|
|
(697.6
|
)
|
|
(0.4
|
)
|
|
(6.5
|
)
|
|
(831.9
|
)
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
(435.8
|
)
|
|
—
|
|
|
—
|
|
|
(435.8
|
)
|
||||||
Realized and unrealized gains (losses), net
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Included in earnings
|
3.4
|
|
|
(17.8
|
)
|
|
(24.2
|
)
|
|
0.1
|
|
|
5.8
|
|
|
(32.7
|
)
|
||||||
Included in other comprehensive income
|
(0.2
|
)
|
|
(15.1
|
)
|
|
(108.0
|
)
|
|
—
|
|
|
(3.0
|
)
|
|
(126.3
|
)
|
||||||
Balance, end of period
|
$
|
11.1
|
|
|
$
|
640.1
|
|
|
$
|
4,597.1
|
|
|
$
|
—
|
|
|
$
|
446.7
|
|
|
$
|
5,695.0
|
|
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date
|
$
|
3.4
|
|
|
$
|
(18.4
|
)
|
|
$
|
(12.1
|
)
|
|
$
|
—
|
|
|
$
|
5.8
|
|
|
$
|
(21.3
|
)
|
|
Financial Assets
|
||||||||||||||||||||||
|
Three Months Ended June 30, 2017
|
||||||||||||||||||||||
|
Investments of Consolidated Funds
|
|
|
|
|
||||||||||||||||||
|
Equity
securities |
|
Bonds
|
|
Loans
|
|
Other
|
|
Investments in CLOs and other
|
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
10.8
|
|
|
$
|
417.6
|
|
|
$
|
3,473.2
|
|
|
$
|
1.5
|
|
|
$
|
155.9
|
|
|
$
|
4,059.0
|
|
Purchases
|
—
|
|
|
50.7
|
|
|
772.7
|
|
|
—
|
|
|
60.8
|
|
|
884.2
|
|
||||||
Sales and distributions
|
(1.6
|
)
|
|
(99.9
|
)
|
|
(595.4
|
)
|
|
0.1
|
|
|
(1.0
|
)
|
|
(697.8
|
)
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
(294.3
|
)
|
|
—
|
|
|
—
|
|
|
(294.3
|
)
|
||||||
Realized and unrealized gains (losses), net
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Included in earnings
|
—
|
|
|
0.4
|
|
|
(5.1
|
)
|
|
0.3
|
|
|
3.2
|
|
|
(1.2
|
)
|
||||||
Included in other comprehensive income
|
0.5
|
|
|
27.1
|
|
|
149.0
|
|
|
0.1
|
|
|
4.0
|
|
|
180.7
|
|
||||||
Balance, end of period
|
$
|
9.7
|
|
|
$
|
395.9
|
|
|
$
|
3,500.1
|
|
|
$
|
2.0
|
|
|
$
|
222.9
|
|
|
$
|
4,130.6
|
|
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date
|
$
|
5.0
|
|
|
$
|
0.7
|
|
|
$
|
5.8
|
|
|
$
|
0.4
|
|
|
$
|
3.2
|
|
|
$
|
15.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Financial Assets
|
||||||||||||||||||||||
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||
|
Investments of Consolidated Funds
|
|
|
|
|
||||||||||||||||||
|
Equity
securities |
|
Bonds
|
|
Loans
|
|
Other
|
|
Investments in CLOs and other
|
|
Total
|
||||||||||||
Balance, beginning of period
|
$
|
10.3
|
|
|
$
|
396.4
|
|
|
$
|
3,485.6
|
|
|
$
|
1.4
|
|
|
$
|
152.6
|
|
|
$
|
4,046.3
|
|
Purchases
|
—
|
|
|
116.8
|
|
|
1,398.1
|
|
|
—
|
|
|
60.8
|
|
|
1,575.7
|
|
||||||
Sales and distributions
|
(1.6
|
)
|
|
(156.3
|
)
|
|
(1,003.5
|
)
|
|
0.1
|
|
|
(3.1
|
)
|
|
(1,164.4
|
)
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
(585.4
|
)
|
|
—
|
|
|
—
|
|
|
(585.4
|
)
|
||||||
Realized and unrealized gains (losses), net
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Included in earnings
|
0.3
|
|
|
5.7
|
|
|
25.9
|
|
|
0.4
|
|
|
6.1
|
|
|
38.4
|
|
||||||
Included in other comprehensive income
|
0.7
|
|
|
33.3
|
|
|
179.4
|
|
|
0.1
|
|
|
6.5
|
|
|
220.0
|
|
||||||
Balance, end of period
|
$
|
9.7
|
|
|
$
|
395.9
|
|
|
$
|
3,500.1
|
|
|
$
|
2.0
|
|
|
$
|
222.9
|
|
|
$
|
4,130.6
|
|
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date
|
$
|
5.3
|
|
|
$
|
5.6
|
|
|
$
|
24.7
|
|
|
$
|
0.4
|
|
|
$
|
6.1
|
|
|
$
|
42.1
|
|
|
Financial Liabilities
|
||||||||||
|
Three Months Ended June 30, 2018
|
||||||||||
|
Loans Payable
of Consolidated Funds |
|
Contingent
Consideration |
|
Total
|
||||||
Balance, beginning of period
|
$
|
4,554.5
|
|
|
$
|
1.1
|
|
|
$
|
4,555.6
|
|
Borrowings
|
1,264.1
|
|
|
—
|
|
|
1,264.1
|
|
|||
Paydowns
|
(750.2
|
)
|
|
—
|
|
|
(750.2
|
)
|
|||
Realized and unrealized (gains) losses, net
|
|
|
|
|
|
||||||
Included in earnings
|
(38.9
|
)
|
|
(0.1
|
)
|
|
(39.0
|
)
|
|||
Included in other comprehensive income
|
(194.4
|
)
|
|
—
|
|
|
(194.4
|
)
|
|||
Balance, end of period
|
$
|
4,835.1
|
|
|
$
|
1.0
|
|
|
$
|
4,836.1
|
|
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date
|
$
|
(41.0
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(41.1
|
)
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
Financial Liabilities
|
||||||||||
|
Six Months Ended June 30, 2018
|
||||||||||
|
Loans Payable
of Consolidated Funds |
|
Contingent
Consideration |
|
Total
|
||||||
Balance, beginning of period
|
$
|
4,303.8
|
|
|
$
|
1.0
|
|
|
$
|
4,304.8
|
|
Borrowings
|
2,015.5
|
|
|
—
|
|
|
2,015.5
|
|
|||
Paydowns
|
(1,321.0
|
)
|
|
—
|
|
|
(1,321.0
|
)
|
|||
Realized and unrealized (gains) losses, net
|
|
|
|
|
|
||||||
Included in earnings
|
(56.4
|
)
|
|
—
|
|
|
(56.4
|
)
|
|||
Included in other comprehensive income
|
(106.8
|
)
|
|
—
|
|
|
(106.8
|
)
|
|||
Balance, end of period
|
$
|
4,835.1
|
|
|
$
|
1.0
|
|
|
$
|
4,836.1
|
|
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date
|
$
|
(63.2
|
)
|
|
$
|
—
|
|
|
$
|
(63.2
|
)
|
|
Financial Liabilities
|
||||||||||||||
|
Three Months Ended June 30, 2017
|
||||||||||||||
|
Loans Payable
of Consolidated Funds |
|
Contingent
Consideration |
|
Loans Payable of a real estate VIE
|
|
Total
|
||||||||
Balance, beginning of period
|
$
|
3,587.5
|
|
|
$
|
1.5
|
|
|
$
|
77.8
|
|
|
$
|
3,666.8
|
|
Borrowings
|
1,137.5
|
|
|
—
|
|
|
—
|
|
|
1,137.5
|
|
||||
Paydowns
|
(1,117.4
|
)
|
|
(0.4
|
)
|
|
(6.9
|
)
|
|
(1,124.7
|
)
|
||||
Realized and unrealized (gains) losses, net
|
|
|
|
|
|
|
|
||||||||
Included in earnings
|
(46.4
|
)
|
|
0.1
|
|
|
(2.0
|
)
|
|
(48.3
|
)
|
||||
Included in other comprehensive income
|
160.0
|
|
|
0.1
|
|
|
3.7
|
|
|
163.8
|
|
||||
Balance, end of period
|
$
|
3,721.2
|
|
|
$
|
1.3
|
|
|
$
|
72.6
|
|
|
$
|
3,795.1
|
|
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date
|
$
|
(42.5
|
)
|
|
$
|
0.1
|
|
|
$
|
(2.0
|
)
|
|
$
|
(44.4
|
)
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Financial Liabilities
|
||||||||||||||
|
Six Months Ended June 30, 2017
|
||||||||||||||
|
Loans Payable
of Consolidated Funds |
|
Contingent
Consideration |
|
Loans Payable of a real estate VIE
|
|
Total
|
||||||||
Balance, beginning of period
|
$
|
3,866.3
|
|
|
$
|
1.5
|
|
|
$
|
79.4
|
|
|
$
|
3,947.2
|
|
Borrowings
|
1,569.0
|
|
|
—
|
|
|
—
|
|
|
1,569.0
|
|
||||
Paydowns
|
(1,879.4
|
)
|
|
(0.4
|
)
|
|
(14.3
|
)
|
|
(1,894.1
|
)
|
||||
Realized and unrealized (gains) losses, net
|
|
|
|
|
|
|
|
||||||||
Included in earnings
|
(28.3
|
)
|
|
0.1
|
|
|
3.3
|
|
|
(24.9
|
)
|
||||
Included in other comprehensive income
|
193.6
|
|
|
0.1
|
|
|
4.2
|
|
|
197.9
|
|
||||
Balance, end of period
|
$
|
3,721.2
|
|
|
$
|
1.3
|
|
|
$
|
72.6
|
|
|
$
|
3,795.1
|
|
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date
|
$
|
(25.8
|
)
|
|
$
|
0.1
|
|
|
$
|
3.3
|
|
|
$
|
(22.4
|
)
|
|
Fair Value at
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range
(Weighted Average) |
||
(Dollars in millions)
|
June 30, 2018
|
|
|
|
|||||
Assets
|
|
|
|
|
|
|
|
||
Investments of Consolidated Funds:
|
|
|
|
|
|
|
|
||
Equity securities
|
$
|
6.6
|
|
|
Discounted Cash Flow
|
|
Discount Rates
|
|
10% - 10% (10%)
|
|
4.5
|
|
|
Consensus Pricing
|
|
Indicative Quotes ($ per share)
|
|
0 - 67 (60)
|
|
|
|
|
|
|
|
|
|
||
Bonds
|
640.1
|
|
|
Consensus Pricing
|
|
Indicative Quotes (% of Par)
|
|
43 - 105 (96)
|
|
Loans
|
4,597.1
|
|
|
Consensus Pricing
|
|
Indicative Quotes (% of Par)
|
|
70 - 104 (99)
|
|
|
5,248.3
|
|
|
|
|
|
|
|
|
Investments in CLOs and other:
|
|
|
|
|
|
|
|
||
Senior secured notes
|
394.5
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Rates
|
|
1% - 13% (4%)
|
|
|
|
|
|
|
Default Rates
|
|
1% - 3% (2%)
|
||
|
|
|
|
|
Recovery Rates
|
|
50% - 73% (59%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
100 - 100 (100)
|
||
Subordinated notes and preferred shares
|
52.2
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Rates
|
|
9% - 12% (11%)
|
|
|
|
|
|
|
Default Rates
|
|
1% - 3% (2%)
|
||
|
|
|
|
|
Recovery Rates
|
|
50% - 73% (58%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
73 - 96 (81)
|
||
Total
|
$
|
5,695.0
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
||
Loans payable of Consolidated Funds:
|
|
|
|
|
|
|
|
||
Senior secured notes
|
$
|
4,608.9
|
|
|
Other
|
|
N/A
|
|
N/A
|
Subordinated notes and preferred shares
|
13.8
|
|
|
Other
|
|
N/A
|
|
N/A
|
|
|
212.4
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Rates
|
|
9% - 12% (10%)
|
|
|
|
|
|
|
Default Rates
|
|
1% - 3% (2%)
|
||
|
|
|
|
|
Recovery Rates
|
|
50% - 73% (60%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
74 - 97 (87)
|
||
Contingent consideration
|
1.0
|
|
|
Other
|
|
N/A
|
|
N/A
|
|
Total
|
$
|
4,836.1
|
|
|
|
|
|
|
|
|
Fair Value at
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range
(Weighted Average) |
||
(Dollars in millions)
|
December 31, 2017
|
|
|
|
|||||
Assets
|
|
|
|
|
|
|
|
||
Investments of Consolidated Funds:
|
|
|
|
|
|
|
|
||
Equity securities
|
$
|
5.7
|
|
|
Discounted Cash Flow
|
|
Discount Rates
|
|
10% - 10% (10%)
|
|
|
|
|
|
|
|
|
||
|
2.2
|
|
|
Consensus Pricing
|
|
Indicative Quotes ($ per share)
|
|
0 - 33 (30)
|
|
|
|
|
|
|
|
|
|
||
Bonds
|
413.4
|
|
|
Consensus Pricing
|
|
Indicative Quotes (% of Par)
|
|
44 - 107 (98)
|
|
Loans
|
4,112.7
|
|
|
Consensus Pricing
|
|
Indicative Quotes (% of Par)
|
|
64 - 103 (100)
|
|
Other
|
0.3
|
|
|
Counterparty Pricing
|
|
Indicative Quotes
(% of Notional Amount) |
|
9 - 9 (9)
|
|
|
4,534.3
|
|
|
|
|
|
|
|
|
Investments in CLOs and other
|
|
|
|
|
|
|
|
||
Senior secured notes
|
357.2
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Rate
|
|
1% - 9% (3%)
|
|
|
|
|
|
|
Default Rates
|
|
1% - 3% (2%)
|
||
|
|
|
|
|
Recovery Rates
|
|
50% - 70% (60%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
98 - 104 (101)
|
||
Subordinated notes and preferred shares
|
48.2
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Rate
|
|
8% - 11% (9%)
|
|
|
|
|
|
|
Default Rates
|
|
1% - 3% (2%)
|
||
|
|
|
|
|
Recovery Rates
|
|
50% - 70% (60%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
63 - 97 (81)
|
||
Total
|
$
|
4,939.7
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
||
Loans payable of Consolidated Funds:
|
|
|
|
|
|
|
|
||
Senior secured notes
|
$
|
4,100.5
|
|
|
Other
|
|
N/A
|
|
N/A
|
Subordinated notes and preferred shares
|
26.9
|
|
|
Other
|
|
N/A
|
|
N/A
|
|
|
176.4
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Rates
|
|
8% - 11% (10%)
|
|
|
|
|
|
|
Default Rates
|
|
1% - 3% (2%)
|
||
|
|
|
|
|
Recovery Rates
|
|
50% - 70% (60%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
79 - 93 (86)
|
||
Contingent consideration
|
1.0
|
|
|
Other
|
|
N/A
|
|
N/A
|
|
Total
|
$
|
4,304.8
|
|
|
|
|
|
|
|
|
As of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Dollars in millions)
|
||||||
Accrued performance allocations
|
$
|
3,900.3
|
|
|
$
|
3,664.3
|
|
Principal equity method investments, excluding performance allocations
|
1,300.3
|
|
|
1,218.4
|
|
||
Principal investments in CLOs and other
|
447.0
|
|
|
405.9
|
|
||
Total investments
|
$
|
5,647.6
|
|
|
$
|
5,288.6
|
|
|
As of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Dollars in millions)
|
||||||
Corporate Private Equity
|
$
|
2,342.4
|
|
|
$
|
2,272.4
|
|
Real Assets
|
749.5
|
|
|
656.7
|
|
||
Global Credit
|
62.8
|
|
|
50.6
|
|
||
Investment Solutions
|
745.6
|
|
|
684.6
|
|
||
Total
|
$
|
3,900.3
|
|
|
$
|
3,664.3
|
|
|
As of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Dollars in millions)
|
||||||
Corporate Private Equity
|
$
|
(5.0
|
)
|
|
$
|
(8.7
|
)
|
Real Assets
|
(58.2
|
)
|
|
(58.1
|
)
|
||
Total
|
$
|
(63.2
|
)
|
|
$
|
(66.8
|
)
|
|
As of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Dollars in millions)
|
||||||
Corporate Private Equity
|
$
|
377.9
|
|
|
$
|
369.5
|
|
Real Assets
|
814.6
|
|
|
775.1
|
|
||
Global Credit
|
51.9
|
|
|
23.0
|
|
||
Investment Solutions
|
55.9
|
|
|
50.8
|
|
||
Total
|
$
|
1,300.3
|
|
|
$
|
1,218.4
|
|
|
As of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Dollars in millions)
|
||||||
Investment in NGP Management
|
$
|
394.0
|
|
|
$
|
397.7
|
|
Investments in NGP general partners - accrued performance allocations
|
195.1
|
|
|
143.2
|
|
||
Principal investments in NGP funds
|
79.9
|
|
|
67.9
|
|
||
Total investments in NGP
|
$
|
669.0
|
|
|
$
|
608.8
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Management fee-related revenues from NGP Management
|
$
|
24.7
|
|
|
$
|
20.0
|
|
|
$
|
43.6
|
|
|
$
|
37.6
|
|
Performance allocations from interests in general partners of NGP funds
|
39.9
|
|
|
19.7
|
|
|
51.9
|
|
|
55.3
|
|
||||
Principal investment income from NGP funds
|
4.9
|
|
|
2.2
|
|
|
6.2
|
|
|
6.2
|
|
||||
Expenses related to the investment in NGP Management
|
(3.1
|
)
|
|
(9.6
|
)
|
|
(6.0
|
)
|
|
(35.6
|
)
|
||||
Amortization of basis differences from the investment in NGP Management
|
(1.8
|
)
|
|
(2.2
|
)
|
|
(3.6
|
)
|
|
(4.3
|
)
|
||||
Net investment income
|
$
|
64.6
|
|
|
$
|
30.1
|
|
|
$
|
92.1
|
|
|
$
|
59.2
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Performance allocations
|
$
|
425.1
|
|
|
$
|
532.5
|
|
|
$
|
733.2
|
|
|
$
|
1,208.5
|
|
Principal investment income from equity method investments (excluding performance allocations)
|
78.4
|
|
|
$
|
58.9
|
|
|
131.5
|
|
|
104.3
|
|
|||
Principal investment income (loss) from investments in CLOs and other investments
|
(0.2
|
)
|
|
0.1
|
|
|
0.8
|
|
|
1.0
|
|
||||
Total
|
$
|
503.3
|
|
|
$
|
591.5
|
|
|
$
|
865.5
|
|
|
$
|
1,313.8
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Corporate Private Equity
|
$
|
210.7
|
|
|
$
|
419.8
|
|
|
$
|
468.6
|
|
|
$
|
987.8
|
|
Real Assets
|
138.4
|
|
|
81.7
|
|
|
135.1
|
|
|
139.5
|
|
||||
Global Credit
|
12.3
|
|
|
2.5
|
|
|
14.9
|
|
|
16.9
|
|
||||
Investment Solutions
|
63.7
|
|
|
28.5
|
|
|
114.6
|
|
|
64.3
|
|
||||
Total
|
$
|
425.1
|
|
|
$
|
532.5
|
|
|
$
|
733.2
|
|
|
$
|
1,208.5
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Corporate Private Equity
|
$
|
7.8
|
|
|
$
|
22.0
|
|
|
$
|
24.0
|
|
|
$
|
29.6
|
|
Real Assets
|
72.5
|
|
|
36.6
|
|
|
105.2
|
|
|
71.6
|
|
||||
Global Credit
|
(4.0
|
)
|
|
(0.7
|
)
|
|
(3.7
|
)
|
|
0.6
|
|
||||
Investment Solutions
|
2.1
|
|
|
1.0
|
|
|
6.0
|
|
|
2.5
|
|
||||
Total
|
$
|
78.4
|
|
|
$
|
58.9
|
|
|
$
|
131.5
|
|
|
$
|
104.3
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Interest income from investments
|
$
|
52.0
|
|
|
$
|
41.8
|
|
|
$
|
98.0
|
|
|
$
|
82.3
|
|
Other income
|
1.6
|
|
|
3.2
|
|
|
2.9
|
|
|
5.6
|
|
||||
Total
|
$
|
53.6
|
|
|
$
|
45.0
|
|
|
$
|
100.9
|
|
|
$
|
87.9
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Gains (losses) from investments of Consolidated Funds
|
$
|
(26.1
|
)
|
|
$
|
(5.6
|
)
|
|
$
|
(41.5
|
)
|
|
$
|
29.6
|
|
Gains from liabilities of CLOs
|
39.0
|
|
|
46.3
|
|
|
56.4
|
|
|
28.2
|
|
||||
Total
|
$
|
12.9
|
|
|
$
|
40.7
|
|
|
$
|
14.9
|
|
|
$
|
57.8
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Realized losses
|
$
|
(1.6
|
)
|
|
$
|
(3.7
|
)
|
|
$
|
(4.3
|
)
|
|
$
|
(5.8
|
)
|
Net change in unrealized gains (losses)
|
(24.5
|
)
|
|
(1.9
|
)
|
|
(37.2
|
)
|
|
35.4
|
|
||||
Total
|
$
|
(26.1
|
)
|
|
$
|
(5.6
|
)
|
|
$
|
(41.5
|
)
|
|
$
|
29.6
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
Borrowing
Outstanding |
|
Carrying
Value |
|
Borrowing
Outstanding |
|
Carrying
Value |
||||||||
Senior Credit Facility Term Loan Due 5/05/2020
|
$
|
25.0
|
|
|
$
|
24.8
|
|
|
$
|
25.0
|
|
|
$
|
24.8
|
|
CLO Term Loans
(See below)
|
326.2
|
|
|
326.2
|
|
|
294.5
|
|
|
294.5
|
|
||||
3.875% Senior Notes Due 2/01/2023
|
500.0
|
|
|
497.9
|
|
|
500.0
|
|
|
497.6
|
|
||||
5.625% Senior Notes Due 3/30/2043
|
600.0
|
|
|
600.7
|
|
|
600.0
|
|
|
600.7
|
|
||||
Promissory Note Due 1/01/2022
|
108.8
|
|
|
108.8
|
|
|
108.8
|
|
|
108.8
|
|
||||
Promissory Notes Due 7/15/2019
|
33.5
|
|
|
33.5
|
|
|
47.2
|
|
|
47.2
|
|
||||
Total debt obligations
|
$
|
1,593.5
|
|
|
$
|
1,591.9
|
|
|
$
|
1,575.5
|
|
|
$
|
1,573.6
|
|
Formation Date
|
|
Borrowing Outstanding
June 30, 2018 |
|
|
Borrowing Outstanding
December 31, 2017 |
|
|
Maturity Date (1)
|
|
Interest Rate as of
June 30, 2018 |
|
||||
June 7, 2016
|
|
$
|
20.6
|
|
|
|
$
|
20.6
|
|
|
|
July 15, 2027
|
|
4.15%
|
(2)
|
February 28, 2017
|
|
72.1
|
|
|
|
74.3
|
|
|
|
September 21, 2029
|
|
2.33%
|
(3)
|
||
April 19, 2017
|
|
22.8
|
|
|
|
22.8
|
|
|
|
April 22, 2031
|
|
4.29%
|
(4) (15)
|
||
June 28, 2017
|
|
23.1
|
|
|
|
23.1
|
|
|
|
July 22, 2031
|
|
4.28%
|
(5) (15)
|
||
July 20, 2017
|
|
24.4
|
|
|
|
24.4
|
|
|
|
April 21, 2027
|
|
3.89%
|
(6) (15)
|
||
August 2, 2017
|
|
22.8
|
|
|
|
22.8
|
|
|
|
July 23, 2029
|
|
4.17%
|
(7) (15)
|
||
August 2, 2017
|
|
20.2
|
|
|
|
20.9
|
|
|
|
August 3, 2022
|
|
1.75%
|
(8)
|
||
August 14, 2017
|
|
22.6
|
|
|
|
22.6
|
|
|
|
August 15, 2030
|
|
4.20%
|
(9) (15)
|
||
November 30, 2017
|
|
22.7
|
|
|
|
22.7
|
|
|
|
January 16, 2030
|
|
4.08%
|
(10) (15)
|
||
December 6, 2017
|
|
19.1
|
|
|
|
19.1
|
|
|
|
October 16, 2030
|
|
3.99%
|
(11) (15)
|
||
December 7, 2017
|
|
21.2
|
|
|
|
21.2
|
|
|
|
January 19, 2029
|
|
3.72%
|
(12) (15)
|
||
January 30, 2018
|
|
19.2
|
|
|
|
—
|
|
|
|
January 22, 2030
|
|
3.98%
|
(13) (15)
|
||
March 1, 2018
|
|
15.4
|
|
|
|
—
|
|
|
|
January 15, 2031
|
|
3.90%
|
(14) (15)
|
||
|
|
$
|
326.2
|
|
|
|
$
|
294.5
|
|
|
|
|
|
|
|
(2)
|
Incurs interest at the weighted average rate of the underlying senior notes. Interest income on the underlying collateral approximated the amount of interest expense and was not significant for the
three months and six months ended June 30, 2018
and
2017
.
|
(3)
|
Original borrowing of
€61.8 million
; incurs interest at EURIBOR plus applicable margins as defined in the agreement.
|
(4)
|
Incurs interest at LIBOR plus
1.932%
.
|
(5)
|
Incurs interest at LIBOR plus
1.923%
.
|
(6)
|
Incurs interest at LIBOR plus
1.536%
.
|
(7)
|
Incurs interest at LIBOR plus
1.808%
.
|
(8)
|
Original borrowing of
€17.4 million
; incurs interest at EURIBOR plus
1.75%
and has full recourse to the Partnership.
|
(9)
|
Incurs interest at LIBOR plus
1.848%
.
|
(10)
|
Incurs interest at LIBOR plus
1.7312%
.
|
(11)
|
Incurs interest at LIBOR plus
1.647%
.
|
(12)
|
Incurs interest at LIBOR plus
1.365%
.
|
(13)
|
Incurs interest at LIBOR plus
1.624%
.
|
(14)
|
Incurs interest at LIBOR plus
1.552%
.
|
(15)
|
Term loan issued under master credit agreement.
|
|
As of June 30, 2018
|
|||||||||||||
|
Borrowing
Outstanding |
|
Fair Value
|
|
Weighted
Average Interest Rate |
|
|
|
Weighted
Average Remaining Maturity in Years |
|||||
Senior secured notes
|
$
|
4,690.3
|
|
|
$
|
4,608.9
|
|
|
2.07
|
%
|
|
|
|
11.47
|
Subordinated notes, preferred shares and other
|
192.6
|
|
|
226.2
|
|
|
N/A
|
|
|
(a)
|
|
9.47
|
||
Total
|
$
|
4,882.9
|
|
|
$
|
4,835.1
|
|
|
|
|
|
|
|
|
As of December 31, 2017
|
|||||||||||||
|
Borrowing
Outstanding |
|
Fair Value
|
|
Weighted
Average Interest Rate |
|
|
|
Weighted
Average Remaining Maturity in Years |
|||||
Senior secured notes
|
$
|
4,128.3
|
|
|
$
|
4,100.5
|
|
|
2.16
|
%
|
|
|
|
11.44
|
Subordinated notes, preferred shares and other
|
195.2
|
|
|
203.3
|
|
|
N/A
|
|
|
(a)
|
|
9.85
|
||
Total
|
$
|
4,323.5
|
|
|
$
|
4,303.8
|
|
|
|
|
|
|
|
(a)
|
The subordinated notes and preferred shares do not have contractual interest rates, but instead receive distributions from the excess cash flows of the CLOs.
|
|
As of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Dollars in millions)
|
||||||
Accrued performance allocations and incentive fee-related compensation
|
$
|
2,014.1
|
|
|
$
|
1,894.8
|
|
Accrued bonuses
|
209.2
|
|
|
202.6
|
|
||
Other
|
123.4
|
|
|
125.2
|
|
||
Total
|
$
|
2,346.7
|
|
|
$
|
2,222.6
|
|
|
Unfunded
Commitments |
||
Corporate Private Equity
|
$
|
2,606.3
|
|
Real Assets
|
830.9
|
|
|
Global Credit
|
458.7
|
|
|
Investment Solutions
|
151.0
|
|
|
Total
|
$
|
4,046.9
|
|
2018
|
$
|
24.3
|
|
2019
|
53.6
|
|
|
2020
|
50.2
|
|
|
2021
|
45.9
|
|
|
2022
|
44.4
|
|
|
Thereafter
|
352.3
|
|
|
|
$
|
570.7
|
|
|
As of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Dollars in millions)
|
||||||
Accrued incentive fees
|
$
|
6.0
|
|
|
$
|
6.3
|
|
Unbilled receivable for giveback obligations from current and former employees
|
1.1
|
|
|
5.1
|
|
||
Notes receivable and accrued interest from affiliates
|
4.6
|
|
|
22.8
|
|
||
Management fee, reimbursable expenses and other receivables from unconsolidated funds and affiliates, net
|
291.5
|
|
|
229.2
|
|
||
Total
|
$
|
303.2
|
|
|
$
|
263.4
|
|
|
As of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Dollars in millions)
|
||||||
Due to non-consolidated affiliates
|
$
|
38.7
|
|
|
$
|
75.7
|
|
Performance-based contingent cash consideration related to acquisitions
|
—
|
|
|
37.5
|
|
||
Amounts owed under the tax receivable agreement
|
95.7
|
|
|
94.0
|
|
||
Other
|
35.6
|
|
|
22.7
|
|
||
Total
|
$
|
170.0
|
|
|
$
|
229.9
|
|
|
As of
|
||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(Dollars in millions)
|
||||||
Non-Carlyle interests in Consolidated Funds
|
$
|
7.9
|
|
|
$
|
13.3
|
|
Non-Carlyle interests in majority-owned subsidiaries
|
378.3
|
|
|
386.5
|
|
||
Non-controlling interest in carried interest, giveback obligations and cash held for carried interest distributions
|
(3.9
|
)
|
|
4.9
|
|
||
Non-controlling interests in consolidated entities
|
$
|
382.3
|
|
|
$
|
404.7
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Non-Carlyle interests in Consolidated Funds
|
$
|
(4.2
|
)
|
|
$
|
—
|
|
|
$
|
(5.1
|
)
|
|
$
|
(0.1
|
)
|
Non-Carlyle interests in majority-owned subsidiaries
|
18.4
|
|
|
10.7
|
|
|
26.8
|
|
|
11.5
|
|
||||
Non-controlling interest in carried interest, giveback obligations and cash held for carried interest distributions
|
2.5
|
|
|
5.8
|
|
|
6.0
|
|
|
8.4
|
|
||||
Non-controlling interests in income of consolidated entities
|
$
|
16.7
|
|
|
$
|
16.5
|
|
|
$
|
27.7
|
|
|
$
|
19.8
|
|
|
Three Months Ended
June 30, 2018 |
|
Six Months Ended
June 30, 2018 |
||||||||||||
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
||||||||
Net income attributable to common units
|
$
|
63,500,000
|
|
|
$
|
63,500,000
|
|
|
$
|
97,300,000
|
|
|
$
|
97,300,000
|
|
Weighted-average common units outstanding
|
102,465,109
|
|
|
112,582,728
|
|
|
101,603,587
|
|
|
111,948,144
|
|
||||
Net income per common unit
|
$
|
0.62
|
|
|
$
|
0.56
|
|
|
$
|
0.96
|
|
|
$
|
0.87
|
|
|
Three Months Ended
June 30, 2017 |
|
Six Months Ended
June 30, 2017 |
||||||||||||
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
||||||||
Net income attributable to common units
|
$
|
57,600,000
|
|
|
$
|
57,600,000
|
|
|
$
|
140,600,000
|
|
|
$
|
140,600,000
|
|
Weighted-average common units outstanding
|
88,801,343
|
|
|
96,986,255
|
|
|
87,079,007
|
|
|
94,486,422
|
|
||||
Net income per common unit
|
$
|
0.65
|
|
|
$
|
0.59
|
|
|
$
|
1.61
|
|
|
$
|
1.49
|
|
|
Three Months Ended
June 30, 2018 |
|
Six Months Ended
June 30, 2018 |
||||||||
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
||||
The Carlyle Group L.P. weighted-average common units outstanding
|
102,465,109
|
|
|
102,465,109
|
|
|
101,603,587
|
|
|
101,603,587
|
|
Unvested deferred restricted common units
|
—
|
|
|
9,717,091
|
|
|
—
|
|
|
9,944,029
|
|
Issuable Carlyle Group L.P. common units
|
—
|
|
|
400,528
|
|
|
—
|
|
|
400,528
|
|
Weighted-average common units outstanding
|
102,465,109
|
|
|
112,582,728
|
|
|
101,603,587
|
|
|
111,948,144
|
|
|
Carlyle Holdings
|
|
The Carlyle Group L.P.
|
|||||||||||||||||
|
|
|
|
|
Equity Settled Awards
|
|||||||||||||||
Unvested Units
|
Partnership
Units |
|
Weighted-
Average Grant Date Fair Value |
|
Deferred
Restricted Common Units |
|
Weighted-
Average Grant Date Fair Value |
|
Unvested
Common Units |
|
Weighted-
Average Grant Date Fair Value |
|||||||||
Balance, December 31, 2017
|
8,095,015
|
|
|
$
|
22.03
|
|
|
15,519,591
|
|
|
$
|
16.25
|
|
|
7,782
|
|
|
$
|
22.22
|
|
Granted
|
—
|
|
|
$
|
—
|
|
|
11,844,685
|
|
|
$
|
20.78
|
|
|
—
|
|
|
$
|
—
|
|
Vested
|
8,066,499
|
|
|
$
|
22.00
|
|
|
2,610,702
|
|
|
$
|
21.23
|
|
|
7,782
|
|
|
$
|
22.22
|
|
Forfeited
|
—
|
|
|
$
|
—
|
|
|
388,137
|
|
|
$
|
15.82
|
|
|
—
|
|
|
$
|
—
|
|
Balance, June 30, 2018
|
28,516
|
|
|
$
|
29.13
|
|
|
24,365,437
|
|
|
$
|
17.92
|
|
|
—
|
|
|
$
|
—
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
Corporate
Private Equity |
|
Real
Assets |
|
Global
Credit |
|
Investment Solutions
|
|
Total
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||
Segment Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund level fee revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund management fees
|
$
|
148.0
|
|
|
$
|
78.7
|
|
|
$
|
59.8
|
|
|
$
|
41.6
|
|
|
$
|
328.1
|
|
Portfolio advisory fees, net
|
2.8
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|||||
Transaction fees, net
|
3.6
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
3.8
|
|
|||||
Total fund level fee revenues
|
154.4
|
|
|
79.2
|
|
|
59.9
|
|
|
41.6
|
|
|
335.1
|
|
|||||
Performance revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
52.0
|
|
|
33.6
|
|
|
4.7
|
|
|
9.2
|
|
|
99.5
|
|
|||||
Unrealized
|
163.8
|
|
|
143.0
|
|
|
8.8
|
|
|
54.4
|
|
|
370.0
|
|
|||||
Total performance revenues
|
215.8
|
|
|
176.6
|
|
|
13.5
|
|
|
63.6
|
|
|
469.5
|
|
|||||
Principal investment income (loss)
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
12.3
|
|
|
3.1
|
|
|
2.4
|
|
|
(0.1
|
)
|
|
17.7
|
|
|||||
Unrealized
|
(4.9
|
)
|
|
11.9
|
|
|
(1.7
|
)
|
|
2.3
|
|
|
7.6
|
|
|||||
Total principal investment income (loss)
|
7.4
|
|
|
15.0
|
|
|
0.7
|
|
|
2.2
|
|
|
25.3
|
|
|||||
Interest income
|
2.5
|
|
|
1.2
|
|
|
3.9
|
|
|
0.3
|
|
|
7.9
|
|
|||||
Other income
|
0.6
|
|
|
0.7
|
|
|
1.0
|
|
|
0.1
|
|
|
2.4
|
|
|||||
Total revenues
|
380.7
|
|
|
272.7
|
|
|
79.0
|
|
|
107.8
|
|
|
840.2
|
|
|||||
Segment Expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash-based compensation and benefits
|
90.5
|
|
|
29.3
|
|
|
30.5
|
|
|
22.0
|
|
|
172.3
|
|
|||||
Equity-based compensation
|
23.0
|
|
|
15.9
|
|
|
7.1
|
|
|
4.0
|
|
|
50.0
|
|
|||||
Performance revenues related compensation
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
24.0
|
|
|
15.0
|
|
|
2.1
|
|
|
8.8
|
|
|
49.9
|
|
|||||
Unrealized
|
75.0
|
|
|
46.8
|
|
|
3.9
|
|
|
44.3
|
|
|
170.0
|
|
|||||
Total compensation and benefits
|
212.5
|
|
|
107.0
|
|
|
43.6
|
|
|
79.1
|
|
|
442.2
|
|
|||||
General, administrative, and other indirect expenses
|
56.5
|
|
|
15.9
|
|
|
17.3
|
|
|
9.2
|
|
|
98.9
|
|
|||||
Depreciation and amortization expense
|
4.2
|
|
|
1.6
|
|
|
1.6
|
|
|
1.1
|
|
|
8.5
|
|
|||||
Interest expense
|
7.1
|
|
|
4.1
|
|
|
5.8
|
|
|
1.5
|
|
|
18.5
|
|
|||||
Total expenses
|
280.3
|
|
|
128.6
|
|
|
68.3
|
|
|
90.9
|
|
|
568.1
|
|
|||||
Economic Income
|
$
|
100.4
|
|
|
$
|
144.1
|
|
|
$
|
10.7
|
|
|
$
|
16.9
|
|
|
$
|
272.1
|
|
(-) Net Performance Revenues
|
116.8
|
|
|
114.8
|
|
|
7.5
|
|
|
10.5
|
|
|
249.6
|
|
|||||
(-) Principal Investment Income
|
7.4
|
|
|
15.0
|
|
|
0.7
|
|
|
2.2
|
|
|
25.3
|
|
|||||
(+) Equity-based Compensation
|
23.0
|
|
|
15.9
|
|
|
7.1
|
|
|
4.0
|
|
|
50.0
|
|
|||||
(+) Net Interest
|
4.6
|
|
|
2.9
|
|
|
1.9
|
|
|
1.2
|
|
|
10.6
|
|
|||||
(=) Fee Related Earnings
|
$
|
3.8
|
|
|
$
|
33.1
|
|
|
$
|
11.5
|
|
|
$
|
9.4
|
|
|
$
|
57.8
|
|
(+) Realized Net Performance Revenues
|
28.0
|
|
|
18.6
|
|
|
2.6
|
|
|
0.4
|
|
|
49.6
|
|
|||||
(+) Realized Principal Investment Income (Loss)
|
12.3
|
|
|
3.1
|
|
|
2.4
|
|
|
(0.1
|
)
|
|
17.7
|
|
|||||
(+) Net Interest
|
(4.6
|
)
|
|
(2.9
|
)
|
|
(1.9
|
)
|
|
(1.2
|
)
|
|
(10.6
|
)
|
|||||
(=) Distributable Earnings
|
$
|
39.5
|
|
|
$
|
51.9
|
|
|
$
|
14.6
|
|
|
$
|
8.5
|
|
|
$
|
114.5
|
|
|
June 30, 2018 and the Six Months Then Ended
|
||||||||||||||||||
|
Corporate
Private Equity |
|
Real
Assets |
|
Global
Credit |
|
Investment Solutions
|
|
Total
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||
Segment Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund level fee revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund management fees
|
$
|
262.1
|
|
|
$
|
153.1
|
|
|
$
|
118.5
|
|
|
$
|
81.9
|
|
|
$
|
615.6
|
|
Portfolio advisory fees, net
|
6.0
|
|
|
0.7
|
|
|
0.1
|
|
|
—
|
|
|
6.8
|
|
|||||
Transaction fees, net
|
3.9
|
|
|
2.8
|
|
|
0.1
|
|
|
—
|
|
|
6.8
|
|
|||||
Total fund level fee revenues
|
272.0
|
|
|
156.6
|
|
|
118.7
|
|
|
81.9
|
|
|
629.2
|
|
|||||
Performance revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
240.0
|
|
|
41.4
|
|
|
5.8
|
|
|
23.3
|
|
|
310.5
|
|
|||||
Unrealized
|
228.4
|
|
|
145.4
|
|
|
11.4
|
|
|
91.2
|
|
|
476.4
|
|
|||||
Total performance revenues
|
468.4
|
|
|
186.8
|
|
|
17.2
|
|
|
114.5
|
|
|
786.9
|
|
|||||
Principal investment income (loss)
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
20.2
|
|
|
11.3
|
|
|
4.9
|
|
|
—
|
|
|
36.4
|
|
|||||
Unrealized
|
2.1
|
|
|
12.8
|
|
|
0.3
|
|
|
3.3
|
|
|
18.5
|
|
|||||
Total principal investment income (loss)
|
22.3
|
|
|
24.1
|
|
|
5.2
|
|
|
3.3
|
|
|
54.9
|
|
|||||
Interest income
|
4.5
|
|
|
2.1
|
|
|
7.2
|
|
|
0.8
|
|
|
14.6
|
|
|||||
Other income
|
3.7
|
|
|
1.9
|
|
|
2.6
|
|
|
0.3
|
|
|
8.5
|
|
|||||
Total revenues
|
770.9
|
|
|
371.5
|
|
|
150.9
|
|
|
200.8
|
|
|
1,494.1
|
|
|||||
Segment Expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash-based compensation and benefits
|
187.7
|
|
|
64.0
|
|
|
64.5
|
|
|
45.2
|
|
|
361.4
|
|
|||||
Equity-based compensation
|
41.7
|
|
|
26.0
|
|
|
13.0
|
|
|
7.0
|
|
|
87.7
|
|
|||||
Performance revenues related compensation
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
114.7
|
|
|
19.0
|
|
|
2.7
|
|
|
21.4
|
|
|
157.8
|
|
|||||
Unrealized
|
101.1
|
|
|
41.9
|
|
|
5.1
|
|
|
71.4
|
|
|
219.5
|
|
|||||
Total compensation and benefits
|
445.2
|
|
|
150.9
|
|
|
85.3
|
|
|
145.0
|
|
|
826.4
|
|
|||||
General, administrative, and other indirect expenses
|
89.4
|
|
|
34.0
|
|
|
33.1
|
|
|
17.2
|
|
|
173.7
|
|
|||||
Depreciation and amortization expense
|
8.2
|
|
|
3.2
|
|
|
3.0
|
|
|
2.2
|
|
|
16.6
|
|
|||||
Interest expense
|
14.1
|
|
|
8.0
|
|
|
11.1
|
|
|
3.1
|
|
|
36.3
|
|
|||||
Total expenses
|
556.9
|
|
|
196.1
|
|
|
132.5
|
|
|
167.5
|
|
|
1,053.0
|
|
|||||
Economic Income
|
$
|
214.0
|
|
|
$
|
175.4
|
|
|
$
|
18.4
|
|
|
$
|
33.3
|
|
|
$
|
441.1
|
|
(-) Net Performance Revenues
|
252.6
|
|
|
125.9
|
|
|
9.4
|
|
|
21.7
|
|
|
409.6
|
|
|||||
(-) Principal Investment Income
|
22.3
|
|
|
24.1
|
|
|
5.2
|
|
|
3.3
|
|
|
54.9
|
|
|||||
(+) Equity-based Compensation
|
41.7
|
|
|
26.0
|
|
|
13.0
|
|
|
7.0
|
|
|
87.7
|
|
|||||
(+) Net Interest
|
9.6
|
|
|
5.9
|
|
|
3.9
|
|
|
2.3
|
|
|
21.7
|
|
|||||
(=) Fee Related Earnings
|
$
|
(9.6
|
)
|
|
$
|
57.3
|
|
|
$
|
20.7
|
|
|
$
|
17.6
|
|
|
$
|
86.0
|
|
(+) Realized Net Performance Revenues
|
125.3
|
|
|
22.4
|
|
|
3.1
|
|
|
1.9
|
|
|
152.7
|
|
|||||
(+) Realized Principal Investment Income
|
20.2
|
|
|
11.3
|
|
|
4.9
|
|
|
—
|
|
|
36.4
|
|
|||||
(+) Net Interest
|
(9.6
|
)
|
|
(5.9
|
)
|
|
(3.9
|
)
|
|
(2.3
|
)
|
|
(21.7
|
)
|
|||||
(=) Distributable Earnings
|
$
|
126.3
|
|
|
$
|
85.1
|
|
|
$
|
24.8
|
|
|
$
|
17.2
|
|
|
$
|
253.4
|
|
Segment assets as of June 30, 2018
|
$
|
3,644.8
|
|
|
$
|
1,985.6
|
|
|
$
|
1,084.2
|
|
|
$
|
1,074.9
|
|
|
$
|
7,789.5
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||
|
Corporate
Private Equity |
|
Real
Assets |
|
Global
Credit |
|
Investment Solutions
|
|
Total
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||
Segment Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund level fee revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund management fees
|
$
|
117.7
|
|
|
$
|
58.2
|
|
|
$
|
45.1
|
|
|
$
|
36.2
|
|
|
$
|
257.2
|
|
Portfolio advisory fees, net
|
4.5
|
|
|
0.1
|
|
|
0.3
|
|
|
—
|
|
|
4.9
|
|
|||||
Transaction fees, net
|
1.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|||||
Total fund level fee revenues
|
123.4
|
|
|
58.3
|
|
|
45.4
|
|
|
36.2
|
|
|
263.3
|
|
|||||
Performance revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
272.1
|
|
|
39.7
|
|
|
17.2
|
|
|
23.7
|
|
|
352.7
|
|
|||||
Unrealized
|
142.9
|
|
|
60.6
|
|
|
(1.6
|
)
|
|
4.7
|
|
|
206.6
|
|
|||||
Total performance revenues
|
415.0
|
|
|
100.3
|
|
|
15.6
|
|
|
28.4
|
|
|
559.3
|
|
|||||
Principal investment income (loss)
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
8.9
|
|
|
0.3
|
|
|
1.5
|
|
|
(0.1
|
)
|
|
10.6
|
|
|||||
Unrealized
|
13.3
|
|
|
6.8
|
|
|
0.1
|
|
|
0.4
|
|
|
20.6
|
|
|||||
Total principal investment income (loss)
|
22.2
|
|
|
7.1
|
|
|
1.6
|
|
|
0.3
|
|
|
31.2
|
|
|||||
Interest income
|
0.8
|
|
|
0.4
|
|
|
1.0
|
|
|
0.2
|
|
|
2.4
|
|
|||||
Other income
|
1.3
|
|
|
0.3
|
|
|
1.1
|
|
|
0.1
|
|
|
2.8
|
|
|||||
Total revenues
|
562.7
|
|
|
166.4
|
|
|
64.7
|
|
|
65.2
|
|
|
859.0
|
|
|||||
Segment Expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash-based compensation and benefits
|
72.7
|
|
|
37.3
|
|
|
22.8
|
|
|
20.2
|
|
|
153.0
|
|
|||||
Equity-based compensation
|
17.8
|
|
|
9.3
|
|
|
7.5
|
|
|
2.1
|
|
|
36.7
|
|
|||||
Performance revenues related compensation
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
121.6
|
|
|
17.4
|
|
|
8.2
|
|
|
23.4
|
|
|
170.6
|
|
|||||
Unrealized
|
69.4
|
|
|
19.2
|
|
|
(0.7
|
)
|
|
1.4
|
|
|
89.3
|
|
|||||
Total compensation and benefits
|
281.5
|
|
|
83.2
|
|
|
37.8
|
|
|
47.1
|
|
|
449.6
|
|
|||||
General, administrative, and other indirect expenses
|
28.4
|
|
|
26.5
|
|
|
21.8
|
|
|
8.7
|
|
|
85.4
|
|
|||||
Depreciation and amortization expense
|
3.7
|
|
|
1.6
|
|
|
1.3
|
|
|
0.9
|
|
|
7.5
|
|
|||||
Interest expense
|
7.3
|
|
|
4.4
|
|
|
3.2
|
|
|
1.5
|
|
|
16.4
|
|
|||||
Total expenses
|
320.9
|
|
|
115.7
|
|
|
64.1
|
|
|
58.2
|
|
|
558.9
|
|
|||||
Economic Net Income
|
$
|
241.8
|
|
|
$
|
50.7
|
|
|
$
|
0.6
|
|
|
$
|
7.0
|
|
|
$
|
300.1
|
|
(-) Net Performance Revenues
|
224.0
|
|
|
63.7
|
|
|
8.1
|
|
|
3.6
|
|
|
299.4
|
|
|||||
(-) Principal Investment Income
|
22.2
|
|
|
7.1
|
|
|
1.6
|
|
|
0.3
|
|
|
31.2
|
|
|||||
(+) Equity-based Compensation
|
17.8
|
|
|
9.3
|
|
|
7.5
|
|
|
2.1
|
|
|
36.7
|
|
|||||
(+) Net Interest
|
6.5
|
|
|
4.0
|
|
|
2.2
|
|
|
1.3
|
|
|
14.0
|
|
|||||
(=) Fee Related Earnings
|
$
|
19.9
|
|
|
$
|
(6.8
|
)
|
|
$
|
0.6
|
|
|
$
|
6.5
|
|
|
$
|
20.2
|
|
(+) Realized Net Performance Revenues
|
150.5
|
|
|
22.3
|
|
|
9.0
|
|
|
0.3
|
|
|
182.1
|
|
|||||
(+) Realized Principal Investment Income (Loss)
|
8.9
|
|
|
0.3
|
|
|
1.5
|
|
|
(0.1
|
)
|
|
10.6
|
|
|||||
(+) Net Interest
|
(6.5
|
)
|
|
(4.0
|
)
|
|
(2.2
|
)
|
|
(1.3
|
)
|
|
(14.0
|
)
|
|||||
(=) Distributable Earnings
|
$
|
172.8
|
|
|
$
|
11.8
|
|
|
$
|
8.9
|
|
|
$
|
5.4
|
|
|
$
|
198.9
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||
|
Corporate
Private Equity |
|
Real
Assets |
|
Global
Credit |
|
Investment Solutions
|
|
Total
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||
Segment Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund level fee revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund management fees
|
$
|
233.4
|
|
|
$
|
114.2
|
|
|
$
|
93.2
|
|
|
$
|
72.0
|
|
|
$
|
512.8
|
|
Portfolio advisory fees, net
|
8.3
|
|
|
0.2
|
|
|
0.4
|
|
|
—
|
|
|
8.9
|
|
|||||
Transaction fees, net
|
8.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.9
|
|
|||||
Total fund level fee revenues
|
250.6
|
|
|
114.4
|
|
|
93.6
|
|
|
72.0
|
|
|
530.6
|
|
|||||
Performance revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
323.4
|
|
|
53.2
|
|
|
22.8
|
|
|
36.3
|
|
|
435.7
|
|
|||||
Unrealized
|
658.2
|
|
|
139.3
|
|
|
12.9
|
|
|
27.9
|
|
|
838.3
|
|
|||||
Total performance revenues
|
981.6
|
|
|
192.5
|
|
|
35.7
|
|
|
64.2
|
|
|
1,274.0
|
|
|||||
Principal investment income (loss)
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
9.1
|
|
|
(7.8
|
)
|
|
3.9
|
|
|
—
|
|
|
5.2
|
|
|||||
Unrealized
|
18.8
|
|
|
12.0
|
|
|
4.3
|
|
|
1.5
|
|
|
36.6
|
|
|||||
Total principal investment income (loss)
|
27.9
|
|
|
4.2
|
|
|
8.2
|
|
|
1.5
|
|
|
41.8
|
|
|||||
Interest income
|
1.9
|
|
|
1.0
|
|
|
2.6
|
|
|
0.3
|
|
|
5.8
|
|
|||||
Other income
|
2.6
|
|
|
0.7
|
|
|
4.5
|
|
|
0.2
|
|
|
8.0
|
|
|||||
Total revenues
|
1,264.6
|
|
|
312.8
|
|
|
144.6
|
|
|
138.2
|
|
|
1,860.2
|
|
|||||
Segment Expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash-based compensation and benefits
|
146.8
|
|
|
67.9
|
|
|
46.5
|
|
|
39.1
|
|
|
300.3
|
|
|||||
Equity-based compensation
|
32.8
|
|
|
18.1
|
|
|
11.8
|
|
|
4.1
|
|
|
66.8
|
|
|||||
Performance revenues related compensation
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized
|
147.7
|
|
|
24.2
|
|
|
10.9
|
|
|
35.5
|
|
|
218.3
|
|
|||||
Unrealized
|
297.2
|
|
|
38.5
|
|
|
6.1
|
|
|
20.4
|
|
|
362.2
|
|
|||||
Total compensation and benefits
|
624.5
|
|
|
148.7
|
|
|
75.3
|
|
|
99.1
|
|
|
947.6
|
|
|||||
General, administrative, and other indirect expenses
|
63.4
|
|
|
42.1
|
|
|
45.0
|
|
|
15.5
|
|
|
166.0
|
|
|||||
Depreciation and amortization expense
|
7.4
|
|
|
3.4
|
|
|
2.5
|
|
|
1.7
|
|
|
15.0
|
|
|||||
Interest expense
|
14.1
|
|
|
8.5
|
|
|
5.8
|
|
|
3.0
|
|
|
31.4
|
|
|||||
Total expenses
|
709.4
|
|
|
202.7
|
|
|
128.6
|
|
|
119.3
|
|
|
1,160.0
|
|
|||||
Economic Income
|
$
|
555.2
|
|
|
$
|
110.1
|
|
|
$
|
16.0
|
|
|
$
|
18.9
|
|
|
$
|
700.2
|
|
(-) Net Performance Revenues
|
536.7
|
|
|
129.8
|
|
|
18.7
|
|
|
8.3
|
|
|
693.5
|
|
|||||
(-) Principal Investment Income
|
27.9
|
|
|
4.2
|
|
|
8.2
|
|
|
1.5
|
|
|
41.8
|
|
|||||
(+) Equity-based Compensation
|
32.8
|
|
|
18.1
|
|
|
11.8
|
|
|
4.1
|
|
|
66.8
|
|
|||||
(+) Net Interest
|
12.2
|
|
|
7.5
|
|
|
3.2
|
|
|
2.7
|
|
|
25.6
|
|
|||||
(=) Fee Related Earnings
|
$
|
35.6
|
|
|
$
|
1.7
|
|
|
$
|
4.1
|
|
|
$
|
15.9
|
|
|
$
|
57.3
|
|
(+) Realized Net Performance Revenues
|
175.7
|
|
|
29.0
|
|
|
11.9
|
|
|
0.8
|
|
|
217.4
|
|
|||||
(+) Realized Principal Investment Income (Loss)
|
9.1
|
|
|
(7.8
|
)
|
|
3.9
|
|
|
—
|
|
|
5.2
|
|
|||||
(+) Net Interest
|
(12.2
|
)
|
|
(7.5
|
)
|
|
(3.2
|
)
|
|
(2.7
|
)
|
|
(25.6
|
)
|
|||||
(=) Distributable Earnings
|
$
|
208.2
|
|
|
$
|
15.4
|
|
|
$
|
16.7
|
|
|
$
|
14.0
|
|
|
$
|
254.3
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||
|
Total Reportable Segments
|
|
Consolidated Funds
|
|
Reconciling Items
|
|
|
|
Carlyle Consolidated
|
||||||||
|
|
|
|
|
|||||||||||||
|
(Dollars in millions)
|
||||||||||||||||
Revenues
|
$
|
840.2
|
|
|
$
|
53.6
|
|
|
$
|
(0.2
|
)
|
|
(a)
|
|
$
|
893.6
|
|
Expenses
|
$
|
568.1
|
|
|
$
|
62.0
|
|
|
$
|
23.6
|
|
|
(b)
|
|
$
|
653.7
|
|
Other income
|
$
|
—
|
|
|
$
|
12.9
|
|
|
$
|
—
|
|
|
(c)
|
|
$
|
12.9
|
|
Economic income
|
$
|
272.1
|
|
|
$
|
4.5
|
|
|
$
|
(23.8
|
)
|
|
(d)
|
|
$
|
252.8
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||
|
Total Reportable Segments
|
|
Consolidated Funds
|
|
Reconciling Items
|
|
|
|
Carlyle Consolidated
|
||||||||
|
|
|
|
|
|
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||
Revenues
|
$
|
859.0
|
|
|
$
|
45.0
|
|
|
$
|
4.4
|
|
|
(a)
|
|
$
|
908.4
|
|
Expenses
|
$
|
558.9
|
|
|
$
|
91.9
|
|
|
$
|
54.6
|
|
|
(b)
|
|
$
|
705.4
|
|
Other income
|
$
|
—
|
|
|
$
|
40.7
|
|
|
$
|
—
|
|
|
(c)
|
|
$
|
40.7
|
|
Economic income (loss)
|
$
|
300.1
|
|
|
$
|
(6.2
|
)
|
|
$
|
(50.2
|
)
|
|
(d)
|
|
$
|
243.7
|
|
|
June 30, 2018 and the Six Months Then Ended
|
||||||||||||||||
|
Total Reportable Segments
|
|
Consolidated Funds
|
|
Reconciling Items
|
|
|
|
Carlyle Consolidated
|
||||||||
|
|
|
|
|
|||||||||||||
|
(Dollars in millions)
|
||||||||||||||||
Revenues
|
$
|
1,494.1
|
|
|
$
|
100.9
|
|
|
$
|
1.4
|
|
|
(a)
|
|
$
|
1,596.4
|
|
Expenses
|
$
|
1,053.0
|
|
|
$
|
106.3
|
|
|
$
|
73.7
|
|
|
(b)
|
|
$
|
1,233.0
|
|
Other income
|
$
|
—
|
|
|
$
|
14.9
|
|
|
$
|
—
|
|
|
(c)
|
|
$
|
14.9
|
|
Economic income
|
$
|
441.1
|
|
|
$
|
9.5
|
|
|
$
|
(72.3
|
)
|
|
(d)
|
|
$
|
378.3
|
|
Total assets
|
$
|
7,789.5
|
|
|
$
|
5,761.1
|
|
|
$
|
(256.2
|
)
|
|
(e)
|
|
$
|
13,294.4
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||
|
Total Reportable Segments
|
|
Consolidated Funds
|
|
Reconciling Items
|
|
|
|
Carlyle Consolidated
|
||||||||
|
|
|
|
|
|
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||
Revenues
|
$
|
1,860.2
|
|
|
$
|
87.9
|
|
|
$
|
80.4
|
|
|
(a)
|
|
$
|
2,028.5
|
|
Expenses
|
$
|
1,160.0
|
|
|
$
|
144.9
|
|
|
$
|
210.0
|
|
|
(b)
|
|
$
|
1,514.9
|
|
Other income
|
$
|
—
|
|
|
$
|
57.8
|
|
|
$
|
—
|
|
|
(c)
|
|
$
|
57.8
|
|
Economic income
|
$
|
700.2
|
|
|
$
|
0.8
|
|
|
$
|
(129.6
|
)
|
|
(d)
|
|
$
|
571.4
|
|
(a)
|
The Revenues adjustment principally represents fund management fees and performance revenues earned from the Consolidated Funds which were eliminated in consolidation to arrive at the Partnership’s total revenues, adjustments for amounts attributable to non-controlling interests in consolidated entities, adjustments related to expenses associated with the investments in NGP Management and its affiliates that are included in operating captions or are excluded from the segment results, adjustments to reflect the reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, adjustments to reflect the Partnership’s share of Urbplan’s net losses as a component of investment income
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Total Reportable Segments - Fund level fee revenues
|
$
|
335.1
|
|
|
$
|
263.3
|
|
|
$
|
629.2
|
|
|
$
|
530.6
|
|
Adjustments
(1)
|
(33.8
|
)
|
|
(24.5
|
)
|
|
(63.4
|
)
|
|
(45.5
|
)
|
||||
Carlyle Consolidated - Fund management fees
|
$
|
301.3
|
|
|
$
|
238.8
|
|
|
$
|
565.8
|
|
|
$
|
485.1
|
|
(b)
|
The Expenses adjustment represents the elimination of intercompany expenses of the Consolidated Funds payable to the Partnership, the inclusion of certain tax expenses associated with performance revenues related compensation, adjustments related to expenses associated with the investment in NGP Management that are included in operating captions, adjustments to reflect the reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, adjustments to reflect the Partnership’s share of Urbplan’s net losses as a component of investment income until Urbplan was deconsolidated during 2017, changes in the tax receivable agreement liability, charges and credits associated with Carlyle corporate actions and non-recurring items and adjustments to reflect the Partnership’s economic interests in Claren Road
(through January 2017)
, as detailed below (Dollars in millions):
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments
|
$
|
18.4
|
|
|
$
|
58.5
|
|
|
$
|
68.5
|
|
|
$
|
125.5
|
|
Acquisition related charges and amortization of intangibles and impairment
|
9.2
|
|
|
9.2
|
|
|
13.8
|
|
|
18.0
|
|
||||
Other non-operating expense
|
0.3
|
|
|
0.1
|
|
|
0.6
|
|
|
0.1
|
|
||||
Tax (expense) benefit associated with performance revenues
|
3.8
|
|
|
(2.4
|
)
|
|
1.7
|
|
|
(5.3
|
)
|
||||
Non-Carlyle economic interests in acquired businesses and other adjustments to present certain costs on a net basis
|
4.3
|
|
|
(4.9
|
)
|
|
8.3
|
|
|
82.6
|
|
||||
Severance and other adjustments
|
4.3
|
|
|
7.5
|
|
|
5.9
|
|
|
10.3
|
|
||||
Elimination of expenses of Consolidated Funds
|
(16.7
|
)
|
|
(13.4
|
)
|
|
(25.1
|
)
|
|
(21.2
|
)
|
||||
|
$
|
23.6
|
|
|
$
|
54.6
|
|
|
$
|
73.7
|
|
|
$
|
210.0
|
|
(c)
|
The Other Income (Loss) adjustment results from the Consolidated Funds which were eliminated in consolidation to arrive at the Partnership’s total Other Income (Loss).
|
(d)
|
The following table is a reconciliation of Income Before Provision for Income Taxes to Economic Income, to Fee Related Earnings, and to Distributable Earnings (Dollars in millions):
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Income before provision for income taxes
|
$
|
252.8
|
|
|
$
|
243.7
|
|
|
$
|
378.3
|
|
|
$
|
571.4
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments
|
18.4
|
|
|
58.5
|
|
|
68.5
|
|
|
125.5
|
|
||||
Acquisition related charges, including amortization of intangibles and impairment
|
9.2
|
|
|
9.2
|
|
|
13.8
|
|
|
18.0
|
|
||||
Other non-operating expense
|
0.3
|
|
|
0.1
|
|
|
0.6
|
|
|
0.1
|
|
||||
Tax (expense) benefit associated with performance revenues
|
3.8
|
|
|
(2.4
|
)
|
|
1.7
|
|
|
(5.3
|
)
|
||||
Net (income) loss attributable to non-controlling interests in consolidated entities
|
(16.7
|
)
|
|
(16.5
|
)
|
|
(27.7
|
)
|
|
(19.8
|
)
|
||||
Severance and other adjustments
|
4.3
|
|
|
7.5
|
|
|
5.9
|
|
|
10.3
|
|
||||
Economic Income
|
$
|
272.1
|
|
|
$
|
300.1
|
|
|
$
|
441.1
|
|
|
$
|
700.2
|
|
Net performance revenues
(1)
|
249.6
|
|
|
299.4
|
|
|
409.6
|
|
|
693.5
|
|
||||
Principal investment income
(1)
|
25.3
|
|
|
31.2
|
|
|
54.9
|
|
|
41.8
|
|
||||
Equity-based compensation
|
50.0
|
|
|
36.7
|
|
|
87.7
|
|
|
66.8
|
|
||||
Net interest
|
10.6
|
|
|
14.0
|
|
|
21.7
|
|
|
25.6
|
|
||||
Fee Related Earnings
|
$
|
57.8
|
|
|
$
|
20.2
|
|
|
$
|
86.0
|
|
|
$
|
57.3
|
|
Realized performance revenues, net of related compensation
|
49.6
|
|
|
182.1
|
|
|
152.7
|
|
|
217.4
|
|
||||
Realized principal investment income (loss)
(1)
|
17.7
|
|
|
10.6
|
|
|
36.4
|
|
|
5.2
|
|
||||
Net interest
|
(10.6
|
)
|
|
(14.0
|
)
|
|
(21.7
|
)
|
|
(25.6
|
)
|
||||
Distributable Earnings
|
$
|
114.5
|
|
|
$
|
198.9
|
|
|
$
|
253.4
|
|
|
$
|
254.3
|
|
|
Three Months Ended June 30, 2018
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments
(2)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
(a)
|
|
|
|
|
|
||||||
Realized
|
$
|
97.4
|
|
|
$
|
2.1
|
|
|
$
|
99.5
|
|
Unrealized
|
327.7
|
|
|
42.3
|
|
|
370.0
|
|
|||
Total performance revenues
(a)
|
425.1
|
|
|
44.4
|
|
|
469.5
|
|
|||
Performance revenues related compensation expense
(b)
|
|
|
|
|
|
||||||
Realized
|
51.7
|
|
|
(1.8
|
)
|
|
49.9
|
|
|||
Unrealized
|
170.3
|
|
|
(0.3
|
)
|
|
170.0
|
|
|||
Total performance revenues related compensation expense
(b)
|
222.0
|
|
|
(2.1
|
)
|
|
219.9
|
|
|||
Net performance revenues
|
|
|
|
|
|
||||||
Realized
|
45.7
|
|
|
3.9
|
|
|
49.6
|
|
|||
Unrealized
|
157.4
|
|
|
42.6
|
|
|
200.0
|
|
|||
Total net performance revenues
|
$
|
203.1
|
|
|
$
|
46.5
|
|
|
$
|
249.6
|
|
Principal investment income (loss)
|
|
|
|
|
|
||||||
Realized
|
$
|
36.3
|
|
|
$
|
(18.6
|
)
|
|
$
|
17.7
|
|
Unrealized
|
41.9
|
|
|
(34.3
|
)
|
|
7.6
|
|
|||
Total principal investment income (loss)
|
$
|
78.2
|
|
|
$
|
(52.9
|
)
|
|
$
|
25.3
|
|
|
Three Months Ended June 30, 2017
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments
(2)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
(a)
|
|
|
|
|
|
||||||
Realized
|
$
|
346.6
|
|
|
$
|
6.1
|
|
|
$
|
352.7
|
|
Unrealized
|
185.9
|
|
|
20.7
|
|
|
206.6
|
|
|||
Total performance revenues
(a)
|
532.5
|
|
|
26.8
|
|
|
559.3
|
|
|||
Performance revenues related compensation expense
(b)
|
|
|
|
|
|
||||||
Realized
|
166.7
|
|
|
3.9
|
|
|
170.6
|
|
|||
Unrealized
|
90.4
|
|
|
(1.1
|
)
|
|
89.3
|
|
|||
Total performance revenues related compensation expense
(b)
|
257.1
|
|
|
2.8
|
|
|
259.9
|
|
|||
Net performance revenues
|
|
|
|
|
|
||||||
Realized
|
179.9
|
|
|
2.2
|
|
|
182.1
|
|
|||
Unrealized
|
95.5
|
|
|
21.8
|
|
|
117.3
|
|
|||
Total net performance revenues
|
$
|
275.4
|
|
|
$
|
24.0
|
|
|
$
|
299.4
|
|
Principal investment income (loss)
|
|
|
|
|
|
||||||
Realized
|
$
|
26.7
|
|
|
$
|
(16.1
|
)
|
|
$
|
10.6
|
|
Unrealized
|
32.3
|
|
|
(11.7
|
)
|
|
20.6
|
|
|||
Total principal investment income (loss)
|
$
|
59.0
|
|
|
$
|
(27.8
|
)
|
|
$
|
31.2
|
|
|
Six Months Ended June 30, 2018
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments
(2)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
(a)
|
|
|
|
|
|
||||||
Realized
|
$
|
318.0
|
|
|
$
|
(7.5
|
)
|
|
$
|
310.5
|
|
Unrealized
|
415.2
|
|
|
61.2
|
|
|
476.4
|
|
|||
Total performance revenues
(a)
|
733.2
|
|
|
53.7
|
|
|
786.9
|
|
|||
Performance revenues related compensation expense
(b)
|
|
|
|
|
|
||||||
Realized
|
160.1
|
|
|
(2.3
|
)
|
|
157.8
|
|
|||
Unrealized
|
219.9
|
|
|
(0.4
|
)
|
|
219.5
|
|
|||
Total performance revenues related compensation expense
(b)
|
380.0
|
|
|
(2.7
|
)
|
|
377.3
|
|
|||
Net performance revenues
|
|
|
|
|
|
||||||
Realized
|
157.9
|
|
|
(5.2
|
)
|
|
152.7
|
|
|||
Unrealized
|
195.3
|
|
|
61.6
|
|
|
256.9
|
|
|||
Total net performance revenues
|
$
|
353.2
|
|
|
$
|
56.4
|
|
|
$
|
409.6
|
|
Principal investment income (loss)
|
|
|
|
|
|
||||||
Realized
|
$
|
63.8
|
|
|
$
|
(27.4
|
)
|
|
$
|
36.4
|
|
Unrealized
|
68.5
|
|
|
(50.0
|
)
|
|
18.5
|
|
|||
Total principal investment income (loss)
|
$
|
132.3
|
|
|
$
|
(77.4
|
)
|
|
$
|
54.9
|
|
|
Six Months Ended June 30, 2017
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments
(2)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
(a)
|
|
|
|
|
|
||||||
Realized
|
$
|
424.2
|
|
|
$
|
11.5
|
|
|
$
|
435.7
|
|
Unrealized
|
784.3
|
|
|
54.0
|
|
|
838.3
|
|
|||
Total performance revenues
(a)
|
1,208.5
|
|
|
65.5
|
|
|
1,274.0
|
|
|||
Performance revenues related compensation expense
(b)
|
|
|
|
|
|
||||||
Realized
|
212.5
|
|
|
5.8
|
|
|
218.3
|
|
|||
Unrealized
|
361.7
|
|
|
0.5
|
|
|
362.2
|
|
|||
Total performance revenues related compensation expense
(b)
|
574.2
|
|
|
6.3
|
|
|
580.5
|
|
|||
Net performance revenues
|
|
|
|
|
|
||||||
Realized
|
211.7
|
|
|
5.7
|
|
|
217.4
|
|
|||
Unrealized
|
422.6
|
|
|
53.5
|
|
|
476.1
|
|
|||
Total net performance revenues
|
$
|
634.3
|
|
|
$
|
59.2
|
|
|
$
|
693.5
|
|
Principal investment income (loss)
|
|
|
|
|
|
||||||
Realized
|
$
|
26.5
|
|
|
$
|
(21.3
|
)
|
|
$
|
5.2
|
|
Unrealized
|
78.8
|
|
|
(42.2
|
)
|
|
36.6
|
|
|||
Total principal investment income (loss)
|
$
|
105.3
|
|
|
$
|
(63.5
|
)
|
|
$
|
41.8
|
|
|
As of June 30, 2018
|
||||||||||||||
|
Consolidated
Operating Entities |
|
Consolidated
Funds |
|
Eliminations
|
|
Consolidated
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
876.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
876.8
|
|
Cash and cash equivalents held at Consolidated Funds
|
—
|
|
|
395.3
|
|
|
—
|
|
|
395.3
|
|
||||
Restricted cash
|
1.7
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
||||
Corporate treasury investments
|
343.5
|
|
|
—
|
|
|
—
|
|
|
343.5
|
|
||||
Investments, including performance allocations of $3,900.3 million
|
5,897.6
|
|
|
—
|
|
|
(250.0
|
)
|
|
5,647.6
|
|
||||
Investments of Consolidated Funds
|
—
|
|
|
5,248.3
|
|
|
—
|
|
|
5,248.3
|
|
||||
Due from affiliates and other receivables, net
|
309.4
|
|
|
—
|
|
|
(6.2
|
)
|
|
303.2
|
|
||||
Due from affiliates and other receivables of Consolidated Funds, net
|
—
|
|
|
117.5
|
|
|
—
|
|
|
117.5
|
|
||||
Fixed assets, net
|
95.9
|
|
|
—
|
|
|
—
|
|
|
95.9
|
|
||||
Deposits and other
|
58.5
|
|
|
—
|
|
|
—
|
|
|
58.5
|
|
||||
Intangible assets, net
|
29.9
|
|
|
—
|
|
|
—
|
|
|
29.9
|
|
||||
Deferred tax assets
|
176.2
|
|
|
—
|
|
|
—
|
|
|
176.2
|
|
||||
Total assets
|
$
|
7,789.5
|
|
|
$
|
5,761.1
|
|
|
$
|
(256.2
|
)
|
|
$
|
13,294.4
|
|
Liabilities and partners’ capital
|
|
|
|
|
|
|
|
||||||||
Debt obligations
|
$
|
1,591.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,591.9
|
|
Loans payable of Consolidated Funds
|
—
|
|
|
4,835.1
|
|
|
—
|
|
|
4,835.1
|
|
||||
Accounts payable, accrued expenses and other liabilities
|
365.7
|
|
|
—
|
|
|
—
|
|
|
365.7
|
|
||||
Accrued compensation and benefits
|
2,346.7
|
|
|
—
|
|
|
—
|
|
|
2,346.7
|
|
||||
Due to affiliates
|
170.0
|
|
|
—
|
|
|
—
|
|
|
170.0
|
|
||||
Deferred revenue
|
62.0
|
|
|
—
|
|
|
—
|
|
|
62.0
|
|
||||
Deferred tax liabilities
|
69.7
|
|
|
—
|
|
|
—
|
|
|
69.7
|
|
||||
Other liabilities of Consolidated Funds
|
—
|
|
|
666.8
|
|
|
—
|
|
|
666.8
|
|
||||
Accrued giveback obligations
|
63.2
|
|
|
—
|
|
|
—
|
|
|
63.2
|
|
||||
Total liabilities
|
4,669.2
|
|
|
5,501.9
|
|
|
—
|
|
|
10,171.1
|
|
||||
Series A preferred units
|
387.5
|
|
|
—
|
|
|
—
|
|
|
387.5
|
|
||||
Partners’ capital
|
738.4
|
|
|
74.3
|
|
|
(74.3
|
)
|
|
738.4
|
|
||||
Accumulated other comprehensive loss
|
(78.2
|
)
|
|
2.3
|
|
|
(3.7
|
)
|
|
(79.6
|
)
|
||||
Non-controlling interests in consolidated entities
|
374.4
|
|
|
7.9
|
|
|
—
|
|
|
382.3
|
|
||||
Non-controlling interests in Carlyle Holdings
|
1,698.2
|
|
|
174.7
|
|
|
(178.2
|
)
|
|
1,694.7
|
|
||||
Total partners’ capital
|
3,120.3
|
|
|
259.2
|
|
|
(256.2
|
)
|
|
3,123.3
|
|
||||
Total liabilities and partners’ capital
|
$
|
7,789.5
|
|
|
$
|
5,761.1
|
|
|
$
|
(256.2
|
)
|
|
$
|
13,294.4
|
|
|
As of December 31, 2017 (As Adjusted)
|
||||||||||||||
|
Consolidated
Operating Entities |
|
Consolidated
Funds |
|
Eliminations
|
|
Consolidated
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
1,000.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,000.1
|
|
Cash and cash equivalents held at Consolidated Funds
|
—
|
|
|
377.6
|
|
|
—
|
|
|
377.6
|
|
||||
Restricted cash
|
28.7
|
|
|
—
|
|
|
—
|
|
|
28.7
|
|
||||
Corporate treasury investments
|
376.3
|
|
|
—
|
|
|
—
|
|
|
376.3
|
|
||||
Investments, including performance allocations of $3,664.3 million
|
5,508.5
|
|
|
—
|
|
|
(219.9
|
)
|
|
5,288.6
|
|
||||
Investments of Consolidated Funds
|
—
|
|
|
4,534.3
|
|
|
—
|
|
|
4,534.3
|
|
||||
Due from affiliates and other receivables, net
|
268.7
|
|
|
—
|
|
|
(5.3
|
)
|
|
263.4
|
|
||||
Due from affiliates and other receivables of Consolidated Funds, net
|
—
|
|
|
50.8
|
|
|
—
|
|
|
50.8
|
|
||||
Fixed assets, net
|
100.4
|
|
|
—
|
|
|
—
|
|
|
100.4
|
|
||||
Deposits and other
|
54.1
|
|
|
—
|
|
|
—
|
|
|
54.1
|
|
||||
Intangible assets, net
|
35.9
|
|
|
—
|
|
|
—
|
|
|
35.9
|
|
||||
Deferred tax assets
|
170.4
|
|
|
—
|
|
|
—
|
|
|
170.4
|
|
||||
Total assets
|
$
|
7,543.1
|
|
|
$
|
4,962.7
|
|
|
$
|
(225.2
|
)
|
|
$
|
12,280.6
|
|
Liabilities and partners’ capital
|
|
|
|
|
|
|
|
||||||||
Loans payable
|
$
|
1,573.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,573.6
|
|
Loans payable of Consolidated Funds
|
—
|
|
|
4,303.8
|
|
|
—
|
|
|
4,303.8
|
|
||||
Accounts payable, accrued expenses and other liabilities
|
355.1
|
|
|
—
|
|
|
—
|
|
|
355.1
|
|
||||
Accrued compensation and benefits
|
2,222.6
|
|
|
—
|
|
|
—
|
|
|
2,222.6
|
|
||||
Due to affiliates
|
229.9
|
|
|
—
|
|
|
—
|
|
|
229.9
|
|
||||
Deferred revenue
|
82.1
|
|
|
—
|
|
|
—
|
|
|
82.1
|
|
||||
Deferred tax liabilities
|
75.6
|
|
|
—
|
|
|
—
|
|
|
75.6
|
|
||||
Other liabilities of Consolidated Funds
|
—
|
|
|
422.1
|
|
|
—
|
|
|
422.1
|
|
||||
Accrued giveback obligations
|
66.8
|
|
|
—
|
|
|
—
|
|
|
66.8
|
|
||||
Total liabilities
|
4,605.7
|
|
|
4,725.9
|
|
|
—
|
|
|
9,331.6
|
|
||||
Series A preferred units
|
387.5
|
|
|
—
|
|
|
—
|
|
|
387.5
|
|
||||
Partners’ capital
|
701.8
|
|
|
62.8
|
|
|
(62.8
|
)
|
|
701.8
|
|
||||
Accumulated other comprehensive income (loss)
|
(72.2
|
)
|
|
4.1
|
|
|
(4.6
|
)
|
|
(72.7
|
)
|
||||
Non-controlling interests in consolidated entities
|
391.4
|
|
|
13.3
|
|
|
—
|
|
|
404.7
|
|
||||
Non-controlling interests in Carlyle Holdings
|
1,528.9
|
|
|
156.6
|
|
|
(157.8
|
)
|
|
1,527.7
|
|
||||
Total partners’ capital
|
2,937.4
|
|
|
236.8
|
|
|
(225.2
|
)
|
|
2,949.0
|
|
||||
Total liabilities and partners’ capital
|
$
|
7,543.1
|
|
|
$
|
4,962.7
|
|
|
$
|
(225.2
|
)
|
|
$
|
12,280.6
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||
|
Consolidated
Operating Entities |
|
Consolidated
Funds |
|
Eliminations
|
|
Consolidated
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
307.4
|
|
|
$
|
—
|
|
|
$
|
(6.1
|
)
|
|
$
|
301.3
|
|
Incentive fees
|
7.3
|
|
|
—
|
|
|
0.1
|
|
|
7.4
|
|
||||
Investment income
|
|
|
|
|
|
|
|
||||||||
Performance allocations
|
|
|
|
|
|
|
|
||||||||
Realized
|
97.4
|
|
|
—
|
|
|
—
|
|
|
97.4
|
|
||||
Unrealized
|
327.7
|
|
|
—
|
|
|
—
|
|
|
327.7
|
|
||||
Principal investment income
|
|
|
|
|
|
|
|
||||||||
Realized
|
41.5
|
|
|
—
|
|
|
(5.2
|
)
|
|
36.3
|
|
||||
Unrealized
|
50.5
|
|
|
—
|
|
|
(8.6
|
)
|
|
41.9
|
|
||||
Total investment income
|
517.1
|
|
|
—
|
|
|
(13.8
|
)
|
|
503.3
|
|
||||
Interest and other income
|
33.5
|
|
|
—
|
|
|
(5.5
|
)
|
|
28.0
|
|
||||
Interest and other income of Consolidated Funds
|
—
|
|
|
53.6
|
|
|
—
|
|
|
53.6
|
|
||||
Total revenues
|
865.3
|
|
|
53.6
|
|
|
(25.3
|
)
|
|
893.6
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
176.0
|
|
|
—
|
|
|
—
|
|
|
176.0
|
|
||||
Equity-based compensation
|
64.9
|
|
|
—
|
|
|
—
|
|
|
64.9
|
|
||||
Performance allocations and incentive fee related compensation
|
|
|
|
|
|
|
|
||||||||
Realized
|
51.7
|
|
|
—
|
|
|
—
|
|
|
51.7
|
|
||||
Unrealized
|
170.3
|
|
|
—
|
|
|
—
|
|
|
170.3
|
|
||||
Total compensation and benefits
|
462.9
|
|
|
—
|
|
|
—
|
|
|
462.9
|
|
||||
General, administrative and other expenses
|
126.8
|
|
|
—
|
|
|
—
|
|
|
126.8
|
|
||||
Interest
|
18.4
|
|
|
—
|
|
|
—
|
|
|
18.4
|
|
||||
Interest and other expenses of Consolidated Funds
|
—
|
|
|
62.0
|
|
|
(16.7
|
)
|
|
45.3
|
|
||||
Other non-operating expenses
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
||||
Total expenses
|
608.4
|
|
|
62.0
|
|
|
(16.7
|
)
|
|
653.7
|
|
||||
Other income
|
|
|
|
|
|
|
|
||||||||
Net investment gains of Consolidated Funds
|
—
|
|
|
12.9
|
|
|
—
|
|
|
12.9
|
|
||||
Income before provision for income taxes
|
256.9
|
|
|
4.5
|
|
|
(8.6
|
)
|
|
252.8
|
|
||||
Provision for income taxes
|
11.6
|
|
|
—
|
|
|
—
|
|
|
11.6
|
|
||||
Net income
|
245.3
|
|
|
4.5
|
|
|
(8.6
|
)
|
|
241.2
|
|
||||
Net income attributable to non-controlling interests in consolidated entities
|
20.8
|
|
|
—
|
|
|
(4.1
|
)
|
|
16.7
|
|
||||
Net income attributable to Carlyle Holdings
|
224.5
|
|
|
4.5
|
|
|
(4.5
|
)
|
|
224.5
|
|
||||
Net income attributable to non-controlling interests in Carlyle Holdings
|
155.1
|
|
|
—
|
|
|
—
|
|
|
155.1
|
|
||||
Net income attributable to The Carlyle Group L.P.
|
69.4
|
|
|
4.5
|
|
|
(4.5
|
)
|
|
69.4
|
|
||||
Net income attributable to Series A Preferred Unitholders
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
||||
Net income attributable to The Carlyle Group L.P. Common Unitholders
|
$
|
63.5
|
|
|
$
|
4.5
|
|
|
$
|
(4.5
|
)
|
|
$
|
63.5
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||
|
Consolidated
Operating Entities |
|
Consolidated
Funds |
|
Eliminations
|
|
Consolidated
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
577.7
|
|
|
$
|
—
|
|
|
$
|
(11.9
|
)
|
|
$
|
565.8
|
|
Incentive fees
|
13.7
|
|
|
—
|
|
|
—
|
|
|
13.7
|
|
||||
Investment income
|
|
|
|
|
|
|
|
||||||||
Performance allocations
|
|
|
|
|
|
|
|
||||||||
Realized
|
318.0
|
|
|
—
|
|
|
—
|
|
|
318.0
|
|
||||
Unrealized
|
415.2
|
|
|
—
|
|
|
—
|
|
|
415.2
|
|
||||
Principal investment income
|
|
|
|
|
|
|
|
||||||||
Realized
|
69.0
|
|
|
—
|
|
|
(5.2
|
)
|
|
63.8
|
|
||||
Unrealized
|
79.6
|
|
|
—
|
|
|
(11.1
|
)
|
|
68.5
|
|
||||
Total investment income
|
881.8
|
|
|
—
|
|
|
(16.3
|
)
|
|
865.5
|
|
||||
Interest and other income
|
62.0
|
|
|
—
|
|
|
(11.5
|
)
|
|
50.5
|
|
||||
Interest and other income of Consolidated Funds
|
—
|
|
|
100.9
|
|
|
—
|
|
|
100.9
|
|
||||
Total revenues
|
1,535.2
|
|
|
100.9
|
|
|
(39.7
|
)
|
|
1,596.4
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
363.3
|
|
|
—
|
|
|
—
|
|
|
363.3
|
|
||||
Equity-based compensation
|
149.8
|
|
|
—
|
|
|
—
|
|
|
149.8
|
|
||||
Performance allocations and incentive fee related compensation
|
|
|
|
|
|
|
|
||||||||
Realized
|
160.1
|
|
|
—
|
|
|
—
|
|
|
160.1
|
|
||||
Unrealized
|
219.9
|
|
|
—
|
|
|
—
|
|
|
219.9
|
|
||||
Total compensation and benefits
|
893.1
|
|
|
—
|
|
|
—
|
|
|
893.1
|
|
||||
General, administrative and other expenses
|
221.8
|
|
|
—
|
|
|
—
|
|
|
221.8
|
|
||||
Interest
|
36.3
|
|
|
—
|
|
|
—
|
|
|
36.3
|
|
||||
Interest and other expenses of Consolidated Funds
|
—
|
|
|
106.3
|
|
|
(25.1
|
)
|
|
81.2
|
|
||||
Other non-operating expenses
|
0.6
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||
Total expenses
|
1,151.8
|
|
|
106.3
|
|
|
(25.1
|
)
|
|
1,233.0
|
|
||||
Other income
|
|
|
|
|
|
|
|
||||||||
Net investment gains of Consolidated Funds
|
—
|
|
|
14.9
|
|
|
—
|
|
|
14.9
|
|
||||
Income before provision for income taxes
|
383.4
|
|
|
9.5
|
|
|
(14.6
|
)
|
|
378.3
|
|
||||
Provision for income taxes
|
19.4
|
|
|
—
|
|
|
—
|
|
|
19.4
|
|
||||
Net income
|
364.0
|
|
|
9.5
|
|
|
(14.6
|
)
|
|
358.9
|
|
||||
Net income attributable to non-controlling interests in consolidated entities
|
32.8
|
|
|
—
|
|
|
(5.1
|
)
|
|
27.7
|
|
||||
Net income attributable to Carlyle Holdings
|
331.2
|
|
|
9.5
|
|
|
(9.5
|
)
|
|
331.2
|
|
||||
Net income attributable to non-controlling interests in Carlyle Holdings
|
222.1
|
|
|
—
|
|
|
—
|
|
|
222.1
|
|
||||
Net income attributable to The Carlyle Group L.P.
|
109.1
|
|
|
9.5
|
|
|
(9.5
|
)
|
|
109.1
|
|
||||
Net income attributable to Series A Preferred Unitholders
|
11.8
|
|
|
—
|
|
|
—
|
|
|
11.8
|
|
||||
Net income attributable to The Carlyle Group L.P. Common Unitholders
|
$
|
97.3
|
|
|
$
|
9.5
|
|
|
$
|
(9.5
|
)
|
|
$
|
97.3
|
|
|
Three Months Ended June 30, 2017 (As Adjusted)
|
||||||||||||||
|
Consolidated
Operating Entities |
|
Consolidated
Funds |
|
Eliminations
|
|
Consolidated
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
243.4
|
|
|
$
|
—
|
|
|
$
|
(4.6
|
)
|
|
$
|
238.8
|
|
Incentive fees
|
13.1
|
|
|
—
|
|
|
(2.0
|
)
|
|
11.1
|
|
||||
Investment income (loss)
|
|
|
|
|
|
|
|
||||||||
Performance allocations
|
|
|
|
|
|
|
|
||||||||
Realized
|
346.6
|
|
|
—
|
|
|
—
|
|
|
346.6
|
|
||||
Unrealized
|
185.9
|
|
|
—
|
|
|
—
|
|
|
185.9
|
|
||||
Principal investment income
|
|
|
|
|
|
|
|
||||||||
Realized
|
27.3
|
|
|
—
|
|
|
(0.6
|
)
|
|
26.7
|
|
||||
Unrealized
|
27.6
|
|
|
—
|
|
|
4.7
|
|
|
32.3
|
|
||||
Total investment income
|
587.4
|
|
|
—
|
|
|
4.1
|
|
|
591.5
|
|
||||
Interest and other income
|
10.3
|
|
|
—
|
|
|
(4.7
|
)
|
|
5.6
|
|
||||
Interest and other income of Consolidated Funds
|
—
|
|
|
45.0
|
|
|
—
|
|
|
45.0
|
|
||||
Revenue of a real estate VIE
|
16.4
|
|
|
—
|
|
|
—
|
|
|
16.4
|
|
||||
Total revenues
|
870.6
|
|
|
45.0
|
|
|
(7.2
|
)
|
|
908.4
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
151.0
|
|
|
—
|
|
|
—
|
|
|
151.0
|
|
||||
Equity-based compensation
|
88.0
|
|
|
—
|
|
|
—
|
|
|
88.0
|
|
||||
Performance allocations and incentive fee related compensation
|
|
|
|
|
|
|
|
||||||||
Realized
|
166.7
|
|
|
—
|
|
|
—
|
|
|
166.7
|
|
||||
Unrealized
|
90.4
|
|
|
—
|
|
|
—
|
|
|
90.4
|
|
||||
Total compensation and benefits
|
496.1
|
|
|
—
|
|
|
—
|
|
|
496.1
|
|
||||
General, administrative and other expenses
|
95.8
|
|
|
—
|
|
|
—
|
|
|
95.8
|
|
||||
Interest
|
16.5
|
|
|
—
|
|
|
—
|
|
|
16.5
|
|
||||
Interest and other expenses of Consolidated Funds
|
—
|
|
|
91.9
|
|
|
(13.4
|
)
|
|
78.5
|
|
||||
Interest and other expenses of a real estate VIE and loss on deconsolidation
|
18.4
|
|
|
—
|
|
|
—
|
|
|
18.4
|
|
||||
Other non-operating expenses
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Total expenses
|
626.9
|
|
|
91.9
|
|
|
(13.4
|
)
|
|
705.4
|
|
||||
Other income
|
|
|
|
|
|
|
|
||||||||
Net investment gains of Consolidated Funds
|
—
|
|
|
40.7
|
|
|
—
|
|
|
40.7
|
|
||||
Income (loss) before provision for income taxes
|
243.7
|
|
|
(6.2
|
)
|
|
6.2
|
|
|
243.7
|
|
||||
Provision for income taxes
|
13.2
|
|
|
—
|
|
|
—
|
|
|
13.2
|
|
||||
Net income (loss)
|
230.5
|
|
|
(6.2
|
)
|
|
6.2
|
|
|
230.5
|
|
||||
Net income attributable to non-controlling interests in consolidated entities
|
16.5
|
|
|
—
|
|
|
—
|
|
|
16.5
|
|
||||
Net income (loss) attributable to Carlyle Holdings
|
214.0
|
|
|
(6.2
|
)
|
|
6.2
|
|
|
214.0
|
|
||||
Net income attributable to non-controlling interests in Carlyle Holdings
|
156.4
|
|
|
—
|
|
|
—
|
|
|
156.4
|
|
||||
Net income (loss) attributable to The Carlyle Group L.P.
|
$
|
57.6
|
|
|
$
|
(6.2
|
)
|
|
$
|
6.2
|
|
|
$
|
57.6
|
|
|
Six Months Ended June 30, 2017 (As Adjusted)
|
||||||||||||||
|
Consolidated
Operating Entities |
|
Consolidated
Funds |
|
Eliminations
|
|
Consolidated
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
493.7
|
|
|
$
|
—
|
|
|
$
|
(8.6
|
)
|
|
$
|
485.1
|
|
Incentive fees
|
18.7
|
|
|
—
|
|
|
(2.0
|
)
|
|
16.7
|
|
||||
Investment income (loss)
|
|
|
|
|
|
|
|
||||||||
Performance allocations
|
|
|
|
|
|
|
|
||||||||
Realized
|
424.2
|
|
|
—
|
|
|
—
|
|
|
424.2
|
|
||||
Unrealized
|
784.3
|
|
|
—
|
|
|
—
|
|
|
784.3
|
|
||||
Principal investment income
|
|
|
|
|
|
|
|
||||||||
Realized
|
27.2
|
|
|
—
|
|
|
(0.7
|
)
|
|
26.5
|
|
||||
Unrealized
|
79.4
|
|
|
—
|
|
|
(0.6
|
)
|
|
78.8
|
|
||||
Total investment income
|
1,315.1
|
|
|
—
|
|
|
(1.3
|
)
|
|
1,313.8
|
|
||||
Interest and other income
|
26.2
|
|
|
—
|
|
|
(10.2
|
)
|
|
16.0
|
|
||||
Interest and other income of Consolidated Funds
|
—
|
|
|
87.9
|
|
|
—
|
|
|
87.9
|
|
||||
Revenue of a real estate VIE
|
109.0
|
|
|
—
|
|
|
—
|
|
|
109.0
|
|
||||
Total revenues
|
1,962.7
|
|
|
87.9
|
|
|
(22.1
|
)
|
|
2,028.5
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
297.0
|
|
|
—
|
|
|
—
|
|
|
297.0
|
|
||||
Equity-based compensation
|
160.8
|
|
|
—
|
|
|
—
|
|
|
160.8
|
|
||||
Performance allocations and incentive fee related compensation
|
|
|
|
|
|
|
|
||||||||
Realized
|
212.5
|
|
|
—
|
|
|
—
|
|
|
212.5
|
|
||||
Unrealized
|
361.7
|
|
|
—
|
|
|
—
|
|
|
361.7
|
|
||||
Total compensation and benefits
|
1,032.0
|
|
|
—
|
|
|
—
|
|
|
1,032.0
|
|
||||
General, administrative and other expenses
|
189.6
|
|
|
—
|
|
|
—
|
|
|
189.6
|
|
||||
Interest
|
31.5
|
|
|
—
|
|
|
—
|
|
|
31.5
|
|
||||
Interest and other expenses of Consolidated Funds
|
—
|
|
|
144.9
|
|
|
(21.2
|
)
|
|
123.7
|
|
||||
Interest and other expenses of a real estate VIE and loss on deconsolidation
|
138.0
|
|
|
—
|
|
|
—
|
|
|
138.0
|
|
||||
Other non-operating expenses
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Total expenses
|
1,391.2
|
|
|
144.9
|
|
|
(21.2
|
)
|
|
1,514.9
|
|
||||
Other income
|
|
|
|
|
|
|
|
||||||||
Net investment gains of Consolidated Funds
|
—
|
|
|
57.8
|
|
|
—
|
|
|
57.8
|
|
||||
Income before provision for income taxes
|
571.5
|
|
|
0.8
|
|
|
(0.9
|
)
|
|
571.4
|
|
||||
Provision for income taxes
|
19.0
|
|
|
—
|
|
|
—
|
|
|
19.0
|
|
||||
Net income
|
552.5
|
|
|
0.8
|
|
|
(0.9
|
)
|
|
552.4
|
|
||||
Net income attributable to non-controlling interests in consolidated entities
|
19.9
|
|
|
—
|
|
|
(0.1
|
)
|
|
19.8
|
|
||||
Net income attributable to Carlyle Holdings
|
532.6
|
|
|
0.8
|
|
|
(0.8
|
)
|
|
532.6
|
|
||||
Net income attributable to non-controlling interests in Carlyle Holdings
|
392.0
|
|
|
—
|
|
|
—
|
|
|
392.0
|
|
||||
Net income attributable to The Carlyle Group L.P.
|
$
|
140.6
|
|
|
$
|
0.8
|
|
|
$
|
(0.8
|
)
|
|
$
|
140.6
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(Dollars in millions)
|
||||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
364.0
|
|
|
$
|
552.5
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
21.9
|
|
|
20.1
|
|
||
Equity-based compensation
|
149.8
|
|
|
160.8
|
|
||
Non-cash performance allocations and incentive fees
|
(215.6
|
)
|
|
(511.8
|
)
|
||
Other non-cash amounts
|
4.7
|
|
|
(9.4
|
)
|
||
Principal investment income
|
(134.5
|
)
|
|
(95.8
|
)
|
||
Purchases of investments
|
(274.9
|
)
|
|
(236.9
|
)
|
||
Proceeds from the sale of investments
|
393.0
|
|
|
311.9
|
|
||
Payments of contingent consideration
|
(37.5
|
)
|
|
(22.5
|
)
|
||
Deconsolidation of Claren Road
|
—
|
|
|
(23.3
|
)
|
||
Change in deferred taxes, net
|
(2.6
|
)
|
|
0.3
|
|
||
Change in due from affiliates and other receivables
|
(48.6
|
)
|
|
(75.1
|
)
|
||
Change in receivables and inventory of a real estate VIE
|
—
|
|
|
(14.5
|
)
|
||
Change in deposits and other
|
(12.1
|
)
|
|
(9.3
|
)
|
||
Change in other assets of a real estate VIE
|
—
|
|
|
1.6
|
|
||
Change in accounts payable, accrued expenses and other liabilities
|
0.8
|
|
|
(3.3
|
)
|
||
Change in accrued compensation and benefits
|
(8.9
|
)
|
|
(41.1
|
)
|
||
Change in due to affiliates
|
(26.6
|
)
|
|
0.1
|
|
||
Change in other liabilities of a real estate VIE
|
—
|
|
|
47.9
|
|
||
Change in deferred revenue
|
(19.3
|
)
|
|
27.7
|
|
||
Net cash provided by operating activities
|
153.6
|
|
|
79.9
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchases of fixed assets, net
|
(12.5
|
)
|
|
(16.7
|
)
|
||
Net cash used in investing activities
|
(12.5
|
)
|
|
(16.7
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Borrowings under credit facility
|
—
|
|
|
250.0
|
|
||
Repayments under credit facility
|
—
|
|
|
(250.0
|
)
|
||
Payments on debt obligations
|
(13.8
|
)
|
|
—
|
|
||
Proceeds from debt obligations
|
34.5
|
|
|
112.1
|
|
||
Net payments on loans payable of a real estate VIE
|
—
|
|
|
(14.3
|
)
|
||
Payments of contingent consideration
|
—
|
|
|
(0.4
|
)
|
||
Distributions to common unitholders
|
(61.0
|
)
|
|
(22.7
|
)
|
||
Distributions to preferred unitholders
|
(11.8
|
)
|
|
—
|
|
||
Distributions to non-controlling interest holders in Carlyle Holdings
|
(140.4
|
)
|
|
(63.1
|
)
|
||
Contributions from non-controlling interest holders
|
8.9
|
|
|
25.8
|
|
||
Distributions to non-controlling interest holders
|
(51.8
|
)
|
|
(53.0
|
)
|
||
Common units repurchased
|
(51.0
|
)
|
|
(0.2
|
)
|
||
Change in due to/from affiliates financing activities
|
4.0
|
|
|
49.2
|
|
||
Net cash (used in) provided by financing activities
|
(282.4
|
)
|
|
33.4
|
|
||
Effect of foreign exchange rate changes
|
(9.0
|
)
|
|
18.7
|
|
||
(Decrease) increase in cash, cash equivalents and restricted cash
|
(150.3
|
)
|
|
115.3
|
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
1,028.8
|
|
|
684.0
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
878.5
|
|
|
$
|
799.3
|
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents and restricted cash, end of period:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
876.8
|
|
|
$
|
789.9
|
|
Restricted cash
|
1.7
|
|
|
9.4
|
|
||
Total cash, cash equivalents and restricted cash, end of period
|
$
|
878.5
|
|
|
$
|
799.3
|
|
|
|
|
|
||||
Cash and cash equivalents held at Consolidated Funds
|
$
|
395.3
|
|
|
$
|
416.1
|
|
•
|
Corporate Private Equity
— Our Corporate Private Equity segment advises our
24
buyout and
10
growth capital funds, which seek a wide variety of investments of different sizes and growth potentials. As of
June 30, 2018
, our Corporate Private Equity segment had
$81 billion
in AUM and
$56 billion
in Fee-earning AUM.
|
•
|
Real Assets
— Our Real Assets segment advises our
eleven
U.S. and internationally focused real estate funds, our
two
infrastructure funds, our
two
power funds, our international energy fund, as well as our
four
Legacy Energy funds (funds that we jointly advise with Riverstone). The segment also includes
four
NGP management fee funds and
four
carry funds advised by NGP. As of
June 30, 2018
, our Real Assets segment had
$45 billion
in AUM and
$32 billion
in Fee-earning AUM.
|
•
|
Global Credit
— Our Global Credit segment advises a group of
58
funds that pursue investment opportunities across structured credit, direct lending, distressed credit, energy credit, and opportunistic credit. As of
June 30, 2018
, our Global Credit segment had
$36 billion
in AUM and
$29 billion
in Fee-earning AUM.
|
•
|
Investment Solutions
— Our Investment Solutions segment advises global private equity and real estate fund of funds programs and related co-investment and secondary activities across
215
fund vehicles. As of
June 30, 2018
, our Investment Solutions segment had
$48 billion
in AUM and
$30 billion
in Fee-earning AUM.
|
(1)
|
Amounts represent gross assets as of
June 30, 2018
.
|
(2)
|
Includes NGP M&R, NGP ETP II, NGP VIII and NGP IX.
|
•
|
$120.2 million from CP VI (with total AUM of approximately
$14.6 billion
), and
|
•
|
$48.4 million from Carlyle International Energy Fund, L.P. (“CIEP”) (with total AUM of approximately
$3.1 billion
).
|
•
|
$164.7 million from CP VI,
|
•
|
$112.0 million from CEP IV, and
|
•
|
$79.1 million from CRP VII.
|
|
As of June 30, 2018
|
||||||||||||||||||
|
Corporate
Private Equity |
|
Real
Assets
|
|
Global Credit
|
|
Investment Solutions
|
|
Total
|
||||||||||
Consolidated Results
|
|
|
|
|
|
|
|
|
|
||||||||||
Level I
|
$
|
2,570
|
|
|
$
|
4,695
|
|
|
$
|
276
|
|
|
$
|
1,016
|
|
|
$
|
8,557
|
|
Level II
|
151
|
|
|
175
|
|
|
344
|
|
|
—
|
|
|
670
|
|
|||||
Level III
|
38,995
|
|
|
23,296
|
|
|
28,125
|
|
|
29,543
|
|
|
119,959
|
|
|||||
Fair Value of Investments
|
41,716
|
|
|
28,166
|
|
|
28,745
|
|
|
30,559
|
|
|
129,186
|
|
|||||
Available Capital
|
39,452
|
|
|
17,252
|
|
|
6,786
|
|
|
17,066
|
|
|
80,556
|
|
|||||
Total AUM
|
$
|
81,168
|
|
|
$
|
45,418
|
|
|
$
|
35,531
|
|
|
$
|
47,625
|
|
|
$
|
209,742
|
|
(a)
|
the amount of limited partner capital commitments, generally for carry funds where the original investment period has not expired, for AlpInvest carry funds during the commitment fee period and for Metropolitan carry funds during the weighted-average investment period of the underlying funds (see “Fee-earning AUM based on capital commitments” in the table below for the amount of this component at each period);
|
(b)
|
the remaining amount of limited partner invested capital at cost, generally for carry funds and certain co-investment vehicles where the original investment period has expired, Metropolitan carry funds after the expiration of the weighted-average investment period of the underlying funds, and one of our business development companies (see “Fee-earning AUM based on invested capital” in the table below for the amount of this component at each period);
|
(c)
|
the amount of aggregate fee-earning collateral balance at par of our collateralized loan obligations (“CLOs”), as defined in the fund indentures (typically exclusive of equities and defaulted positions) as of the quarterly cut-off date for each CLO (see “Fee-earning AUM based on collateral balances, at par” in the table below for the amount of this component at each period);
|
(d)
|
the external investor portion of the net asset value of our hedge fund and fund of hedge funds vehicles (pre redemptions and subscriptions), as well as certain carry funds (see “Fee-earning AUM based on net asset value” in the table below for the amount of this component at each period);
|
(e)
|
the gross assets (including assets acquired with leverage), excluding cash and cash equivalents, of one of our business development companies and certain carry funds (see “Fee-earning AUM based on lower of cost or fair value and other” in the table below for the amount of this component at each period); and
|
(f)
|
the lower of cost or fair value of invested capital, generally for AlpInvest carry funds where the commitment fee period has expired and certain carry funds where the investment period has expired, (see “Fee-earning AUM based on lower of cost or fair value and other” in the table below for the amount of this component at each period).
|
|
As of June 30,
|
||||||
|
2018
|
|
2017
|
||||
Consolidated Results
|
(Dollars in millions)
|
||||||
Components of Fee-earning AUM
|
|
|
|
||||
Fee-earning AUM based on capital commitments (1)
|
$
|
61,823
|
|
|
$
|
53,412
|
|
Fee-earning AUM based on invested capital (2)
|
41,110
|
|
|
23,222
|
|
||
Fee-earning AUM based on collateral balances, at par (3)
|
20,046
|
|
|
17,111
|
|
||
Fee-earning AUM based on net asset value (4)
|
2,228
|
|
|
1,310
|
|
||
Fee-earning AUM based on lower of cost or fair value and other (5)
|
21,270
|
|
|
21,079
|
|
||
Balance, End of Period (6) (7)
|
$
|
146,477
|
|
|
$
|
116,134
|
|
(1)
|
Reflects limited partner capital commitments where the original investment period, weighted-average investment period, or commitment fee period has not expired.
|
(2)
|
Reflects limited partner invested capital at cost and includes amounts committed to or reserved for investments for certain Real Assets and Investment Solutions funds.
|
(3)
|
Represents the amount of aggregate Fee-earning collateral balances and principal balances, at par, for our CLOs/structured products.
|
(4)
|
Reflects the net asset value (pre-redemptions and subscriptions) of certain carry funds.
|
(5)
|
Includes funds with fees based on gross asset value.
|
(6)
|
Energy II, Energy III, Energy IV, and Renew II (collectively, the “Legacy Energy Funds”), are managed with Riverstone Holdings LLC and its affiliates. Affiliates of both Carlyle and Riverstone act as investment advisers to each of the Legacy Energy Funds. Carlyle has a minority representation on the management committees of Energy IV and Renew II. Carlyle and Riverstone each hold half of the seats on the management committees of Energy II and Energy III, but the investment period for these funds has expired and the remaining investments in such funds are being disposed of in the ordinary course of business. As of
June 30, 2018
, the Legacy Energy Funds had, in the aggregate, approximately
$4.9 billion
in AUM and
$3.4 billion
in Fee-earning AUM. We are no longer raising capital for the Legacy Energy Funds and expect these balances to continue to decrease over time as the funds wind down.
|
(7)
|
Ending balance excludes
$10 billion
of pending Fee-earning AUM for which fees have not yet been activated.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Consolidated Results
|
(Dollars in millions)
|
|
(Dollars in millions)
|
||||||||||||
Fee-earning AUM Rollforward
|
|
|
|
|
|
|
|
||||||||
Balance, Beginning of Period
|
$
|
125,771
|
|
|
$
|
114,905
|
|
|
$
|
124,595
|
|
|
$
|
114,994
|
|
Inflows, including Fee-paying Commitments (1)
|
25,939
|
|
|
2,303
|
|
|
28,491
|
|
|
5,039
|
|
||||
Outflows, including Distributions (2)
|
(4,617
|
)
|
|
(3,495
|
)
|
|
(7,069
|
)
|
|
(6,161
|
)
|
||||
Changes in CLO collateral balances (3)
|
1,339
|
|
|
389
|
|
|
1,600
|
|
|
(349
|
)
|
||||
Market Appreciation/(Depreciation) (4)
|
13
|
|
|
(179
|
)
|
|
(22
|
)
|
|
(155
|
)
|
||||
Foreign Exchange and other (5)
|
(1,968
|
)
|
|
2,211
|
|
|
(1,118
|
)
|
|
2,766
|
|
||||
Balance, End of Period
|
$
|
146,477
|
|
|
$
|
116,134
|
|
|
$
|
146,477
|
|
|
$
|
116,134
|
|
(1)
|
Inflows represent limited partner capital raised and capital invested by our carry funds and the NGP management fee funds outside the investment period, weighted-average investment period or commitment fee period.
Inflows do not include funds raised of
$10 billion
and
$9 billion
as of
June 30, 2018
and
2017
, respectively, which are not yet earning fees.
|
(2)
|
Outflows represent limited partner distributions from our carry funds and the NGP management fee funds, changes in basis for our carry funds where the investment period, weighted-average investment period or commitment fee period has expired, and reductions for funds that are no longer calling for fees.
|
(3)
|
Represents the change in the aggregate Fee-earning collateral balances at par of our CLOs/structured products, as of the quarterly cut-off dates.
|
(4)
|
Market Appreciation/(Depreciation) represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the lower of cost or fair value and net asset value.
|
(5)
|
Includes activity of funds with fees based on gross asset value. Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.
|
(b)
|
the amount of aggregate collateral balance and principal cash at par or aggregate principal amount of the notes of our CLOs and other structured products (inclusive of all positions);
|
(c)
|
the net asset value (pre-redemptions and subscriptions) of our long/short credit, emerging markets, multi-product macroeconomic, fund of hedge funds vehicles, mutual fund and other hedge funds; and
|
(d)
|
the gross assets (including assets acquired with leverage) of our business development companies, plus the capital that Carlyle is entitled to call from investors in those vehicles pursuant to the terms of their capital commitments to those vehicles.
|
|
Three Months Ended
June 30, 2018
|
|
Six Months Ended
June 30, 2018
|
||||
|
(Dollars in millions)
|
|
(Dollars in millions)
|
||||
Consolidated Results
|
|
|
|
||||
Total AUM Rollforward
|
|
|
|
||||
Balance, Beginning of Period
|
$
|
201,496
|
|
|
$
|
195,061
|
|
New Commitments (1)
|
12,112
|
|
|
19,813
|
|
||
Outflows (2)
|
(5,959
|
)
|
|
(12,292
|
)
|
||
Market Appreciation/(Depreciation) (3)
|
5,759
|
|
|
9,015
|
|
||
Foreign Exchange Gain/(Loss) (4)
|
(3,120
|
)
|
|
(1,750
|
)
|
||
Other (5)
|
(546
|
)
|
|
(105
|
)
|
||
Balance, End of Period
|
$
|
209,742
|
|
|
$
|
209,742
|
|
(1)
|
New Commitments reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects translation at the average quarterly rate, while the separately reported Fundraising metric is translated at the spot rate for each individual closing.
|
(2)
|
Outflows includes distributions in our carry funds and related co-investment vehicles, the NGP management fee funds and separately managed accounts, as well as runoff of CLO collateral balances.
|
(3)
|
Market Appreciation/(Depreciation) generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds and related co-investment vehicles, the NGP management fee funds and separately managed accounts.
|
(4)
|
Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.
|
(5)
|
Includes expiring available capital, the impact of capital calls for fees and expenses, change in gross asset value for our business development companies and other changes in AUM.
|
(1)
|
Reflects Corporate Private Equity, Real Assets, and Global Credit carry funds. Appreciation/Depreciation is fund only, and excludes the impact of external co-investment.
|
(2)
|
For Carlyle returns, “Appreciation/Depreciation” represents realized and unrealized gain / loss for the period on a total return basis before fees and expenses. The percentage of return is calculated as the sum of ending remaining investment fair market value ("FMV") and net investment outflow (sales proceeds less net purchases) less beginning remaining investment FMV divided by beginning remaining investment FMV.
|
(3)
|
Public portfolio includes initial public offerings ("IPO") that occurred in the quarter. Investments may be reported as private in quarters prior to the IPO quarter.
|
(4)
|
The MSCI ACWI - All Cap Index represents the performance of the MSCI All Country World Index across all market capitalization sizes of the global equity market. There are significant differences between the types of securities and assets typically acquired by our carry funds and the investments covered by the MSCI All Country World Index. Specifically, our carry funds may make investments in securities and other assets that have a greater degree of risk and volatility, and less liquidity, than those securities included in the MSCI All Country World Index. Moreover, investors in the securities included in the MSCI All Country World Index may not be subject to the management fees, carried interest or expenses to which investors in our carry funds are typically subject. Comparisons between the our carry fund appreciation and the MSCI All Country World Index are included for informational purposes only.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
(As Adjusted) |
|
2018
|
|
2017
(As Adjusted)
|
||||||||
|
(Dollars in millions, except unit and per unit data)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
301.3
|
|
|
$
|
238.8
|
|
|
$
|
565.8
|
|
|
$
|
485.1
|
|
Incentive fees
|
7.4
|
|
|
11.1
|
|
|
13.7
|
|
|
16.7
|
|
||||
Investment income
|
|
|
|
|
|
|
|
||||||||
Performance allocations
|
|
|
|
|
|
|
|
||||||||
Realized
|
97.4
|
|
|
346.6
|
|
|
318.0
|
|
|
424.2
|
|
||||
Unrealized
|
327.7
|
|
|
185.9
|
|
|
415.2
|
|
|
784.3
|
|
||||
Principal investment income
|
|
|
|
|
|
|
|
||||||||
Realized
|
36.3
|
|
|
26.7
|
|
|
63.8
|
|
|
26.5
|
|
||||
Unrealized
|
41.9
|
|
|
32.3
|
|
|
68.5
|
|
|
78.8
|
|
||||
Total investment income
|
503.3
|
|
|
591.5
|
|
|
865.5
|
|
|
1,313.8
|
|
||||
Interest and other income
|
28.0
|
|
|
5.6
|
|
|
50.5
|
|
|
16.0
|
|
||||
Interest and other income of Consolidated Funds
|
53.6
|
|
|
45.0
|
|
|
100.9
|
|
|
87.9
|
|
||||
Revenue of a real estate VIE
|
—
|
|
|
16.4
|
|
|
—
|
|
|
109.0
|
|
||||
Total revenues
|
893.6
|
|
|
908.4
|
|
|
1,596.4
|
|
|
2,028.5
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
176.0
|
|
|
151.0
|
|
|
363.3
|
|
|
297.0
|
|
||||
Equity-based compensation
|
64.9
|
|
|
88.0
|
|
|
149.8
|
|
|
160.8
|
|
||||
Performance allocations and incentive fee related compensation
|
|
|
|
|
|
|
|
||||||||
Realized
|
51.7
|
|
|
166.7
|
|
|
160.1
|
|
|
212.5
|
|
||||
Unrealized
|
170.3
|
|
|
90.4
|
|
|
219.9
|
|
|
361.7
|
|
||||
Total compensation and benefits
|
462.9
|
|
|
496.1
|
|
|
893.1
|
|
|
1,032.0
|
|
||||
General, administrative and other expenses
|
126.8
|
|
|
95.8
|
|
|
221.8
|
|
|
189.6
|
|
||||
Interest
|
18.4
|
|
|
16.5
|
|
|
36.3
|
|
|
31.5
|
|
||||
Interest and other expenses of Consolidated Funds
|
45.3
|
|
|
78.5
|
|
|
81.2
|
|
|
123.7
|
|
||||
Interest and other expenses of a real estate VIE and loss on deconsolidation
|
—
|
|
|
18.4
|
|
|
—
|
|
|
138.0
|
|
||||
Other non-operating expenses
|
0.3
|
|
|
0.1
|
|
|
0.6
|
|
|
0.1
|
|
||||
Total expenses
|
653.7
|
|
|
705.4
|
|
|
1,233.0
|
|
|
1,514.9
|
|
||||
Other income
|
|
|
|
|
|
|
|
||||||||
Net investment gains of Consolidated Funds
|
12.9
|
|
|
40.7
|
|
|
14.9
|
|
|
57.8
|
|
||||
Income before provision for income taxes
|
252.8
|
|
|
243.7
|
|
|
378.3
|
|
|
571.4
|
|
||||
Provision for income taxes
|
11.6
|
|
|
13.2
|
|
|
19.4
|
|
|
19.0
|
|
||||
Net income
|
241.2
|
|
|
230.5
|
|
|
358.9
|
|
|
552.4
|
|
||||
Net income attributable to non-controlling interests in consolidated entities
|
16.7
|
|
|
16.5
|
|
|
27.7
|
|
|
19.8
|
|
||||
Net income attributable to Carlyle Holdings
|
224.5
|
|
|
214.0
|
|
|
331.2
|
|
|
532.6
|
|
||||
Net income attributable to non-controlling interests in Carlyle Holdings
|
155.1
|
|
|
156.4
|
|
|
222.1
|
|
|
392.0
|
|
||||
Net income attributable to The Carlyle Group L.P.
|
69.4
|
|
|
57.6
|
|
|
109.1
|
|
|
140.6
|
|
||||
Net income attributable to Series A Preferred Unitholders
|
5.9
|
|
|
—
|
|
|
11.8
|
|
|
—
|
|
||||
Net income attributable to The Carlyle Group L.P. common unitholders
|
$
|
63.5
|
|
|
$
|
57.6
|
|
|
$
|
97.3
|
|
|
$
|
140.6
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to The Carlyle Group L.P. per common unit
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.62
|
|
|
$
|
0.65
|
|
|
$
|
0.96
|
|
|
$
|
1.61
|
|
Diluted
|
$
|
0.56
|
|
|
$
|
0.59
|
|
|
$
|
0.87
|
|
|
$
|
1.49
|
|
Weighted-average common units
|
|
|
|
|
|
|
|
||||||||
Basic
|
102,465,109
|
|
|
88,801,343
|
|
|
101,603,587
|
|
|
87,079,007
|
|
||||
Diluted
|
112,582,728
|
|
|
96,986,255
|
|
|
111,948,144
|
|
|
94,486,422
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Total Revenues, June 30, 2017
|
$
|
908.4
|
|
$
|
2,028.5
|
|
Increases (Decreases):
|
|
|
||||
Increase in fund management fees
|
62.5
|
|
80.7
|
|
||
Decrease in incentive fees
|
(3.7
|
)
|
(3.0
|
)
|
||
Decrease in investment income, including performance allocations
|
(88.2
|
)
|
(448.3
|
)
|
||
Increase in interest and other income
|
22.4
|
|
34.5
|
|
||
Increase in interest and other income of Consolidated Funds
|
8.6
|
|
13.0
|
|
||
Decrease in revenue from a real estate VIE
|
(16.4
|
)
|
(109.0
|
)
|
||
Total decrease
|
(14.8
|
)
|
(432.1
|
)
|
||
Total Revenues, June 30, 2018
|
$
|
893.6
|
|
$
|
1,596.4
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
2018 v. 2017
|
|||||
|
(Dollars in Millions)
|
|||||
Higher management fees from the commencement of the
investment period for certain newly raised funds |
$
|
88.6
|
|
$
|
124.7
|
|
Lower management fees resulting from the change in basis for
earning management fees from commitments to invested capital for certain funds and from distributions from funds whose management fees are based on invested capital |
(34.7
|
)
|
(49.8
|
)
|
||
Increase in catch-up management fees from subsequent closes of
funds that are in the fundraising period |
11.6
|
|
10.0
|
|
||
Higher (lower) transaction and portfolio advisory fees
|
0.9
|
|
(4.2
|
)
|
||
All other changes
|
(3.9
|
)
|
—
|
|
||
Total increase in fund management fees
|
$
|
62.5
|
|
$
|
80.7
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
2018 v. 2017
|
|||||
|
(Dollars in Millions)
|
|||||
Decrease in performance allocations, excluding NGP
|
$
|
(107.4
|
)
|
$
|
(475.3
|
)
|
Increase in investment income from NGP, which includes
performance allocations from the investments in NGP |
35.3
|
|
12.9
|
|
||
Absence in 2018 of investment expenses related to Q1 2017 amended
NGP agreements |
—
|
|
20.8
|
|
||
Decrease in investment income from our buyout and growth funds
|
(13.2
|
)
|
(8.3
|
)
|
||
Decrease in losses on foreign currency derivatives
|
2.6
|
|
1.7
|
|
||
Increase in investment income from our real assets funds, excluding NGP
|
3.1
|
|
3.8
|
|
||
Decrease in investment income from our distressed debt funds and energy
mezzanine funds |
(10.1
|
)
|
(11.2
|
)
|
||
Increase in investment income from CLOs
|
0.2
|
|
0.7
|
|
||
All other changes
|
1.3
|
|
6.6
|
|
||
Total decrease in investment income
|
$
|
(88.2
|
)
|
$
|
(448.3
|
)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||
|
2018
|
2017
|
|
2018
|
2017
|
||||||||
|
(Dollars in Millions)
|
||||||||||||
Corporate Private Equity
|
$
|
210.7
|
|
$
|
419.8
|
|
|
$
|
468.6
|
|
$
|
987.8
|
|
Real Assets
|
138.4
|
|
81.7
|
|
|
135.1
|
|
139.5
|
|
||||
Global Credit
|
12.3
|
|
2.5
|
|
|
14.9
|
|
16.9
|
|
||||
Investment Solutions
|
63.7
|
|
28.5
|
|
|
114.6
|
|
64.3
|
|
||||
Total performance allocations
|
$
|
425.1
|
|
$
|
532.5
|
|
|
$
|
733.2
|
|
$
|
1,208.5
|
|
|
|
|
|
|
|
||||||||
Total carry fund appreciation
|
5%
|
5%
|
|
9%
|
11%
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Total Expenses, June 30, 2017
|
$
|
705.4
|
|
$
|
1,514.9
|
|
Increases (Decreases):
|
|
|
||||
Decrease in total compensation and benefits
|
(33.2
|
)
|
(138.9
|
)
|
||
Increase in general, administrative and other expenses
|
31.0
|
|
32.2
|
|
||
Decrease in interest and other expenses of Consolidated Funds
|
(33.2
|
)
|
(42.5
|
)
|
||
Decrease in interest and other expenses of a real estate VIE
and loss on deconsolidation |
(18.4
|
)
|
(138.0
|
)
|
||
All other changes
|
2.1
|
|
5.3
|
|
||
Total decrease
|
(51.7
|
)
|
(281.9
|
)
|
||
Total Expenses, June 30, 2018
|
$
|
653.7
|
|
$
|
1,233.0
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
2018 v. 2017
|
|||||
|
(Dollars in Millions)
|
|||||
Increase in cash-based compensation and benefits
|
$
|
25.0
|
|
$
|
66.3
|
|
Decrease in equity-based compensation
|
(23.1
|
)
|
(11.0
|
)
|
||
Decrease in performance allocations and incentive fee related
compensation |
(35.1
|
)
|
(194.2
|
)
|
||
Total decrease in total compensation and benefits
|
$
|
(33.2
|
)
|
$
|
(138.9
|
)
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
2018 v. 2017
|
|||||
|
(Dollars in Millions)
|
|||||
Increase in headcount and bonuses
|
$
|
30.0
|
|
$
|
64.3
|
|
(Decrease) increase in compensation costs associated with
fundraising activities |
(5.0
|
)
|
2.0
|
|
||
Total increase in cash-based compensation and benefits
|
$
|
25.0
|
|
$
|
66.3
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
2018 v. 2017
|
|||||
|
(Dollars in Millions)
|
|||||
Lower expenses for litigation and contingencies
|
$
|
(104.2
|
)
|
(148.8
|
)
|
|
Absence in 2018 of net insurance recoveries recognized for certain legal
matters in 2017 |
103.3
|
|
138.6
|
|
||
Certain costs incurred on behalf of Carlyle funds, primarily travel and
entertainment costs, that are now presented on a gross basis as a result of the adoption of the new revenue recognition standard (See Note 2 to the unaudited condensed consolidated financial statements) |
8.2
|
|
14.3
|
|
||
Lower professional fees and office expenses
|
(0.5
|
)
|
(14.3
|
)
|
||
Higher external fundraising costs
|
22.4
|
|
27.6
|
|
||
Foreign exchange and other changes
|
1.8
|
|
14.8
|
|
||
Total increase in general, administrative and other expenses
|
$
|
31.0
|
|
$
|
32.2
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Realized losses
|
$
|
(1.6
|
)
|
|
$
|
(3.7
|
)
|
|
$
|
(4.3
|
)
|
|
$
|
(5.8
|
)
|
Net change in unrealized gains
|
(24.5
|
)
|
|
(1.9
|
)
|
|
(37.2
|
)
|
|
35.4
|
|
||||
Total gains (losses)
|
(26.1
|
)
|
|
(5.6
|
)
|
|
(41.5
|
)
|
|
29.6
|
|
||||
Gains from liabilities of CLOs
|
39.0
|
|
|
46.3
|
|
|
56.4
|
|
|
28.2
|
|
||||
Total investment gains of Consolidated Funds
|
$
|
12.9
|
|
|
$
|
40.7
|
|
|
$
|
14.9
|
|
|
$
|
57.8
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Total Segment Revenues
|
$
|
840.2
|
|
|
$
|
859.0
|
|
|
$
|
1,494.1
|
|
|
$
|
1,860.2
|
|
Total Segment Expenses
|
568.1
|
|
|
558.9
|
|
|
1,053.0
|
|
|
1,160.0
|
|
||||
Economic Income
|
$
|
272.1
|
|
|
$
|
300.1
|
|
|
$
|
441.1
|
|
|
$
|
700.2
|
|
(-) Net Performance Revenues
|
249.6
|
|
|
299.4
|
|
|
409.6
|
|
|
693.5
|
|
||||
(-) Principal Investment Income
|
25.3
|
|
|
31.2
|
|
|
54.9
|
|
|
41.8
|
|
||||
(+) Equity-based Compensation
|
50.0
|
|
|
36.7
|
|
|
87.7
|
|
|
66.8
|
|
||||
(+) Net Interest
|
10.6
|
|
|
14.0
|
|
|
21.7
|
|
|
25.6
|
|
||||
(=) Fee Related Earnings
|
$
|
57.8
|
|
|
$
|
20.2
|
|
|
$
|
86.0
|
|
|
$
|
57.3
|
|
(+) Realized Net Performance Revenues
|
49.6
|
|
|
182.1
|
|
|
152.7
|
|
|
217.4
|
|
||||
(+) Realized Principal Investment Income (Loss)
|
17.7
|
|
|
10.6
|
|
|
36.4
|
|
|
5.2
|
|
||||
(+) Net Interest
|
(10.6
|
)
|
|
(14.0
|
)
|
|
(21.7
|
)
|
|
(25.6
|
)
|
||||
(=) Distributable Earnings
|
$
|
114.5
|
|
|
$
|
198.9
|
|
|
$
|
253.4
|
|
|
$
|
254.3
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Segment Revenues
|
|
|
|
|
|
|
|
||||||||
Fund level fee revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
328.1
|
|
|
$
|
257.2
|
|
|
$
|
615.6
|
|
|
$
|
512.8
|
|
Portfolio advisory fees, net
|
3.2
|
|
|
4.9
|
|
|
6.8
|
|
|
8.9
|
|
||||
Transaction fees, net
|
3.8
|
|
|
1.2
|
|
|
6.8
|
|
|
8.9
|
|
||||
Total fund level fee revenues
|
335.1
|
|
|
263.3
|
|
|
629.2
|
|
|
530.6
|
|
||||
Performance revenues
|
|
|
|
|
|
|
|
||||||||
Realized
|
99.5
|
|
|
352.7
|
|
|
310.5
|
|
|
435.7
|
|
||||
Unrealized
|
370.0
|
|
|
206.6
|
|
|
476.4
|
|
|
838.3
|
|
||||
Total performance revenues
|
469.5
|
|
|
559.3
|
|
|
786.9
|
|
|
1,274.0
|
|
||||
Principal investment income (loss)
|
|
|
|
|
|
|
|
||||||||
Realized
|
17.7
|
|
|
10.6
|
|
|
36.4
|
|
|
5.2
|
|
||||
Unrealized
|
7.6
|
|
|
20.6
|
|
|
18.5
|
|
|
36.6
|
|
||||
Total principal investment income
|
25.3
|
|
|
31.2
|
|
|
54.9
|
|
|
41.8
|
|
||||
Interest income
|
7.9
|
|
|
2.4
|
|
|
14.6
|
|
|
5.8
|
|
||||
Other income
|
2.4
|
|
|
2.8
|
|
|
8.5
|
|
|
8.0
|
|
||||
Total Segment Revenues
|
$
|
840.2
|
|
|
$
|
859.0
|
|
|
$
|
1,494.1
|
|
|
$
|
1,860.2
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Segment Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
$
|
172.3
|
|
|
$
|
153.0
|
|
|
$
|
361.4
|
|
|
$
|
300.3
|
|
Equity-based compensation
|
50.0
|
|
|
36.7
|
|
|
87.7
|
|
|
66.8
|
|
||||
Performance revenues related compensation
|
|
|
|
|
|
|
|
||||||||
Realized
|
49.9
|
|
|
170.6
|
|
|
157.8
|
|
|
218.3
|
|
||||
Unrealized
|
170.0
|
|
|
89.3
|
|
|
219.5
|
|
|
362.2
|
|
||||
Total compensation and benefits
|
442.2
|
|
|
449.6
|
|
|
826.4
|
|
|
947.6
|
|
||||
General, administrative, and other indirect expenses
|
98.9
|
|
|
85.4
|
|
|
173.7
|
|
|
166.0
|
|
||||
Depreciation and amortization expense
|
8.5
|
|
|
7.5
|
|
|
16.6
|
|
|
15.0
|
|
||||
Interest expense
|
18.5
|
|
|
16.4
|
|
|
36.3
|
|
|
31.4
|
|
||||
Total Segment Expenses
|
$
|
568.1
|
|
|
$
|
558.9
|
|
|
$
|
1,053.0
|
|
|
$
|
1,160.0
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Income before provision for income taxes
|
$
|
252.8
|
|
|
$
|
243.7
|
|
|
$
|
378.3
|
|
|
$
|
571.4
|
|
Adjustments:
|
|
|
|
|
|
|
|
||||||||
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments
|
18.4
|
|
|
58.5
|
|
|
68.5
|
|
|
125.5
|
|
||||
Acquisition related charges, including amortization of intangibles and impairment
|
9.2
|
|
|
9.2
|
|
|
13.8
|
|
|
18.0
|
|
||||
Other non-operating expense
|
0.3
|
|
|
0.1
|
|
|
0.6
|
|
|
0.1
|
|
||||
Tax expense associated with performance fee compensation
|
3.8
|
|
|
(2.4
|
)
|
|
1.7
|
|
|
(5.3
|
)
|
||||
Net income attributable to non-controlling interests in consolidated entities
|
(16.7
|
)
|
|
(16.5
|
)
|
|
(27.7
|
)
|
|
(19.8
|
)
|
||||
Severance and other adjustments
|
4.3
|
|
|
7.5
|
|
|
5.9
|
|
|
10.3
|
|
||||
Economic Income
|
$
|
272.1
|
|
|
$
|
300.1
|
|
|
$
|
441.1
|
|
|
$
|
700.2
|
|
(-) Net performance revenues
(1)
|
249.6
|
|
|
299.4
|
|
|
409.6
|
|
|
693.5
|
|
||||
(-) Principal investment income
(1)
|
25.3
|
|
|
31.2
|
|
|
54.9
|
|
|
41.8
|
|
||||
(+) Equity-based compensation
|
50.0
|
|
|
36.7
|
|
|
87.7
|
|
|
66.8
|
|
||||
(+) Net Interest
|
10.6
|
|
|
14.0
|
|
|
21.7
|
|
|
25.6
|
|
||||
(=) Fee Related Earnings
|
$
|
57.8
|
|
|
$
|
20.2
|
|
|
$
|
86.0
|
|
|
$
|
57.3
|
|
(+) Realized net performance revenues
(1)
|
49.6
|
|
|
182.1
|
|
|
152.7
|
|
|
217.4
|
|
||||
(+) Realized principal investment income (loss)
(1)
|
17.7
|
|
|
10.6
|
|
|
36.4
|
|
|
5.2
|
|
||||
(+) Net Interest
|
(10.6
|
)
|
|
(14.0
|
)
|
|
(21.7
|
)
|
|
(25.6
|
)
|
||||
(=) Distributable Earnings
|
$
|
114.5
|
|
|
$
|
198.9
|
|
|
$
|
253.4
|
|
|
$
|
254.3
|
|
(1)
|
– See reconciliation to most directly comparable U.S. GAAP measure below:
|
|
Three Months Ended June 30, 2018
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments
(2)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
(a)
|
|
|
|
|
|
||||||
Realized
|
$
|
97.4
|
|
|
$
|
2.1
|
|
|
$
|
99.5
|
|
Unrealized
|
327.7
|
|
|
42.3
|
|
|
370.0
|
|
|||
Total performance revenues
(a)
|
425.1
|
|
|
44.4
|
|
|
469.5
|
|
|||
Performance revenues related compensation expense
(b)
|
|
|
|
|
|
||||||
Realized
|
51.7
|
|
|
(1.8
|
)
|
|
49.9
|
|
|||
Unrealized
|
170.3
|
|
|
(0.3
|
)
|
|
170.0
|
|
|||
Total performance revenues related compensation expense
(b)
|
222.0
|
|
|
(2.1
|
)
|
|
219.9
|
|
|||
Net performance revenues
|
|
|
|
|
|
||||||
Realized
|
45.7
|
|
|
3.9
|
|
|
49.6
|
|
|||
Unrealized
|
157.4
|
|
|
42.6
|
|
|
200.0
|
|
|||
Total net performance revenues
|
$
|
203.1
|
|
|
$
|
46.5
|
|
|
$
|
249.6
|
|
Principal investment income (loss)
|
|
|
|
|
|
||||||
Realized
|
$
|
36.3
|
|
|
$
|
(18.6
|
)
|
|
$
|
17.7
|
|
Unrealized
|
41.9
|
|
|
(34.3
|
)
|
|
7.6
|
|
|||
Principal investment income (loss)
|
$
|
78.2
|
|
|
$
|
(52.9
|
)
|
|
$
|
25.3
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2018
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments
(2)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
(a)
|
|
|
|
|
|
||||||
Realized
|
$
|
318.0
|
|
|
$
|
(7.5
|
)
|
|
$
|
310.5
|
|
Unrealized
|
415.2
|
|
|
61.2
|
|
|
476.4
|
|
|||
Total performance revenues
(a)
|
733.2
|
|
|
53.7
|
|
|
786.9
|
|
|||
Performance revenues related compensation expense
(b)
|
|
|
|
|
|
||||||
Realized
|
160.1
|
|
|
(2.3
|
)
|
|
157.8
|
|
|||
Unrealized
|
219.9
|
|
|
(0.4
|
)
|
|
219.5
|
|
|||
Total performance revenues related compensation expense
(b)
|
380.0
|
|
|
(2.7
|
)
|
|
377.3
|
|
|||
Net performance revenues
|
|
|
|
|
|
||||||
Realized
|
157.9
|
|
|
(5.2
|
)
|
|
152.7
|
|
|||
Unrealized
|
195.3
|
|
|
61.6
|
|
|
256.9
|
|
|||
Total net performance revenues
|
$
|
353.2
|
|
|
$
|
56.4
|
|
|
$
|
409.6
|
|
Principal investment income (loss)
|
|
|
|
|
|
||||||
Realized
|
$
|
63.8
|
|
|
$
|
(27.4
|
)
|
|
$
|
36.4
|
|
Unrealized
|
68.5
|
|
|
(50.0
|
)
|
|
18.5
|
|
|||
Principal investment income (loss)
|
$
|
132.3
|
|
|
$
|
(77.4
|
)
|
|
$
|
54.9
|
|
|
Three Months Ended June 30, 2017
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments
(2)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
(a)
|
|
|
|
|
|
||||||
Realized
|
$
|
346.6
|
|
|
$
|
6.1
|
|
|
$
|
352.7
|
|
Unrealized
|
185.9
|
|
|
20.7
|
|
|
206.6
|
|
|||
Total performance revenues
(a)
|
532.5
|
|
|
26.8
|
|
|
559.3
|
|
|||
Performance revenues related compensation expense
(b)
|
|
|
|
|
|
||||||
Realized
|
166.7
|
|
|
3.9
|
|
|
170.6
|
|
|||
Unrealized
|
90.4
|
|
|
(1.1
|
)
|
|
89.3
|
|
|||
Total performance revenues related compensation expense
(b)
|
257.1
|
|
|
2.8
|
|
|
259.9
|
|
|||
Net performance revenues
|
|
|
|
|
|
||||||
Realized
|
179.9
|
|
|
2.2
|
|
|
182.1
|
|
|||
Unrealized
|
95.5
|
|
|
21.8
|
|
|
117.3
|
|
|||
Total net performance revenues
|
$
|
275.4
|
|
|
$
|
24.0
|
|
|
$
|
299.4
|
|
Principal investment income (loss)
|
|
|
|
|
|
||||||
Realized
|
$
|
26.7
|
|
|
$
|
(16.1
|
)
|
|
$
|
10.6
|
|
Unrealized
|
32.3
|
|
|
(11.7
|
)
|
|
20.6
|
|
|||
Total principal investment income (loss)
|
$
|
59.0
|
|
|
$
|
(27.8
|
)
|
|
$
|
31.2
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2017
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments
(2)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
(a)
|
|
|
|
|
|
||||||
Realized
|
$
|
424.2
|
|
|
$
|
11.5
|
|
|
$
|
435.7
|
|
Unrealized
|
784.3
|
|
|
54.0
|
|
|
838.3
|
|
|||
Total performance revenues
(a)
|
1,208.5
|
|
|
65.5
|
|
|
1,274.0
|
|
|||
Performance revenues related compensation expense
(b)
|
|
|
|
|
|
||||||
Realized
|
212.5
|
|
|
5.8
|
|
|
218.3
|
|
|||
Unrealized
|
361.7
|
|
|
0.5
|
|
|
362.2
|
|
|||
Total performance revenues related compensation expense
(b)
|
574.2
|
|
|
6.3
|
|
|
580.5
|
|
|||
Net performance revenues
|
|
|
|
|
|
||||||
Realized
|
211.7
|
|
|
5.7
|
|
|
217.4
|
|
|||
Unrealized
|
422.6
|
|
|
53.5
|
|
|
476.1
|
|
|||
Total net performance revenues
|
$
|
634.3
|
|
|
$
|
59.2
|
|
|
$
|
693.5
|
|
Principal investment income (loss)
|
|
|
|
|
|
||||||
Realized
|
$
|
26.5
|
|
|
$
|
(21.3
|
)
|
|
$
|
5.2
|
|
Unrealized
|
78.8
|
|
|
(42.2
|
)
|
|
36.6
|
|
|||
Total principal investment income (loss)
|
$
|
105.3
|
|
|
$
|
(63.5
|
)
|
|
$
|
41.8
|
|
(2)
|
Adjustments to performance revenues and principal investment income (loss) relate to (i) amounts earned from the Consolidated Funds, which were eliminated in the U.S. GAAP consolidation but were included in the Non-GAAP results, (ii) amounts attributable to non-controlling interests in consolidated entities, which were excluded from the
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Economic Income
|
|
|
|
|
|
|
|
||||||||
Corporate Private Equity
|
$
|
100.4
|
|
|
$
|
241.8
|
|
|
$
|
214.0
|
|
|
$
|
555.2
|
|
Real Assets
|
144.1
|
|
|
50.7
|
|
|
175.4
|
|
|
110.1
|
|
||||
Global Credit
|
10.7
|
|
|
0.6
|
|
|
18.4
|
|
|
16.0
|
|
||||
Investment Solutions
|
16.9
|
|
|
7.0
|
|
|
33.3
|
|
|
18.9
|
|
||||
Economic Income
|
$
|
272.1
|
|
|
$
|
300.1
|
|
|
$
|
441.1
|
|
|
$
|
700.2
|
|
Distributable Earnings
|
|
|
|
|
|
|
|
||||||||
Corporate Private Equity
|
$
|
39.5
|
|
|
$
|
172.8
|
|
|
$
|
126.3
|
|
|
$
|
208.2
|
|
Real Assets
|
51.9
|
|
|
11.8
|
|
|
85.1
|
|
|
15.4
|
|
||||
Global Credit
|
14.6
|
|
|
8.9
|
|
|
24.8
|
|
|
16.7
|
|
||||
Investment Solutions
|
8.5
|
|
|
5.4
|
|
|
17.2
|
|
|
14.0
|
|
||||
Distributable Earnings
|
$
|
114.5
|
|
|
$
|
198.9
|
|
|
$
|
253.4
|
|
|
$
|
254.3
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Segment Revenues
|
|
|
|
|
|
|
|
||||||||
Fund level fee revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
148.0
|
|
|
$
|
117.7
|
|
|
$
|
262.1
|
|
|
$
|
233.4
|
|
Portfolio advisory fees, net
|
2.8
|
|
|
4.5
|
|
|
6.0
|
|
|
8.3
|
|
||||
Transaction fees, net
|
3.6
|
|
|
1.2
|
|
|
3.9
|
|
|
8.9
|
|
||||
Total fund level fee revenues
|
154.4
|
|
|
123.4
|
|
|
272.0
|
|
|
250.6
|
|
||||
Performance revenues
|
|
|
|
|
|
|
|
||||||||
Realized
|
52.0
|
|
|
272.1
|
|
|
240.0
|
|
|
323.4
|
|
||||
Unrealized
|
163.8
|
|
|
142.9
|
|
|
228.4
|
|
|
658.2
|
|
||||
Total performance revenues
|
215.8
|
|
|
415.0
|
|
|
468.4
|
|
|
981.6
|
|
||||
Principal investment income
|
|
|
|
|
|
|
|
||||||||
Realized
|
12.3
|
|
|
8.9
|
|
|
20.2
|
|
|
9.1
|
|
||||
Unrealized
|
(4.9
|
)
|
|
13.3
|
|
|
2.1
|
|
|
18.8
|
|
||||
Total principal investment income
|
7.4
|
|
|
22.2
|
|
|
22.3
|
|
|
27.9
|
|
||||
Interest income
|
2.5
|
|
|
0.8
|
|
|
4.5
|
|
|
1.9
|
|
||||
Other income
|
0.6
|
|
|
1.3
|
|
|
3.7
|
|
|
2.6
|
|
||||
Total revenues
|
380.7
|
|
|
562.7
|
|
|
770.9
|
|
|
1,264.6
|
|
||||
Segment Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
90.5
|
|
|
72.7
|
|
|
187.7
|
|
|
146.8
|
|
||||
Equity-based compensation
|
23.0
|
|
|
17.8
|
|
|
41.7
|
|
|
32.8
|
|
||||
Performance revenues related compensation
|
|
|
|
|
|
|
|
||||||||
Realized
|
24.0
|
|
|
121.6
|
|
|
114.7
|
|
|
147.7
|
|
||||
Unrealized
|
75.0
|
|
|
69.4
|
|
|
101.1
|
|
|
297.2
|
|
||||
Total compensation and benefits
|
212.5
|
|
|
281.5
|
|
|
445.2
|
|
|
624.5
|
|
||||
General, administrative, and other indirect expenses
|
56.5
|
|
|
28.4
|
|
|
89.4
|
|
|
63.4
|
|
||||
Depreciation and amortization expense
|
4.2
|
|
|
3.7
|
|
|
8.2
|
|
|
7.4
|
|
||||
Interest expense
|
7.1
|
|
|
7.3
|
|
|
14.1
|
|
|
14.1
|
|
||||
Total expenses
|
280.3
|
|
|
320.9
|
|
|
556.9
|
|
|
709.4
|
|
||||
Economic Income
|
$
|
100.4
|
|
|
$
|
241.8
|
|
|
$
|
214.0
|
|
|
$
|
555.2
|
|
(-) Net Performance Revenues
|
116.8
|
|
|
224.0
|
|
|
252.6
|
|
|
536.7
|
|
||||
(-) Principal Investment Income
|
7.4
|
|
|
22.2
|
|
|
22.3
|
|
|
27.9
|
|
||||
(+) Equity-based Compensation
|
23.0
|
|
|
17.8
|
|
|
41.7
|
|
|
32.8
|
|
||||
(+) Net Interest
|
4.6
|
|
|
6.5
|
|
|
9.6
|
|
|
12.2
|
|
||||
(=) Fee Related Earnings
|
$
|
3.8
|
|
|
$
|
19.9
|
|
|
$
|
(9.6
|
)
|
|
$
|
35.6
|
|
(+) Realized Net Performance Revenues
|
28.0
|
|
|
150.5
|
|
|
125.3
|
|
|
175.7
|
|
||||
(+) Realized Principal Investment Income
|
12.3
|
|
|
8.9
|
|
|
20.2
|
|
|
9.1
|
|
||||
(+) Net Interest
|
(4.6
|
)
|
|
(6.5
|
)
|
|
(9.6
|
)
|
|
(12.2
|
)
|
||||
(=) Distributable Earnings
|
$
|
39.5
|
|
|
$
|
172.8
|
|
|
$
|
126.3
|
|
|
$
|
208.2
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Distributable earnings, June 30, 2017
|
$
|
172.8
|
|
$
|
208.2
|
|
Increases (decreases):
|
|
|
||||
Decrease in fee related earnings
|
(16.1
|
)
|
(45.2
|
)
|
||
Decrease in realized net performance revenues
|
(122.5
|
)
|
(50.4
|
)
|
||
Increase in realized principal investment income
|
3.4
|
|
11.1
|
|
||
Decrease in net interest
|
1.9
|
|
2.6
|
|
||
Total decrease
|
(133.3
|
)
|
(81.9
|
)
|
||
Distributable earnings, June 30, 2018
|
$
|
39.5
|
|
$
|
126.3
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||
2018
|
2017
|
|
2018
|
2017
|
CBPF I
|
CP V
|
|
CEP III
|
CP V
|
CAP III
|
CAP III
|
|
CAP III
|
CAP III
|
CP V
|
CEP III
|
|
CBPF I
|
CEP III
|
|
|
|
CAP II
|
CGFSP
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Fee related earnings, June 30, 2017
|
$
|
19.9
|
|
$
|
35.6
|
|
Increases (decreases):
|
|
|
||||
Increase in fee revenues
|
31.0
|
|
21.4
|
|
||
Increase in cash-based compensation and benefits
|
(17.8
|
)
|
(40.9
|
)
|
||
Increase in general, administrative and other indirect expenses
|
(28.1
|
)
|
(26.0
|
)
|
||
All other changes
|
(1.2
|
)
|
0.3
|
|
||
Total decrease
|
(16.1
|
)
|
(45.2
|
)
|
||
Fee related earnings, June 30, 2018
|
$
|
3.8
|
|
$
|
(9.6
|
)
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
2018 v. 2017
|
|||||
|
(Dollars in Millions)
|
|||||
Higher fund management fees
|
$
|
30.3
|
|
$
|
28.7
|
|
Higher (lower) transaction fees
|
2.4
|
|
(5.0
|
)
|
||
Lower portfolio advisory fees
|
(1.7
|
)
|
(2.3
|
)
|
||
Total increase in fee revenues
|
$
|
31.0
|
|
$
|
21.4
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Economic income, June 30, 2017
|
$
|
241.8
|
|
$
|
555.2
|
|
Increases (decreases):
|
|
|
||||
Decrease in net performance revenues
|
(107.2
|
)
|
(284.1
|
)
|
||
Decrease in principal investment income
|
(14.8
|
)
|
(5.6
|
)
|
||
Increase in equity-based compensation
|
(5.2
|
)
|
(8.9
|
)
|
||
Decrease in fee related earnings
|
(16.1
|
)
|
(45.2
|
)
|
||
Decrease in net interest
|
1.9
|
|
2.6
|
|
||
Total decrease
|
(141.4
|
)
|
(341.2
|
)
|
||
Economic income, June 30, 2018
|
$
|
100.4
|
|
$
|
214.0
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Buyout funds
|
$
|
174.0
|
|
|
$
|
410.5
|
|
|
$
|
416.0
|
|
|
$
|
948.2
|
|
Growth Capital funds
|
41.8
|
|
|
4.5
|
|
|
52.4
|
|
|
33.4
|
|
||||
Total performance revenues
|
$
|
215.8
|
|
|
$
|
415.0
|
|
|
$
|
468.4
|
|
|
$
|
981.6
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||
|
2018
|
2017
|
|
2018
|
2017
|
Buyout funds
|
3%
|
9%
|
|
7%
|
19%
|
Growth Capital funds
|
3%
|
4%
|
|
5%
|
11%
|
Total
|
3%
|
8%
|
|
7%
|
18%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||
|
2018
|
2017
|
|
2018
|
2017
|
|
(Dollars in millions)
|
||||
Net Performance Revenues
|
$116.8
|
$224.0
|
|
$252.6
|
$536.7
|
|
|
|
|
|
|
Percentage of Total Performance Revenues
|
54%
|
54%
|
|
54%
|
55%
|
|
As of June 30,
|
||||||
|
2018
|
|
2017
|
||||
Corporate Private Equity
|
(Dollars in millions)
|
||||||
Components of Fee-earning AUM (1)
|
|
|
|
||||
Fee-earning AUM based on capital commitments
|
$
|
33,148
|
|
|
$
|
26,004
|
|
Fee-earning AUM based on invested capital
|
20,651
|
|
|
8,466
|
|
||
Fee-earning AUM based on lower of cost or fair value
|
2,511
|
|
|
1,746
|
|
||
Total Fee-earning AUM
|
$
|
56,310
|
|
|
$
|
36,216
|
|
Weighted Average Management Fee Rates (2)
|
|
|
|
||||
All Funds
|
1.22
|
%
|
|
1.31
|
%
|
||
Funds in Investment Period
|
1.46
|
%
|
|
1.44
|
%
|
(1)
|
For additional information concerning the components of Fee-earning AUM, see “—Fee-earning Assets under Management.”
|
(2)
|
Represents the aggregate effective management fee rate of each fund in the segment, weighted by each fund’s Fee-earning AUM, as of the end of each period presented.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Corporate Private Equity
|
(Dollars in millions)
|
|
(Dollars in millions)
|
||||||||||||
Fee-earning AUM Rollforward
|
|
|
|
|
|
|
|
||||||||
Balance, Beginning of Period
|
$
|
35,293
|
|
|
$
|
36,878
|
|
|
$
|
35,584
|
|
|
$
|
36,327
|
|
Inflows, including Fee-paying Commitments (1)
|
23,619
|
|
|
41
|
|
|
23,836
|
|
|
527
|
|
||||
Outflows, including Distributions (2)
|
(2,143
|
)
|
|
(1,046
|
)
|
|
(2,913
|
)
|
|
(1,132
|
)
|
||||
Market Appreciation/(Depreciation) (3)
|
(8
|
)
|
|
4
|
|
|
22
|
|
|
(9
|
)
|
||||
Foreign Exchange and other (4)
|
(451
|
)
|
|
339
|
|
|
(219
|
)
|
|
503
|
|
||||
Balance, End of Period
|
$
|
56,310
|
|
|
$
|
36,216
|
|
|
$
|
56,310
|
|
|
$
|
36,216
|
|
(1)
|
Inflows represent limited partner capital raised and capital invested by carry funds outside the original investment period.
|
(2)
|
Outflows represent distributions from funds outside the investment period and changes in fee basis for our carry funds where the original investment period has expired.
|
(3)
|
Market Appreciation/(Depreciation) represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the lower of cost or fair value.
|
(4)
|
Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of period end.
|
|
Three Months Ended June 30, 2018
|
|
Six Months Ended
June 30, 2018
|
||||
|
(Dollars in millions)
|
|
(Dollars in millions)
|
||||
Corporate Private Equity
|
|
|
|
||||
Total AUM Rollforward
|
|
|
|
||||
Balance, Beginning of Period
|
$
|
74,978
|
|
|
$
|
72,558
|
|
New Commitments (1)
|
8,733
|
|
|
12,666
|
|
||
Outflows (2)
|
(2,317
|
)
|
|
(5,541
|
)
|
||
Market Appreciation/(Depreciation) (3)
|
1,014
|
|
|
2,443
|
|
||
Foreign Exchange Gain/(Loss) (4)
|
(738
|
)
|
|
(403
|
)
|
||
Other (5)
|
(502
|
)
|
|
(555
|
)
|
||
Balance, End of Period
|
$
|
81,168
|
|
|
$
|
81,168
|
|
(1)
|
New Commitments reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects translation at the average quarterly rate, while the separately reported Fundraising metric is translated at the spot rate for each individual closing.
|
(2)
|
Outflows includes distributions in our carry funds, related co-investment vehicles and separately managed accounts.
|
(3)
|
Market Appreciation/(Depreciation) generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related co-investment vehicles and separately managed accounts.
|
(4)
|
Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.
|
(5)
|
Includes expiring available capital, the impact of capital calls for fees and expenses and other changes in AUM.
|
(1)
|
The data presented herein that provides “inception to date” performance results of our segments relates to the period following the formation of the first fund within each segment. For our Corporate Private Equity segment our first fund was formed in 1990.
|
(2)
|
Represents the original cost of investments since inception of the fund.
|
(3)
|
Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried interest.
|
(4)
|
Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest, divided by cumulative invested capital.
|
(5)
|
An investment is considered realized when the investment fund has completely exited, and ceases to own an interest in, the investment. An investment is considered partially realized when the total amount of proceeds received in respect of such investment, including dividends, interest or other distributions and/or return of capital, represents at least 85% of invested capital and such investment is not yet fully realized. Because part of our value creation strategy involves pursuing best exit
|
(6)
|
Fully Invested funds are past the expiration date of the investment period as defined in the respective limited partnership agreement. In instances where a successor fund has had its first capital call, the predecessor fund is categorized as fully invested.
|
(7)
|
Gross Internal Rate of Return (“Gross IRR”) represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value before management fees, expenses and carried interest.
|
(8)
|
Net Internal Rate of Return (“Net IRR”) represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value after management fees, expenses and carried interest. Fund level IRRs are based on aggregate Limited Partner cash flows, and this blended return may differ from that of individual Limited Partners. As a result, certain funds may generate accrued performance revenues with a blended Net IRR that is below the preferred return hurdle for that fund.
|
(9)
|
Aggregate includes the following funds: CP I, CMG, CVP I, CVP II, CUSGF III, CEVP, CETP I, CAVP I, CAVP II, CAGP III, CSABF, CPF I, Mexico, CBPF, and MENA.
|
(10)
|
Includes coinvestments and certain other stand-alone investments arranged by us.
|
(11)
|
Aggregate, which is considered not meaningful, includes the following funds and their respective commencement dates: CSSAF (April 2012) , CCI (December 2012), CETP III (May 2014), CAGP V (May 2016), CGFSP III (June 2017), and CBPF II (November 2017).
|
(12)
|
For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is negative as of reporting period end.
|
(13)
|
For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the reporting period spot rate.
|
|
Remaining
Fair Value(1) |
Unrealized
MOIC(2) |
Total
MOIC(3) |
%
Invested(4) |
In Accrued
Carry/ (Clawback) (5) |
LTM
Realized Carry (6) |
Catch-up
Rate |
Fee
Initiation Date(7) |
Quarters
Since Fee Initiation |
Original
Investment Period End Date |
||||
|
As of June 30, 2018
|
|
|
|
|
|||||||||
Corporate Private Equity
|
(Reported in Local Currency, in Millions)
|
|
|
|
|
|||||||||
CP VI
|
$
|
13,390.6
|
|
1.3x
|
1.4x
|
97
|
%
|
X
|
|
100
|
%
|
Jun-13
|
21
|
May-18
|
CAP IV
|
$
|
5,022.9
|
|
1.4x
|
1.5x
|
102
|
%
|
X
|
|
100
|
%
|
Jul-13
|
20
|
Nov-18
|
CEP IV
|
€
|
3,424.7
|
|
1.3x
|
1.4x
|
84
|
%
|
X
|
|
100
|
%
|
Sep-14
|
16
|
Aug-19
|
CGP
|
$
|
2,841.3
|
|
1.1x
|
1.1x
|
71
|
%
|
X
|
|
100
|
%
|
Jan-15
|
14
|
Dec-20
|
CP V
|
$
|
2,734.5
|
|
0.7x
|
2.1x
|
96
|
%
|
X
|
X
|
100
|
%
|
Jun-07
|
45
|
May-13
|
CEOF II
|
$
|
1,293.3
|
|
1.2x
|
1.2x
|
49
|
%
|
|
|
80
|
%
|
Nov-15
|
11
|
Mar-21
|
CEP III
|
€
|
740.2
|
|
1.1x
|
2.3x
|
97
|
%
|
X
|
X
|
100
|
%
|
Jul-07
|
44
|
Dec-12
|
CJP III
|
¥
|
91,530.6
|
|
1.9x
|
2.2x
|
50
|
%
|
X
|
|
100
|
%
|
Sep-13
|
20
|
Feb-20
|
CEOF I
|
$
|
791.8
|
|
1.0x
|
1.4x
|
104
|
%
|
X
|
|
80
|
%
|
Sep-11
|
28
|
May-17
|
CGFSP II
|
$
|
786.4
|
|
1.3x
|
1.5x
|
94
|
%
|
X
|
X
|
100
|
%
|
Jun-13
|
21
|
Dec-17
|
CAP III
|
$
|
757.4
|
|
1.5x
|
1.8x
|
100
|
%
|
X
|
X
|
100
|
%
|
Jun-08
|
41
|
May-14
|
CP IV
|
$
|
276.1
|
|
2.9x
|
2.4x
|
97
|
%
|
X
|
|
80
|
%
|
Apr-05
|
53
|
Dec-10
|
CJP II
|
¥
|
17,235.0
|
|
1.1x
|
1.5x
|
86
|
%
|
|
|
80
|
%
|
Oct-06
|
47
|
Jul-12
|
All Other Funds (8)
|
$
|
3,368.8
|
|
1.1x
|
2.1x
|
|
NM
|
NM
|
|
|
|
|
||
Coinvestment and Other (9)
|
$
|
4,608.1
|
|
1.1x
|
2.2x
|
|
|
NM
|
NM
|
|
|
|
|
|
Total Corporate Private Equity (10)
|
$
|
41,716.2
|
|
1.2x
|
1.9x
|
|
|
|
|
|
|
|
(1)
|
Remaining Fair Value reflects the unrealized carrying value of investments for Corporate Private Equity, Real Assets and Global Credit carry funds and related co-investment vehicles. Significant funds with remaining fair value of greater than $100 million are listed individually.
|
(2)
|
Unrealized multiple of invested capital (“MOIC”) represents remaining fair market value, before management fees, expenses and carried interest, divided by remaining investment cost.
|
(3)
|
Total MOIC represents total fair value (realized proceeds combined with remaining fair value), before management fees, expenses and carried interest, divided by cumulative invested capital. For certain funds, represents the original cost of investments net of investment-level recallable proceeds, which is adjusted to reflect recyclability of invested capital for the purpose of calculating the fund MOIC.
|
(4)
|
Represents cumulative invested capital as of the reporting period divided by total commitments. Amount can be greater than 100% due to the re-investment of recallable distributions to fund investors.
|
(5)
|
Fund has a net accrued performance revenue balance/(giveback obligation) as of the current quarter end, driven by a significant portion of the fund’s asset base.
|
(6)
|
Fund has generated realized net performance revenues/(realized giveback) in the last twelve months.
|
(7)
|
Represents the date of the first capital contribution for management fees.
|
(8)
|
Aggregate includes the following funds: CMG, CP I, CP II, CP III, CP VII,. CEP I, CEP II, CAP I, CAP II, CBPF, CBPF II, CJP I, CEVP, CETP I, CETP II, CETP III, CCI, CAVP I, CAVP II, CAGP III, CAGP IV, CAGP V, Mexico, MENA, CSABF, CSSAF, CPF, CGFSP I, CGFSP III, CVP I, CVP II, and CUSGF III. In Accrued Carry/(Clawback) and LTM Realized Carry not indicated because the indicator does not apply to each fund within the aggregate.
|
(9)
|
Includes co-investments, prefund investments and certain other stand-alone investments arranged by us. In Accrued Carry/(Clawback) and LTM Realized Carry not indicated because the indicator does not apply to each fund within the aggregate.
|
(10)
|
For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the reporting period spot rate.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Segment Revenues
|
|
|
|
|
|
|
|
||||||||
Fund level fee revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
78.7
|
|
|
$
|
58.2
|
|
|
$
|
153.1
|
|
|
$
|
114.2
|
|
Portfolio advisory fees, net
|
0.4
|
|
|
0.1
|
|
|
0.7
|
|
|
0.2
|
|
||||
Transaction fees, net
|
0.1
|
|
|
—
|
|
|
2.8
|
|
|
—
|
|
||||
Total fund level fee revenues
|
79.2
|
|
|
58.3
|
|
|
156.6
|
|
|
114.4
|
|
||||
Performance revenues
|
|
|
|
|
|
|
|
||||||||
Realized
|
33.6
|
|
|
39.7
|
|
|
41.4
|
|
|
53.2
|
|
||||
Unrealized
|
143.0
|
|
|
60.6
|
|
|
145.4
|
|
|
139.3
|
|
||||
Total performance revenues
|
176.6
|
|
|
100.3
|
|
|
186.8
|
|
|
192.5
|
|
||||
Principal investment income (loss)
|
|
|
|
|
|
|
|
||||||||
Realized
|
3.1
|
|
|
0.3
|
|
|
11.3
|
|
|
(7.8
|
)
|
||||
Unrealized
|
11.9
|
|
|
6.8
|
|
|
12.8
|
|
|
12.0
|
|
||||
Total principal investment income (loss)
|
15.0
|
|
|
7.1
|
|
|
24.1
|
|
|
4.2
|
|
||||
Interest income
|
1.2
|
|
|
0.4
|
|
|
2.1
|
|
|
1.0
|
|
||||
Other income
|
0.7
|
|
|
0.3
|
|
|
1.9
|
|
|
0.7
|
|
||||
Total revenues
|
272.7
|
|
|
166.4
|
|
|
371.5
|
|
|
312.8
|
|
||||
Segment Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
29.3
|
|
|
37.3
|
|
|
64.0
|
|
|
67.9
|
|
||||
Equity-based compensation
|
15.9
|
|
|
9.3
|
|
|
26.0
|
|
|
18.1
|
|
||||
Performance revenues related compensation
|
|
|
|
|
|
|
|
||||||||
Realized
|
15.0
|
|
|
17.4
|
|
|
19.0
|
|
|
24.2
|
|
||||
Unrealized
|
46.8
|
|
|
19.2
|
|
|
41.9
|
|
|
38.5
|
|
||||
Total compensation and benefits
|
107.0
|
|
|
83.2
|
|
|
150.9
|
|
|
148.7
|
|
||||
General, administrative, and other indirect expenses
|
15.9
|
|
|
26.5
|
|
|
34.0
|
|
|
42.1
|
|
||||
Depreciation and amortization expense
|
1.6
|
|
|
1.6
|
|
|
3.2
|
|
|
3.4
|
|
||||
Interest expense
|
4.1
|
|
|
4.4
|
|
|
8.0
|
|
|
8.5
|
|
||||
Total expenses
|
128.6
|
|
|
115.7
|
|
|
196.1
|
|
|
202.7
|
|
||||
Economic Income
|
$
|
144.1
|
|
|
$
|
50.7
|
|
|
$
|
175.4
|
|
|
$
|
110.1
|
|
(-) Net Performance Revenues
|
114.8
|
|
|
63.7
|
|
|
125.9
|
|
|
129.8
|
|
||||
(-) Principal Investment Income (Loss)
|
15.0
|
|
|
7.1
|
|
|
24.1
|
|
|
4.2
|
|
||||
(+) Equity-based Compensation
|
15.9
|
|
|
9.3
|
|
|
26.0
|
|
|
18.1
|
|
||||
(+) Net Interest
|
2.9
|
|
|
4.0
|
|
|
5.9
|
|
|
7.5
|
|
||||
(=) Fee Related Earnings
|
$
|
33.1
|
|
|
$
|
(6.8
|
)
|
|
$
|
57.3
|
|
|
$
|
1.7
|
|
(+) Realized Net Performance Revenues
|
18.6
|
|
|
22.3
|
|
|
22.4
|
|
|
29.0
|
|
||||
(+) Realized Principal Investment Income (Loss)
|
3.1
|
|
|
0.3
|
|
|
11.3
|
|
|
(7.8
|
)
|
||||
(+) Net Interest
|
(2.9
|
)
|
|
(4.0
|
)
|
|
(5.9
|
)
|
|
(7.5
|
)
|
||||
(=) Distributable Earnings
|
$
|
51.9
|
|
|
$
|
11.8
|
|
|
$
|
85.1
|
|
|
$
|
15.4
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|
||||
Distributable earnings, June 30, 2017
|
$
|
11.8
|
|
$
|
15.4
|
|
Increases (decreases):
|
|
|
||||
Increase in fee related earnings
|
39.9
|
|
55.6
|
|
||
Decrease in realized net performance revenues
|
(3.7
|
)
|
(6.6
|
)
|
||
Increase in realized principal investment income
|
2.8
|
|
19.1
|
|
||
Decrease in net interest
|
1.1
|
|
1.6
|
|
||
Total increase
|
40.1
|
|
69.7
|
|
||
Distributable earnings, June 30, 2018
|
$
|
51.9
|
|
$
|
85.1
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Fee related earnings, June 30, 2017
|
$
|
(6.8
|
)
|
$
|
1.7
|
|
Increases (decreases):
|
|
|
||||
Increase in fee revenues
|
20.9
|
|
42.2
|
|
||
Decrease in cash-based compensation and benefits
|
8.0
|
|
3.9
|
|
||
Decrease in general, administrative and other indirect expenses
|
10.6
|
|
8.1
|
|
||
All other changes
|
0.4
|
|
1.4
|
|
||
Total increase
|
39.9
|
|
55.6
|
|
||
Fee related earnings, June 30, 2018
|
$
|
33.1
|
|
$
|
57.3
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
2018 v. 2017
|
|||||
|
(Dollars in Millions)
|
|||||
Higher fund management fees
|
$
|
20.5
|
|
$
|
38.9
|
|
Higher transaction fees
|
0.1
|
|
2.8
|
|
||
Higher portfolio advisory fees
|
0.3
|
|
0.5
|
|
||
Total increase in fee revenues
|
$
|
20.9
|
|
$
|
42.2
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Economic income, June 30, 2017
|
$
|
50.7
|
|
$
|
110.1
|
|
Increases (decreases):
|
|
|
||||
Increase (decrease) in net performance revenues
|
51.1
|
|
(3.9
|
)
|
||
Increase in principal investment income
|
7.9
|
|
19.9
|
|
||
Increase in equity-based compensation
|
(6.6
|
)
|
(7.9
|
)
|
||
Increase in fee related earnings
|
39.9
|
|
55.6
|
|
||
Decrease in net interest
|
1.1
|
|
1.6
|
|
||
Total increase
|
93.4
|
|
65.3
|
|
||
Economic income, June 30, 2018
|
$
|
144.1
|
|
$
|
175.4
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Real Estate funds
|
$
|
88.6
|
|
|
$
|
77.0
|
|
|
$
|
76.0
|
|
|
$
|
131.3
|
|
Natural Resources funds
|
88.2
|
|
|
23.5
|
|
|
110.9
|
|
|
60.9
|
|
||||
Legacy Energy funds
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
0.3
|
|
||||
Total performance revenues
|
$
|
176.6
|
|
|
$
|
100.3
|
|
|
$
|
186.8
|
|
|
$
|
192.5
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||
|
2018
|
2017
|
|
2018
|
2017
|
Real Estate funds
|
5%
|
6%
|
|
6%
|
11%
|
Natural Resources funds
|
9%
|
6%
|
|
13%
|
15%
|
Legacy Energy funds
|
4%
|
4%
|
|
6%
|
7%
|
Total
|
7%
|
6%
|
|
9%
|
11%
|
|
As of June 30,
|
||||||
|
2018
|
|
2017
|
||||
Real Assets
|
(Dollars in millions)
|
||||||
Components of Fee-earning AUM (1)
|
|
|
|
||||
Fee-earning AUM based on capital commitments
|
$
|
12,780
|
|
|
$
|
13,063
|
|
Fee-earning AUM based on invested capital (2)
|
17,276
|
|
|
12,345
|
|
||
Fee-earning AUM based on net asset value
|
1,109
|
|
|
509
|
|
||
Fee-earning AUM based on lower of cost or fair value and other (3)
|
376
|
|
|
319
|
|
||
Total Fee-earning AUM (4)
|
$
|
31,541
|
|
|
$
|
26,236
|
|
Weighted Average Management Fee Rates (5)
|
|
|
|
||||
All Funds
|
1.23
|
%
|
|
1.24
|
%
|
||
Funds in Investment Period
|
1.32
|
%
|
|
1.43
|
%
|
(1)
|
For additional information concerning the components of Fee-earning AUM, See “—Fee-earning Assets under Management.”
|
(2)
|
Includes amounts committed to or reserved for investments for certain real estate funds.
|
(3)
|
Includes certain funds that are calculated on gross asset value.
|
(4)
|
Energy II, Energy III, Energy IV, and Renew II (collectively, the “Legacy Energy Funds”), are managed with Riverstone Holdings LLC and its affiliates. Affiliates of both Carlyle and Riverstone act as investment advisers to each of the Legacy Energy Funds. Carlyle has a minority representation on the management committees of Energy IV and Renew II. Carlyle and Riverstone each hold half of the seats on the management committees of Energy II and Energy III, but the investment period for these funds has expired and the remaining investments in such funds are being disposed of in the ordinary course of business. As of
June 30, 2018
, the Legacy Energy Funds had, in the aggregate, approximately
$4.9 billion
in AUM and
$3.4 billion
in Fee-earning AUM. We are no longer raising capital for the Legacy Energy Funds and expect these balances to continue to decrease over time as the funds wind down. NGP VII, NGP VIII, NGP IX, or in the case of NGP M&R, NGP ETP I, and NGP ETP II, certain affiliated entities (collectively, the “NGP management fee funds”) and NGP X, NGP GAP, NGP XI, and NGP XII (referred to herein as “carry funds”), are managed by NGP Energy Capital Management. As of
June 30, 2018
, the NGP management fee funds and carry funds had, in the aggregate, approximately
$14.0 billion
in AUM and
$11.4 billion
in Fee-earning AUM.
|
(5)
|
Represents the aggregate effective management fee rate of each fund in the segment, weighted by each fund’s Fee-earning AUM, as of the end of each period presented. Calculation reflects Carlyle’s 10% interest in management fees earned by the Legacy Energy funds and 55% interest in management fees earned by the NGP management fee funds and carry funds. Accounts based on gross asset base generally have an effective management fee rate of 0.5% or less.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Real Assets
|
(Dollars in millions)
|
|
(Dollars in millions)
|
||||||||||||
Fee-earning AUM Rollforward
|
|
|
|
|
|
|
|
||||||||
Balance, Beginning of Period
|
$
|
32,134
|
|
|
$
|
27,157
|
|
|
$
|
31,599
|
|
|
$
|
27,487
|
|
Inflows, including Fee-paying Commitments (1)
|
637
|
|
|
286
|
|
|
1,645
|
|
|
471
|
|
||||
Outflows, including Distributions (2)
|
(1,171
|
)
|
|
(1,272
|
)
|
|
(1,605
|
)
|
|
(1,838
|
)
|
||||
Market Appreciation/(Depreciation) (3)
|
19
|
|
|
7
|
|
|
47
|
|
|
25
|
|
||||
Foreign Exchange and other (4)
|
(78
|
)
|
|
58
|
|
|
(145
|
)
|
|
91
|
|
||||
Balance, End of Period
|
$
|
31,541
|
|
|
$
|
26,236
|
|
|
$
|
31,541
|
|
|
$
|
26,236
|
|
(1)
|
Inflows represent limited partner capital raised and capital invested by funds outside the investment period.
|
(2)
|
Outflows represent distributions from funds outside the investment period and changes in fee basis for our carry funds where the investment period has expired.
|
(3)
|
Market Appreciation/(Depreciation) represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the lower of cost or fair value and net asset value.
|
(4)
|
Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.
|
|
Three Months Ended
June 30, 2018
|
|
Six Months Ended
June 30, 2018
|
||||
|
(Dollars in millions)
|
|
(Dollars in millions)
|
||||
Real Assets
|
|
|
|
||||
Total AUM Rollforward
|
|
|
|
||||
Balance, Beginning of Period
|
$
|
44,028
|
|
|
$
|
42,888
|
|
New Commitments (1)
|
721
|
|
|
1,973
|
|
||
Outflows (2)
|
(1,078
|
)
|
|
(2,122
|
)
|
||
Market Appreciation/(Depreciation) (3)
|
1,873
|
|
|
2,340
|
|
||
Foreign Exchange Gain/(Loss) (4)
|
(84
|
)
|
|
(85
|
)
|
||
Other (5)
|
(42
|
)
|
|
424
|
|
||
Balance, End of Period
|
$
|
45,418
|
|
|
$
|
45,418
|
|
(1)
|
New Commitments reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects translation at the average quarterly rate, while the separately reported Fundraising metric is translated at the spot rate for each individual closing.
|
(2)
|
Outflows includes distributions in our carry funds and related co-investment vehicles, NGP management fee funds and separately managed accounts.
|
(3)
|
Market Appreciation/(Depreciation) generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds and related co-investment vehicles, the NGP management fee funds and separately managed accounts.
|
(4)
|
Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.
|
(5)
|
Includes expiring available capital, the impact of capital calls for fees and expenses and other changes in AUM.
|
(1)
|
The data presented herein that provides “inception to date” performance results of our segments relates to the period following the formation of the first fund within each segment. For our Corporate Private Equity segment our first fund was formed in 1990. For our Real Assets segment our first fund was formed in 1997.
|
(2)
|
Represents the original cost of investments since inception of the fund.
|
(3)
|
Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried interest.
|
(4)
|
Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest, divided by cumulative invested capital.
|
(5)
|
An investment is considered realized when the investment fund has completely exited, and ceases to own an interest in, the investment. An investment is considered partially realized when the total amount of proceeds received in respect of such investment, including dividends, interest or other distributions and/or return of capital, represents at least 85% of invested capital and such investment is not yet fully realized. Because part of our value creation strategy involves pursuing best exit alternatives, we believe information regarding Realized/Partially Realized MOIC and Gross IRR, when considered together with the other investment performance metrics presented, provides investors with meaningful information regarding our investment performance by removing the impact of investments where significant realization activity has not yet occurred. Realized/Partially Realized MOIC and Gross IRR have limitations as measures of investment performance, and should not be considered in isolation. Such limitations include the fact that these measures do not include the performance of earlier stage and other investments that do not satisfy the criteria provided above. The exclusion of such investments will have a positive impact on Realized/Partially Realized MOIC and Gross IRR in instances when the MOIC and Gross IRR in respect of such investments are less than the aggregate MOIC and Gross IRR. Our measurements of Realized/Partially Realized MOIC and Gross IRR may not be comparable to those of other companies that use similarly titled measures. We do not present Realized/Partially Realized performance information separately for funds that are still in the investment period because of the relatively
|
(6)
|
Fully Invested funds are past the expiration date of the investment period as defined in the respective limited partnership agreement. In instances where a successor fund has had its first capital call, the predecessor fund is categorized as fully invested.
|
(7)
|
Gross Internal Rate of Return (“Gross IRR”) represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value before management fees, expenses and carried interest.
|
(8)
|
Net Internal Rate of Return (“Net IRR”) represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value after management fees, expenses and carried interest. Fund level IRRs are based on aggregate Limited Partner cash flows, and this blended return may differ from that of individual Limited Partners. As a result, certain funds may generate accrued performance revenues with a blended Net IRR that is below the preferred return hurdle for that fund.
|
(9)
|
Aggregate includes the following funds: CRP I, CRP II, CAREP I, CAREP II, CRCP I, CPOCP, Renew I and Energy I.
|
(10)
|
Includes coinvestments and certain other stand-alone investments arranged by us.
|
(11)
|
Aggregate includes NGP GAP, CCR, and CER. Return is not considered meaningful, as the investment period commenced in December 2013 for NGP GAP, October 2016 for CCR, and December 2017 for CER.
|
(12)
|
For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is negative as of reporting period end.
|
(13)
|
For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the reporting period spot rate.
|
|
Remaining
Fair Value(1) |
Unrealized
MOIC(2) |
Total
MOIC(3) |
%
Invested(4) |
In Accrued
Carry/ (Clawback) (5) |
LTM
Realized Carry (6) |
Catch-up Rate
|
Fee
Initiation Date(7) |
Quarters
Since Fee Initiation |
Original
Investment Period End Date |
||||
|
|
As of June 30, 2018
|
|
|
|
|
||||||||
Real Assets
|
|
(Reported in Local Currency, in Millions)
|
|
|
|
|
||||||||
NGP XI
|
$
|
5,917.3
|
|
1.5x
|
1.5x
|
82
|
%
|
X
|
|
80
|
%
|
Feb-15
|
14
|
Oct-19
|
CRP VII
|
$
|
3,739.3
|
|
1.3x
|
1.4x
|
83
|
%
|
X
|
X
|
80
|
%
|
Jun-14
|
17
|
Mar-19
|
Energy IV
|
$
|
2,606.0
|
|
0.9x
|
1.3x
|
105
|
%
|
(X)
|
|
80
|
%
|
Feb-08
|
42
|
Dec-13
|
CIEP I
|
$
|
2,163.2
|
|
1.6x
|
1.6x
|
55
|
%
|
X
|
|
80
|
%
|
Oct-13
|
19
|
Sep-19
|
NGP X
|
$
|
1,873.3
|
|
1.1x
|
1.3x
|
91
|
%
|
|
|
80
|
%
|
Jan-12
|
26
|
May-17
|
Renew II
|
$
|
1,670.9
|
|
0.8x
|
1.5x
|
83
|
%
|
(X)
|
|
80
|
%
|
Mar-08
|
42
|
May-14
|
CRP V
|
$
|
1,257.6
|
|
2.1x
|
1.7x
|
114
|
%
|
X
|
|
50
|
%
|
Nov-06
|
47
|
Nov-11
|
CPI
|
$
|
1,220.9
|
|
1.1x
|
1.1x
|
n/a
|
|
X
|
|
50
|
%
|
May-16
|
9
|
Apr-21
|
CRP VI
|
$
|
739.0
|
|
1.3x
|
1.8x
|
95
|
%
|
X
|
X
|
50
|
%
|
Mar-11
|
30
|
Mar-16
|
CPP II
|
$
|
661.1
|
|
1.2x
|
1.2x
|
42
|
%
|
|
|
80
|
%
|
Sep-14
|
16
|
Apr-21
|
NGP XII
|
$
|
655.4
|
|
1.1x
|
1.1x
|
19
|
%
|
|
|
80
|
%
|
Nov-17
|
3
|
Oct-19
|
CRP IV
|
$
|
584.8
|
|
3.8x
|
1.6x
|
134
|
%
|
|
|
50
|
%
|
Jan-05
|
54
|
Dec-09
|
CRP VIII
|
$
|
490.9
|
|
1.0x
|
1.0x
|
9
|
%
|
|
|
80
|
%
|
Aug-17
|
4
|
May-22
|
CRP III
|
$
|
452.0
|
|
136.5x
|
3.5x
|
93
|
%
|
X
|
X
|
50
|
%
|
Mar-01
|
70
|
May-05
|
Energy III
|
$
|
278.0
|
|
0.4x
|
1.5x
|
94
|
%
|
(X)
|
|
80
|
%
|
Nov-05
|
51
|
Oct-11
|
CEREP III
|
€
|
133.5
|
|
1.0x
|
1.2x
|
92
|
%
|
|
|
67
|
%
|
Jun-07
|
45
|
May-11
|
All Other Funds (8)
|
$
|
681.8
|
|
0.8x
|
1.3x
|
|
NM
|
NM
|
|
|
|
|
||
Coinvestment and Other (9)
|
$
|
2,760.7
|
|
1.2x
|
1.7x
|
|
NM
|
NM
|
|
|
|
|
||
Total Real Assets (10)
|
$
|
27,908.1
|
|
1.2x
|
1.5x
|
|
|
|
|
|
|
|
(1)
|
Remaining Fair Value reflects the unrealized carrying value of investments for Corporate Private Equity, Real Assets and Global Credit carry funds and related co-investment vehicles. Significant funds with remaining fair value of greater than $100 million are listed individually.
|
(2)
|
Unrealized multiple of invested capital (“MOIC”) represents remaining fair market value, before management fees, expenses and carried interest, divided by remaining investment cost.
|
(3)
|
Total MOIC represents total fair value (realized proceeds combined with remaining fair value), before management fees, expenses and carried interest, divided by cumulative invested capital. For certain funds, represents the original cost of investments net of investment-level recallable proceeds, which is adjusted to reflect recyclability of invested capital for the purpose of calculating the fund MOIC.
|
(4)
|
Represents cumulative invested capital as of the reporting period divided by total commitments. Amount can be greater than 100% due to the re-investment of recallable distributions to fund investors.
|
(5)
|
Fund has a net accrued performance revenue balance/(giveback obligation) as of the current quarter end, driven by a significant portion of the fund’s asset base.
|
(6)
|
Fund has generated realized net performance revenues/(realized giveback) in the last twelve months.
|
(7)
|
Represents the date of the first capital contribution for management fees.
|
(8)
|
Aggregate includes the following funds: CRP I, CRP II, CRCP I, CEREP I, CEREP II, CER, CAREP I, CAREP II, CCR, CPOCP, CGIOF, NGP GAP, Energy I, Energy II and Renew I. In Accrued Carry/(Clawback) and LTM Realized Carry not indicated because the indicator does not apply to each fund within the aggregate.
|
(9)
|
Includes co-investments, prefund investments and certain other stand-alone investments arranged by us. In Accrued Carry/(Clawback) and LTM Realized Carry not indicated because the indicator does not apply to each fund within the aggregate.
|
(10)
|
For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the reporting period spot rate.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Segment Revenues
|
|
|
|
|
|
|
|
||||||||
Fund level fee revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
59.8
|
|
|
$
|
45.1
|
|
|
$
|
118.5
|
|
|
$
|
93.2
|
|
Portfolio advisory fees, net
|
—
|
|
|
0.3
|
|
|
0.1
|
|
|
0.4
|
|
||||
Transaction fees, net
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Total fund level fee revenues
|
59.9
|
|
|
45.4
|
|
|
118.7
|
|
|
93.6
|
|
||||
Performance revenues
|
|
|
|
|
|
|
|
||||||||
Realized
|
4.7
|
|
|
17.2
|
|
|
5.8
|
|
|
22.8
|
|
||||
Unrealized
|
8.8
|
|
|
(1.6
|
)
|
|
11.4
|
|
|
12.9
|
|
||||
Total performance revenues
|
13.5
|
|
|
15.6
|
|
|
17.2
|
|
|
35.7
|
|
||||
Principal investment income
|
|
|
|
|
|
|
|
||||||||
Realized
|
2.4
|
|
|
1.5
|
|
|
4.9
|
|
|
3.9
|
|
||||
Unrealized
|
(1.7
|
)
|
|
0.1
|
|
|
0.3
|
|
|
4.3
|
|
||||
Total principal investment income
|
0.7
|
|
|
1.6
|
|
|
5.2
|
|
|
8.2
|
|
||||
Interest income
|
3.9
|
|
|
1.0
|
|
|
7.2
|
|
|
2.6
|
|
||||
Other income
|
1.0
|
|
|
1.1
|
|
|
2.6
|
|
|
4.5
|
|
||||
Total revenues
|
79.0
|
|
|
64.7
|
|
|
150.9
|
|
|
144.6
|
|
||||
Segment Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
30.5
|
|
|
22.8
|
|
|
64.5
|
|
|
46.5
|
|
||||
Equity-based compensation
|
7.1
|
|
|
7.5
|
|
|
13.0
|
|
|
11.8
|
|
||||
Performance revenues related compensation
|
|
|
|
|
|
|
|
||||||||
Realized
|
2.1
|
|
|
8.2
|
|
|
2.7
|
|
|
10.9
|
|
||||
Unrealized
|
3.9
|
|
|
(0.7
|
)
|
|
5.1
|
|
|
6.1
|
|
||||
Total compensation and benefits
|
43.6
|
|
|
37.8
|
|
|
85.3
|
|
|
75.3
|
|
||||
General, administrative, and other indirect expenses
|
17.3
|
|
|
21.8
|
|
|
33.1
|
|
|
45.0
|
|
||||
Depreciation and amortization expense
|
1.6
|
|
|
1.3
|
|
|
3.0
|
|
|
2.5
|
|
||||
Interest expense
|
5.8
|
|
|
3.2
|
|
|
11.1
|
|
|
5.8
|
|
||||
Total expenses
|
68.3
|
|
|
64.1
|
|
|
132.5
|
|
|
128.6
|
|
||||
Economic Income
|
$
|
10.7
|
|
|
$
|
0.6
|
|
|
$
|
18.4
|
|
|
$
|
16.0
|
|
(-) Net Performance Revenues
|
7.5
|
|
|
8.1
|
|
|
9.4
|
|
|
18.7
|
|
||||
(-) Principal Investment Income
|
0.7
|
|
|
1.6
|
|
|
5.2
|
|
|
8.2
|
|
||||
(+) Equity-based Compensation
|
7.1
|
|
|
7.5
|
|
|
13.0
|
|
|
11.8
|
|
||||
(+) Net Interest
|
1.9
|
|
|
2.2
|
|
|
3.9
|
|
|
3.2
|
|
||||
(=) Fee Related Earnings
|
$
|
11.5
|
|
|
$
|
0.6
|
|
|
$
|
20.7
|
|
|
$
|
4.1
|
|
(+) Realized Net Performance Revenues
|
2.6
|
|
|
9.0
|
|
|
3.1
|
|
|
11.9
|
|
||||
(+) Realized Principal Investment Income
|
2.4
|
|
|
1.5
|
|
|
4.9
|
|
|
3.9
|
|
||||
(+) Net Interest
|
(1.9
|
)
|
|
(2.2
|
)
|
|
(3.9
|
)
|
|
(3.2
|
)
|
||||
(=) Distributable Earnings
|
$
|
14.6
|
|
|
$
|
8.9
|
|
|
$
|
24.8
|
|
|
$
|
16.7
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Distributable earnings, June 30, 2017
|
$
|
8.9
|
|
$
|
16.7
|
|
Increases (decreases):
|
|
|
||||
Increase in fee related earnings
|
10.9
|
|
16.6
|
|
||
Decrease in realized net performance revenues
|
(6.4
|
)
|
(8.8
|
)
|
||
Increase in realized principal investment income
|
0.9
|
|
1.0
|
|
||
Decrease (increase) in net interest
|
0.3
|
|
(0.7
|
)
|
||
Total increase
|
5.7
|
|
8.1
|
|
||
Distributable earnings, June 30, 2018
|
$
|
14.6
|
|
$
|
24.8
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Fee related earnings, June 30, 2017
|
$
|
0.6
|
|
$
|
4.1
|
|
Increases (decreases):
|
|
|
||||
Increase in fee revenues
|
14.5
|
|
25.1
|
|
||
Increase in cash-based compensation and benefits
|
(7.7
|
)
|
(18.0
|
)
|
||
Decrease in general, administrative and other indirect expenses
|
4.5
|
|
11.9
|
|
||
All other changes
|
(0.4
|
)
|
(2.4
|
)
|
||
Total increase
|
10.9
|
|
16.6
|
|
||
Fee related earnings, June 30, 2018
|
$
|
11.5
|
|
$
|
20.7
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Economic income, June 30, 2017
|
$
|
0.6
|
|
$
|
16.0
|
|
Increases (decreases):
|
|
|
||||
Decrease in net performance revenues
|
(0.6
|
)
|
(9.3
|
)
|
||
Decrease in principal investment income
|
(0.9
|
)
|
(3.0
|
)
|
||
Decrease (increase) in equity-based compensation
|
0.4
|
|
(1.2
|
)
|
||
Increase in fee related earnings
|
10.9
|
|
16.6
|
|
||
Decrease (increase) in net interest
|
0.3
|
|
(0.7
|
)
|
||
Total increase
|
10.1
|
|
2.4
|
|
||
Economic income, June 30, 2018
|
$
|
10.7
|
|
$
|
18.4
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Carry funds
|
$
|
10.9
|
|
|
$
|
2.3
|
|
|
$
|
11.5
|
|
|
$
|
15.8
|
|
Structured credit funds and business development companies
|
2.6
|
|
|
13.3
|
|
|
5.7
|
|
|
19.9
|
|
||||
Total performance revenues
|
$
|
13.5
|
|
|
$
|
15.6
|
|
|
$
|
17.2
|
|
|
$
|
35.7
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||
|
2018
|
2017
|
|
2018
|
2017
|
Carry funds
|
3%
|
0%
|
|
6%
|
8%
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||
|
2018
|
2017
|
|
2018
|
2017
|
|
(Dollars in millions)
|
||||
Net Performance Revenues
|
$7.5
|
$8.1
|
|
$9.4
|
$18.7
|
|
|
|
|
|
|
Percentage of Total Performance Revenues
|
56%
|
52%
|
|
55%
|
52%
|
|
As of June 30,
|
||||||
|
2018
|
|
2017
|
||||
Global Credit
|
(Dollars in millions)
|
||||||
Components of Fee-earning AUM (1)
|
|
|
|
||||
Fee-earning AUM based on capital commitments
|
$
|
5,026
|
|
|
$
|
5,026
|
|
Fee-earning AUM based on invested capital
|
1,522
|
|
|
1,212
|
|
||
Fee-earning AUM based on collateral balances, at par
|
20,046
|
|
|
17,111
|
|
||
Fee-earning AUM based on net asset value
|
126
|
|
|
18
|
|
||
Fee-earning AUM based on other (2)
|
2,075
|
|
|
1,847
|
|
||
Total Fee-earning AUM
|
$
|
28,795
|
|
|
$
|
25,214
|
|
Weighted Average Management Fee Rates (3)
|
|
|
|
||||
All Funds, excluding CLOs
|
1.35
|
%
|
|
1.37
|
%
|
(1)
|
For additional information concerning the components of Fee-earning AUM, see “—Fee-earning Assets under Management.”
|
(2)
|
Includes funds with fees based on gross asset value.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Global Credit
|
(Dollars in millions)
|
|
(Dollars in millions)
|
||||||||||||
Fee-earning AUM Rollforward
|
|
|
|
|
|
|
|
||||||||
Balance, Beginning of Period
|
$
|
27,830
|
|
|
$
|
24,442
|
|
|
$
|
27,262
|
|
|
$
|
24,126
|
|
Inflows, including Fee-paying Commitments (1)
|
79
|
|
|
45
|
|
|
280
|
|
|
1,109
|
|
||||
Outflows, including Distributions (2)
|
(207
|
)
|
|
(99
|
)
|
|
(225
|
)
|
|
(146
|
)
|
||||
Changes in CLO collateral balances (3)
|
1,339
|
|
|
389
|
|
|
1,600
|
|
|
(349
|
)
|
||||
Market Appreciation/(Depreciation) (4)
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
||||
Foreign Exchange and other (5)
|
(246
|
)
|
|
436
|
|
|
(121
|
)
|
|
473
|
|
||||
Balance, End of Period
|
$
|
28,795
|
|
|
$
|
25,214
|
|
|
$
|
28,795
|
|
|
$
|
25,214
|
|
(1)
|
Inflows represent limited partner capital raised and capital invested by our carry funds outside the investment period.
|
(2)
|
Outflows represent limited partner distributions from our carry funds, changes in fee basis for our carry funds where the investment period has expired, and reductions for funds that are no longer calling fees.
|
(3)
|
Represents the change in the aggregate Fee-earning collateral balances and principal balances at par of our CLOs/structured products, as of the quarterly cut-off dates.
|
(4)
|
Market Appreciation/ (Depreciation) represents changes in the net asset value of certain carry funds.
|
(5)
|
Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds and other changes in Total AUM. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.
|
|
Three Months Ended
June 30, 2018
|
|
Six Months Ended
June 30, 2018
|
||||
|
(Dollars in millions)
|
|
(Dollars in millions)
|
||||
Global Credit
|
|
|
|
||||
Total AUM Rollforward
|
|
|
|
||||
Balance, Beginning of Period
|
$
|
33,783
|
|
|
$
|
33,324
|
|
New Commitments (1)
|
2,018
|
|
|
2,868
|
|
||
Outflows (2)
|
(186
|
)
|
|
(525
|
)
|
||
Market Appreciation/(Depreciation) (3)
|
128
|
|
|
204
|
|
||
Foreign Exchange Gain/(Loss) (4)
|
(364
|
)
|
|
(193
|
)
|
||
Other (5)
|
152
|
|
|
(147
|
)
|
||
Balance, End of Period
|
$
|
35,531
|
|
|
$
|
35,531
|
|
(1)
|
New Commitments reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects translation at the average quarterly rate, while the separately reported Fundraising metric is translated at the spot rate for each individual closing.
|
(2)
|
Outflows includes distributions in our carry funds, related co-investment vehicles and separately managed accounts, as well as runoff of CLO collateral balances.
|
(3)
|
Market Appreciation/(Depreciation) generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related co-investment vehicles and separately managed accounts.
|
(4)
|
Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.
|
(5)
|
Includes expiring available capital, the impact of capital calls for fees and expenses, change in gross asset value for our business development companies and other changes in AUM.
|
|
|
|
TOTAL INVESTMENTS
|
||||||||||||
|
|
|
As of June 30, 2018
|
||||||||||||
|
Fund
Inception Date(1) |
Committed
Capital |
Cumulative
Invested Capital(2) |
Total Fair
Value(3) |
MOIC(4)
|
Gross IRR
(5)(10)
|
Net IRR (6)(10)
|
||||||||
Global Credit (Carry Funds Only)
|
(Reported in Local Currency, in Millions)
|
|
|
||||||||||||
Fully Invested/Committed Funds (7)
|
|
|
|
|
|
||||||||||
CSP II
|
6/2007
|
$
|
1,352.3
|
|
$
|
1,352.3
|
|
$
|
2,474.6
|
|
1.8x
|
17
|
%
|
11
|
%
|
CSP III
|
8/2011
|
$
|
702.8
|
|
$
|
702.8
|
|
$
|
1,194.5
|
|
1.7x
|
31
|
%
|
20
|
%
|
CEMOF I
|
12/2010
|
$
|
1,382.5
|
|
$
|
1,600.4
|
|
$
|
1,426.0
|
|
0.9x
|
Neg
|
|
Neg
|
|
All Other Funds(8)
|
|
|
|
$
|
1,446.5
|
|
$
|
1,989.1
|
|
1.4x
|
12
|
%
|
7
|
%
|
|
Coinvestments and Other(9)
|
|
|
|
$
|
1,029.6
|
|
$
|
1,023.6
|
|
1.0x
|
NM
|
|
NM
|
|
|
Total Fully Invested Funds
|
$
|
6,131.6
|
|
$
|
8,107.8
|
|
1.3x
|
12
|
%
|
6
|
%
|
||||
Funds in the Investment Period (7)
|
|
|
|
|
|
||||||||||
CSP IV
|
3/2016
|
$
|
2,500.0
|
|
$
|
912.5
|
|
$
|
1,074.0
|
|
1.2x
|
NM
|
|
NM
|
|
CEMOF II
|
2/2015
|
$
|
2,819.2
|
|
$
|
954.7
|
|
$
|
1,075.9
|
|
1.1x
|
NM
|
|
NM
|
|
All Other Funds
|
|
|
|
$
|
439.2
|
|
$
|
465.8
|
|
1.1x
|
NM
|
|
NM
|
|
|
Total Funds in the Investment Period
|
|
|
|
$
|
2,306.4
|
|
$
|
2,615.8
|
|
1.1x
|
NM
|
|
NM
|
|
|
TOTAL Global Credit
|
|
|
$
|
8,438.0
|
|
$
|
10,723.6
|
|
1.3x
|
12
|
%
|
6
|
%
|
(1)
|
The data presented herein that provides “inception to date” performance results of our segments relates to the period following the formation of the first fund within each segment. For our Global Credit segment our first carry fund was formed in 2004.
|
(2)
|
Represents the original cost of all capital called for investments since inception of the fund.
|
(3)
|
Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried interest.
|
(4)
|
Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest, divided by cumulative invested capital.
|
(5)
|
Gross Internal Rate of Return (“Gross IRR”) represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value before management fees, expenses and carried interest.
|
(6)
|
Net Internal Rate of Return (“Net IRR”) represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value after management fees, expenses and carried interest. Fund level IRRs are based on aggregate Limited Partner cash flows, and this blended return may differ from that of individual Limited Partners. As a result, certain funds may generate accrued performance revenues with a blended Net IRR that is below the preferred return hurdle for that fund.
|
(7)
|
Fully Invested funds are past the expiration date of the investment period as defined in the respective limited partnership agreement. In instances where a successor fund has had its first capital call, the predecessor fund is categorized as fully invested.
|
(8)
|
Aggregate includes the following funds: CMP I, CMP II, CSP I, and CASCOF.
|
(9)
|
Includes coinvestments and certain other stand-alone investments arranged by us.
|
(10)
|
For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is negative as of reporting period end.
|
|
Remaining
Fair Value(1) |
Unrealized
MOIC(2) |
Total
MOIC(3) |
%
Invested(4) |
In Accrued
Carry/ (Clawback) (5) |
LTM
Realized Carry (6) |
Catch-up
Rate |
Fee
Initiation Date(7) |
Quarters
Since Fee Initiation |
Original
Investment Period End Date |
||||
|
|
As of June 30, 2018
|
|
|
|
|
||||||||
Global Credit
|
|
(Reported in Local Currency, in Millions)
|
|
|
|
|
||||||||
CEMOF II
|
$
|
995.3
|
|
1.0x
|
1.1x
|
34
|
%
|
|
|
100
|
%
|
Dec-15
|
11
|
Feb-20
|
CSP IV
|
$
|
820.5
|
|
1.1x
|
1.2x
|
37
|
%
|
X
|
|
100
|
%
|
Feb-17
|
6
|
Dec-20
|
CEMOF I
|
$
|
720.2
|
|
0.5x
|
0.9x
|
116
|
%
|
|
|
100
|
%
|
Dec-10
|
31
|
Dec-15
|
CSP III
|
$
|
347.5
|
|
1.2x
|
1.7x
|
100
|
%
|
X
|
X
|
80
|
%
|
Dec-11
|
27
|
Aug-15
|
All Other Funds (8)
|
$
|
539.3
|
|
1.0x
|
1.5x
|
|
NM
|
NM
|
|
|
|
|
||
Coinvestment and Other (9)
|
$
|
853.7
|
|
0.8x
|
1.0x
|
|
NM
|
NM
|
|
|
|
|
||
Total Global Credit
|
$
|
4,276.5
|
|
0.9x
|
1.3x
|
|
|
|
|
|
|
|
(1)
|
Remaining Fair Value reflects the unrealized carrying value of investments for Corporate Private Equity, Real Assets and Global Credit carry funds and related co-investment vehicles. Significant funds with remaining fair value of greater than $100 million are listed individually.
|
(2)
|
Unrealized multiple of invested capital (“MOIC”) represents remaining fair market value, before management fees, expenses and carried interest, divided by remaining investment cost.
|
(3)
|
Total MOIC represents total fair value (realized proceeds combined with remaining fair value), before management fees, expenses and carried interest, divided by cumulative invested capital. For certain funds, represents the original cost of investments net of investment-level recallable proceeds, which is adjusted to reflect recyclability of invested capital for the purpose of calculating the fund MOIC.
|
(4)
|
Represents cumulative invested capital as of the reporting period divided by total commitments. Amount can be greater than 100% due to the re-investment of recallable distributions to fund investors.
|
(5)
|
Fund has a net accrued performance revenue balance/(giveback obligation) as of the current quarter end, driven by a significant portion of the fund’s asset base.
|
(6)
|
Fund has generated realized net performance revenues/(realized giveback) in the last twelve months.
|
(7)
|
Represents the date of the first capital contribution for management fees.
|
(8)
|
Aggregate includes the following funds: CSP I, CSP II, CMP I, CMP II, CSC, CCOF, and CASCOF. In Accrued Carry/(Clawback) and LTM Realized Carry not indicated because the indicator does not apply to each fund within the aggregate.
|
(9)
|
Includes co-investments, prefund investments and certain other stand-alone investments arranged by us. In Accrued Carry/(Clawback) and LTM Realized Carry not indicated because the indicator does not apply to each fund within the aggregate.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Segment Revenues
|
|
|
|
|
|
|
|
||||||||
Fund level fee revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
41.6
|
|
|
$
|
36.2
|
|
|
$
|
81.9
|
|
|
$
|
72.0
|
|
Portfolio advisory fees, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Transaction fees, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total fund level fee revenues
|
41.6
|
|
|
36.2
|
|
|
81.9
|
|
|
72.0
|
|
||||
Performance revenues
|
|
|
|
|
|
|
|
||||||||
Realized
|
9.2
|
|
|
23.7
|
|
|
23.3
|
|
|
36.3
|
|
||||
Unrealized
|
54.4
|
|
|
4.7
|
|
|
91.2
|
|
|
27.9
|
|
||||
Total performance revenues
|
63.6
|
|
|
28.4
|
|
|
114.5
|
|
|
64.2
|
|
||||
Principal investment income
|
|
|
|
|
|
|
|
||||||||
Realized
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
||||
Unrealized
|
2.3
|
|
|
0.4
|
|
|
3.3
|
|
|
1.5
|
|
||||
Total principal investment income
|
2.2
|
|
|
0.3
|
|
|
3.3
|
|
|
1.5
|
|
||||
Interest income
|
0.3
|
|
|
0.2
|
|
|
0.8
|
|
|
0.3
|
|
||||
Other income
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
|
0.2
|
|
||||
Total revenues
|
107.8
|
|
|
65.2
|
|
|
200.8
|
|
|
138.2
|
|
||||
Segment Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
22.0
|
|
|
20.2
|
|
|
45.2
|
|
|
39.1
|
|
||||
Equity-based compensation
|
4.0
|
|
|
2.1
|
|
|
7.0
|
|
|
4.1
|
|
||||
Performance revenues related compensation
|
|
|
|
|
|
|
|
||||||||
Realized
|
8.8
|
|
|
23.4
|
|
|
21.4
|
|
|
35.5
|
|
||||
Unrealized
|
44.3
|
|
|
1.4
|
|
|
71.4
|
|
|
20.4
|
|
||||
Total compensation and benefits
|
79.1
|
|
|
47.1
|
|
|
145.0
|
|
|
99.1
|
|
||||
General, administrative, and other indirect expenses
|
9.2
|
|
|
8.7
|
|
|
17.2
|
|
|
15.5
|
|
||||
Depreciation and amortization expense
|
1.1
|
|
|
0.9
|
|
|
2.2
|
|
|
1.7
|
|
||||
Interest expense
|
1.5
|
|
|
1.5
|
|
|
3.1
|
|
|
3.0
|
|
||||
Total expenses
|
90.9
|
|
|
58.2
|
|
|
167.5
|
|
|
119.3
|
|
||||
Economic Income
|
$
|
16.9
|
|
|
$
|
7.0
|
|
|
$
|
33.3
|
|
|
$
|
18.9
|
|
(-) Net Performance Revenues
|
10.5
|
|
|
3.6
|
|
|
21.7
|
|
|
8.3
|
|
||||
(-) Principal Investment Income
|
2.2
|
|
|
0.3
|
|
|
3.3
|
|
|
1.5
|
|
||||
(+) Equity-based Compensation
|
4.0
|
|
|
2.1
|
|
|
7.0
|
|
|
4.1
|
|
||||
(+) Net Interest
|
1.2
|
|
|
1.3
|
|
|
2.3
|
|
|
2.7
|
|
||||
(=) Fee Related Earnings
|
$
|
9.4
|
|
|
$
|
6.5
|
|
|
$
|
17.6
|
|
|
$
|
15.9
|
|
(+) Realized Net Performance Revenues
|
0.4
|
|
|
0.3
|
|
|
1.9
|
|
|
0.8
|
|
||||
(+) Realized Principal Investment Income
|
(0.1
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
||||
(+) Net Interest
|
(1.2
|
)
|
|
(1.3
|
)
|
|
(2.3
|
)
|
|
(2.7
|
)
|
||||
(=) Distributable Earnings
|
$
|
8.5
|
|
|
$
|
5.4
|
|
|
$
|
17.2
|
|
|
$
|
14.0
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Distributable earnings, June 30, 2017
|
$
|
5.4
|
|
$
|
14.0
|
|
Increases (decreases):
|
|
|
||||
Increase in fee related earnings
|
2.9
|
|
1.7
|
|
||
Increase in realized net performance revenues
|
0.1
|
|
1.1
|
|
||
Decrease in net interest
|
0.1
|
|
0.4
|
|
||
Total increase
|
3.1
|
|
3.2
|
|
||
Distributable earnings, June 30, 2018
|
$
|
8.5
|
|
$
|
17.2
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Fee related earnings, June 30, 2017
|
$
|
6.5
|
|
$
|
15.9
|
|
Increases (decreases):
|
|
|
||||
Increase in fee revenues
|
5.4
|
|
9.9
|
|
||
Increase in cash-based compensation and benefits
|
(1.8
|
)
|
(6.1
|
)
|
||
Increase in general, administrative and other indirect expenses
|
(0.5
|
)
|
(1.7
|
)
|
||
All other changes
|
(0.2
|
)
|
(0.4
|
)
|
||
Total increase
|
2.9
|
|
1.7
|
|
||
Fee related earnings, June 30, 2018
|
$
|
9.4
|
|
$
|
17.6
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||
|
(Dollars in Millions)
|
|||||
Economic income, June 30, 2017
|
$
|
7.0
|
|
$
|
18.9
|
|
Increases (decreases):
|
|
|
||||
Increase in net performance revenues
|
6.9
|
|
13.4
|
|
||
Increase in principal investment income
|
1.9
|
|
1.8
|
|
||
Increase in equity-based compensation
|
(1.9
|
)
|
(2.9
|
)
|
||
Increase in fee related earnings
|
2.9
|
|
1.7
|
|
||
Decrease in net interest
|
0.1
|
|
0.4
|
|
||
Total increase
|
9.9
|
|
14.4
|
|
||
Economic income, June 30, 2018
|
$
|
16.9
|
|
$
|
33.3
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Private equity fund vehicles
|
$
|
63.8
|
|
|
$
|
27.7
|
|
|
$
|
112.0
|
|
|
$
|
62.7
|
|
Real estate fund vehicles
|
(0.2
|
)
|
|
0.7
|
|
|
2.5
|
|
|
1.5
|
|
||||
Total performance revenues
|
$
|
63.6
|
|
|
$
|
28.4
|
|
|
$
|
114.5
|
|
|
$
|
64.2
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||
|
2018
|
2017
|
|
2018
|
2017
|
Carry funds
|
8%
|
1%
|
|
12%
|
4%
|
|
As of June 30,
|
||||||
|
2018
|
|
2017
|
||||
Investment Solutions
|
(Dollars in millions)
|
||||||
Components of Fee-earning AUM (1)
|
|
|
|
||||
Fee-earning AUM based on capital commitments
|
$
|
10,869
|
|
|
$
|
9,319
|
|
Fee-earning AUM based on invested capital (2)
|
1,661
|
|
|
1,199
|
|
||
Fee-earning AUM based on net asset value
|
993
|
|
|
783
|
|
||
Fee-earning AUM based on lower of cost or fair market value
|
16,308
|
|
|
17,167
|
|
||
Total Fee-earning AUM
|
$
|
29,831
|
|
|
$
|
28,468
|
|
(1)
|
For additional information concerning the components of Fee-earning AUM, see “—Fee-earning Assets under Management.”
|
(2)
|
Includes amounts committed to or reserved for certain AlpInvest and Metropolitan carry funds.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Investment Solutions
|
(Dollars in millions)
|
|
(Dollars in millions)
|
||||||||||||
Fee-earning AUM Rollforward
|
|
|
|
|
|
|
|
||||||||
Balance, Beginning of Period
|
$
|
30,514
|
|
|
$
|
26,428
|
|
|
$
|
30,150
|
|
|
$
|
27,054
|
|
Inflows, including Fee-paying Commitments (1)
|
1,604
|
|
|
1,931
|
|
|
2,730
|
|
|
2,932
|
|
||||
Outflows, including Distributions (2)
|
(1,096
|
)
|
|
(1,078
|
)
|
|
(2,326
|
)
|
|
(3,045
|
)
|
||||
Market Appreciation/(Depreciation) (3)
|
2
|
|
|
(191
|
)
|
|
(90
|
)
|
|
(172
|
)
|
||||
Foreign Exchange and other (4)
|
(1,193
|
)
|
|
1,378
|
|
|
(633
|
)
|
|
1,699
|
|
||||
Balance, End of Period
|
$
|
29,831
|
|
|
$
|
28,468
|
|
|
$
|
29,831
|
|
|
$
|
28,468
|
|
(1)
|
Inflows represent mandates where commitment fee period was activated and capital invested by carry fund vehicles outside the commitment fee period or weighted-average investment period.
|
(2)
|
Outflows represent distributions from carry fund vehicles outside the commitment fee period or weighted-average investment period and changes in fee basis for carry fund vehicles where the commitment fee period or weighted-average investment period has expired.
|
(3)
|
Market Appreciation/(Depreciation) represents realized and unrealized gains (losses) on our carry fund vehicles based on the lower of cost or fair value.
|
(4)
|
Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.
|
|
Three Months Ended
June 30, 2018
|
|
Six Months Ended
June 30, 2018
|
||||
|
(Dollars in millions)
|
|
(Dollars in millions)
|
||||
Investment Solutions
|
|
|
|
||||
Total AUM Rollforward
|
|
|
|
||||
Balance, Beginning of Period
|
$
|
48,707
|
|
|
$
|
46,291
|
|
New Commitments (1)
|
640
|
|
|
2,306
|
|
||
Outflows (2)
|
(2,378
|
)
|
|
(4,104
|
)
|
||
Market Appreciation/(Depreciation) (3)
|
2,744
|
|
|
4,028
|
|
||
Foreign Exchange Gain/(Loss) (4)
|
(1,934
|
)
|
|
(1,069
|
)
|
||
Other (5)
|
(154
|
)
|
|
173
|
|
||
Balance, End of Period
|
$
|
47,625
|
|
|
$
|
47,625
|
|
(1)
|
New Commitments reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects translation at the average quarterly rate, while the separately reported Fundraising metric is translated at the spot rate for each individual closing.
|
(2)
|
Outflows includes distributions in our carry funds, related co-investment vehicles and separately managed accounts.
|
(3)
|
Market Appreciation/(Depreciation) generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds and related co-investment vehicles and separately managed accounts. The fair market values for our Investment Solutions carry funds are based on the latest available valuations of the underlying limited partnership interests (in most cases as of March 31, 2018) as provided by their general partners, plus the net cash flows since the latest valuation, up to June 30, 2018.
|
(4)
|
Represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.
|
(5)
|
Includes expiring available capital, the impact of capital calls for fees and expenses other changes in AUM.
|
|
|
|
|
TOTAL INVESTMENTS
|
||||||||||||
|
|
|
|
As of June 30, 2018
|
||||||||||||
Investment Solutions (1)
|
|
Vintage
Year |
Fund Size
|
Cumulative
Invested Capital (2)(8) |
Total Fair
Value (3)(8) |
MOIC (4)
|
Gross IRR (6) (10)
|
Net IRR (7) (10)
|
||||||||
|
|
(Reported in Local Currency, in Millions)
|
||||||||||||||
AlpInvest
|
|
|
|
|
|
|
|
|
||||||||
Fully Committed Funds (5)
|
|
|
|
|
|
|
|
|
||||||||
Main Fund I - Fund Investments
|
|
2000
|
€
|
5,174.6
|
|
€
|
4,233.0
|
|
€
|
6,969.2
|
|
1.6x
|
12
|
%
|
11
|
%
|
Main Fund II - Fund Investments
|
|
2003
|
€
|
4,545.0
|
|
€
|
4,808.7
|
|
€
|
7,673.2
|
|
1.6x
|
10
|
%
|
9
|
%
|
Main Fund III - Fund Investments
|
|
2005
|
€
|
11,500.0
|
|
€
|
12,749.3
|
|
€
|
20,692.3
|
|
1.6x
|
10
|
%
|
10
|
%
|
Main Fund IV - Fund Investments
|
|
2009
|
€
|
4,877.3
|
|
€
|
5,109.2
|
|
€
|
8,504.4
|
|
1.7x
|
17
|
%
|
16
|
%
|
Main Fund V - Fund Investments
|
|
2012
|
€
|
5,080.0
|
|
€
|
4,312.5
|
|
€
|
5,761.7
|
|
1.3x
|
14
|
%
|
13
|
%
|
Main Fund VI - Fund Investments
|
|
2015
|
€
|
1,106.4
|
|
€
|
525.7
|
|
€
|
597.6
|
|
1.1x
|
NM
|
|
NM
|
|
Main Fund I - Secondary Investments
|
|
2002
|
€
|
519.4
|
|
€
|
475.3
|
|
€
|
896.5
|
|
1.9x
|
57
|
%
|
54
|
%
|
Main Fund II - Secondary Investments
|
|
2003
|
€
|
998.4
|
|
€
|
1,002.8
|
|
€
|
1,833.1
|
|
1.8x
|
27
|
%
|
26
|
%
|
Main Fund III - Secondary Investments
|
|
2006
|
€
|
2,250.0
|
|
€
|
2,341.3
|
|
€
|
3,544.6
|
|
1.5x
|
11
|
%
|
10
|
%
|
Main Fund IV - Secondary Investments
|
|
2010
|
€
|
1,859.1
|
|
€
|
1,926.9
|
|
€
|
3,298.0
|
|
1.7x
|
19
|
%
|
19
|
%
|
Main Fund V - Secondary Investments
|
|
2011
|
€
|
4,272.8
|
|
€
|
3,892.4
|
|
€
|
6,408.0
|
|
1.6x
|
24
|
%
|
22
|
%
|
Main Fund II - Co-Investments
|
|
2003
|
€
|
1,090.0
|
|
€
|
901.7
|
|
€
|
2,515.2
|
|
2.8x
|
44
|
%
|
42
|
%
|
Main Fund III - Co-Investments
|
|
2006
|
€
|
2,760.0
|
|
€
|
2,760.0
|
|
€
|
3,858.0
|
|
1.4x
|
5
|
%
|
5
|
%
|
Main Fund IV - Co-Investments
|
|
2010
|
€
|
1,475.0
|
|
€
|
1,331.3
|
|
€
|
3,532.5
|
|
2.7x
|
24
|
%
|
22
|
%
|
Main Fund V - Co-Investments
|
|
2012
|
€
|
1,122.2
|
|
€
|
1,020.2
|
|
€
|
2,440.2
|
|
2.4x
|
31
|
%
|
29
|
%
|
Main Fund VI - Co-Investments
|
|
2014
|
€
|
1,114.6
|
|
€
|
919.3
|
|
€
|
1,698.4
|
|
1.8x
|
30
|
%
|
27
|
%
|
Main Fund II - Mezzanine Investments
|
|
2004
|
€
|
700.0
|
|
€
|
753.5
|
|
€
|
1,039.9
|
|
1.4x
|
8
|
%
|
7
|
%
|
Main Fund III - Mezzanine Investments
|
|
2006
|
€
|
2,000.0
|
|
€
|
1,951.7
|
|
€
|
2,653.0
|
|
1.4x
|
10
|
%
|
9
|
%
|
All Other Funds (9)
|
|
Various
|
|
€
|
2,213.5
|
|
€
|
3,077.1
|
|
1.4x
|
14
|
%
|
11
|
%
|
||
Total Fully Committed Funds
|
|
|
|
€
|
53,228.1
|
|
€
|
86,993.0
|
|
1.6x
|
13
|
%
|
12
|
%
|
||
Funds in the Commitment Period (5)
|
|
|
|
|
|
|
|
|
||||||||
Main Fund VI - Secondary Investments
|
|
2017
|
€
|
5,007.6
|
|
€
|
986.6
|
|
€
|
1,127.3
|
|
1.1x
|
NM
|
|
NM
|
|
Main Fund VII - Co-Investments
|
|
2017
|
€
|
2,484.7
|
|
€
|
426.1
|
|
€
|
466.0
|
|
1.1x
|
NM
|
|
NM
|
|
All Other Funds (9)
|
|
Various
|
|
|
€
|
726.4
|
|
€
|
953.9
|
|
1.3x
|
22
|
%
|
19
|
%
|
|
Total Funds in the Commitment Period
|
|
|
|
€
|
2,139.1
|
|
€
|
2,547.2
|
|
1.2x
|
19
|
%
|
14
|
%
|
||
TOTAL ALPINVEST
|
|
|
|
€
|
55,367.3
|
|
€
|
89,540.2
|
|
1.6x
|
13
|
%
|
12
|
%
|
||
TOTAL ALPINVEST (USD) (11)
|
|
|
|
$
|
64,651.2
|
|
$
|
104,554.1
|
|
1.6x
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Metropolitan Real Estate
|
|
|
|
|
|
|
|
|
|
|
||||||
Fully Committed Funds (5)
|
|
Various
|
|
$
|
3,003.4
|
|
$
|
3,911.0
|
|
1.3x
|
7
|
%
|
4
|
%
|
||
Funds in the Commitment Period (5)
|
|
Various
|
|
$
|
127.0
|
|
$
|
149.3
|
|
1.2x
|
NM
|
|
NM
|
|
||
TOTAL METROPOLITAN REAL ESTATE
|
|
|
|
$
|
3,130.4
|
|
$
|
4,060.3
|
|
1.3x
|
7
|
%
|
4
|
%
|
(1)
|
Includes private equity and mezzanine primary fund investments, secondary fund investments and co-investments originated by the AlpInvest team, as well as real estate primary fund investments, secondary fund investments and co-investments originated by the Metropolitan Real Estate team. Excluded from the performance information shown are a) investments that were not originated by AlpInvest, and b) Direct Investments, which was spun off from AlpInvest in 2005. As of June 30, 2018, these excluded investments represent $0.2 billion of AUM at AlpInvest.
|
(2)
|
Represents the original cost of investments since inception of the fund.
|
(3)
|
Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried interest.
|
(4)
|
Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest, divided by cumulative invested capital.
|
(5)
|
Fully Committed funds are past the expiration date of the commitment period as defined in the respective limited partnership agreement.
|
(6)
|
Gross Internal Rate of Return ("Gross IRR") represents the annualized IRR for the period indicated on Limited Partner invested capital based on investment contributions, distributions and unrealized value of the underlying investments, before management fees, expenses and carried interest at the AlpInvest/Metropolitan Real Estate level.
|
(7)
|
Net Internal Rate of Return (“Net IRR”) represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value after management fees, expenses and carried interest. Fund level IRRs are based on aggregate Limited Partner cash flows, and this blended return may differ from that of individual Limited Partners. As a result, certain funds may generate accrued performance revenues with a blended Net IRR that is below the preferred return hurdle for that fund.
|
(8)
|
To exclude the impact of FX, all AlpInvest foreign currency cash flows have been converted to Euro at the reporting period spot rate.
|
(9)
|
Aggregate includes Main Fund VII - Fund Investments, Main Fund VIII - Fund Investments, Main Fund I - Co-Investments, Main Fund I - Mezzanine Investments, Main Fund IV - Mezzanine Investments, Main Fund V - Mezzanine Investments, AlpInvest CleanTech Funds and funds which are not included as part of a main fund.
|
(10)
|
For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is negative as of reporting period end.
|
(11)
|
Represents the U.S. dollar equivalent balance translated at the spot rate as of period end.
|
Formation Date
|
|
Borrowing
Outstanding June 30, 2018 |
|
|
Borrowing
Outstanding December 31, 2017 |
|
|
Maturity Date
(1)
|
|
Interest Rate as of
June 30, 2018 |
|
||||
June 7, 2016
|
|
$
|
20.6
|
|
|
|
$
|
20.6
|
|
|
|
July 15, 2027
|
|
4.15%
|
(2)
|
February 28, 2017
|
|
72.1
|
|
|
|
74.3
|
|
|
|
September 21, 2029
|
|
2.33%
|
(3)
|
||
April 19, 2017
|
|
22.8
|
|
|
|
22.8
|
|
|
|
April 22, 2031
|
|
4.29%
|
(4) (15)
|
||
June 28, 2017
|
|
23.1
|
|
|
|
23.1
|
|
|
|
July 22, 2031
|
|
4.28%
|
(5) (15)
|
||
July 20, 2017
|
|
24.4
|
|
|
|
24.4
|
|
|
|
April 21, 2027
|
|
3.89%
|
(6) (15)
|
||
August 2, 2017
|
|
22.8
|
|
|
|
22.8
|
|
|
|
July 23, 2029
|
|
4.17%
|
(7) (15)
|
||
August 2, 2017
|
|
20.2
|
|
|
|
20.9
|
|
|
|
August 3, 2022
|
|
1.75%
|
(8)
|
||
August 14, 2017
|
|
22.6
|
|
|
|
22.6
|
|
|
|
August 15, 2030
|
|
4.20%
|
(9) (15)
|
||
November 30, 2017
|
|
22.7
|
|
|
|
22.7
|
|
|
|
January 16, 2030
|
|
4.08%
|
(10) (15)
|
||
December 6, 2017
|
|
19.1
|
|
|
|
19.1
|
|
|
|
October 16, 2030
|
|
3.99%
|
(11) (15)
|
||
December 7, 2017
|
|
21.2
|
|
|
|
21.2
|
|
|
|
January 19, 2029
|
|
3.72%
|
(12) (15)
|
||
January 30, 2018
|
|
19.2
|
|
|
|
—
|
|
|
|
January 22, 2030
|
|
3.98%
|
(13) (15)
|
||
March 1, 2018
|
|
15.4
|
|
|
|
—
|
|
|
|
January 15, 2031
|
|
3.9%
|
(14) (15)
|
||
|
|
$
|
326.2
|
|
|
|
$
|
294.5
|
|
|
|
|
|
|
|
(2)
|
Incurs interest at the weighted average rate of the underlying senior notes. Interest income on the underlying collateral approximated the amount of interest expense and was not significant for the
three months and six months ended June 30, 2018
and
2017
.
|
(3)
|
Original borrowing of
€61.8 million
; incurs interest at EURIBOR plus applicable margins as defined in the agreement.
|
(4)
|
Incurs interest at LIBOR plus
1.932%
.
|
(5)
|
Incurs interest at LIBOR plus
1.923%
.
|
(6)
|
Incurs interest at LIBOR plus
1.536%
.
|
(7)
|
Incurs interest at LIBOR plus
1.808%
.
|
(8)
|
Original borrowing of
€17.4 million
; incurs interest at EURIBOR plus
1.75%
and has full recourse to the Partnership.
|
(9)
|
Incurs interest at LIBOR plus
1.848%
.
|
(10)
|
Incurs interest at LIBOR plus
1.7312%
.
|
(11)
|
Incurs interest at LIBOR plus
1.647%
.
|
(12)
|
Incurs interest at LIBOR plus
1.365%
.
|
(13)
|
Incurs interest at LIBOR plus
1.624%
.
|
(14)
|
Incurs interest at LIBOR plus
1.552%
.
|
(15)
|
Term loan issued under master credit agreement.
|
Asset Class
|
Accrued
Performance Allocations
|
|
Accrued
Giveback
Obligation
|
|
Net Accrued
Performance
Revenues
|
||||||
|
(Dollars in millions)
|
||||||||||
Corporate Private Equity
|
$
|
2,342.4
|
|
|
$
|
(5.0
|
)
|
|
$
|
2,337.4
|
|
Real Assets
|
749.5
|
|
|
(58.2
|
)
|
|
691.3
|
|
|||
Global Credit
|
62.8
|
|
|
—
|
|
|
62.8
|
|
|||
Investment Solutions
|
745.6
|
|
|
—
|
|
|
745.6
|
|
|||
Total
|
$
|
3,900.3
|
|
|
$
|
(63.2
|
)
|
|
$
|
3,837.1
|
|
Plus: Accrued performance allocations from NGP
|
|
195.1
|
|
||||||||
Less: Accrued performance allocation-related compensation
|
|
(2,014.1
|
)
|
||||||||
Plus: Receivable for giveback obligations from current and former employees
|
|
1.1
|
|
||||||||
Less: Deferred taxes on accrued performance allocations
|
|
(61.2
|
)
|
||||||||
Less: Net accrued performance allocations attributable to non-controlling interests in consolidated
entities
|
|
10.5
|
|
||||||||
Net accrued performance revenues before timing differences
|
|
1,968.5
|
|
||||||||
Less/Plus: Timing differences between the period when accrued performance allocations are realized
and the period they are collected/distributed
|
|
0.6
|
|
||||||||
Net accrued performance revenues attributable to Carlyle Holdings
|
|
$
|
1,969.1
|
|
Corporate Private Equity:
|
|
||
Buyout
|
$
|
1,201.3
|
|
Growth Capital
|
67.1
|
|
|
Total Corporate Private Equity
|
1,268.4
|
|
|
Real Assets:
|
|
||
Real Estate
|
331.7
|
|
|
Natural Resources
|
264.4
|
|
|
Legacy Energy
|
(16.3
|
)
|
|
Total Real Assets
|
579.8
|
|
|
Global Credit
|
33.7
|
|
|
Investment Solutions
|
87.2
|
|
|
Net accrued performance revenues attributable to Carlyle Holdings
|
$
|
1,969.1
|
|
•
|
provide capital to facilitate the growth of our existing business lines;
|
•
|
provide capital to facilitate our expansion into new, complementary business lines, including acquisitions;
|
•
|
pay operating expenses, including compensation and compliance costs and other obligations as they arise;
|
•
|
fund costs of litigation and contingencies, including related legal costs;
|
•
|
fund the capital investments of Carlyle in our funds;
|
•
|
fund capital expenditures;
|
•
|
repay borrowings and related interest costs and expenses;
|
•
|
pay earnouts and contingent cash consideration associated with our acquisitions and strategic investments;
|
•
|
pay income taxes;
|
•
|
make distributions to our common and preferred unitholders and the holders of the Carlyle Holdings partnership units in accordance with our distribution policy, and;
|
•
|
repurchase our units.
|
Asset Class
|
Unfunded
Commitment
|
||
|
(Dollars in millions)
|
||
Corporate Private Equity
|
$
|
2,606.3
|
|
Real Assets
|
830.9
|
|
|
Global Credit
|
458.7
|
|
|
Investment Solutions
|
151.0
|
|
|
Total
|
$
|
4,046.9
|
|
Investments, excluding accrued performance allocations
|
$
|
1,747.3
|
|
Less: Amounts attributable to non-controlling interests in consolidated entities
|
(352.8
|
)
|
|
Less: Strategic equity method investments in NGP Management
|
(394.0
|
)
|
|
Less: Investment in NGP accrued performance allocations
|
(195.1
|
)
|
|
Investments excluding non-controlling interests and NGP
|
805.4
|
|
|
Plus: investments in Consolidated Funds, eliminated in consolidation
|
250.0
|
|
|
Total investments attributable to Carlyle Holdings, exclusive of NGP Management
|
$
|
1,055.4
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(Dollars in millions)
|
||||||
Statements of Cash Flows Data
|
|
|
|
||||
Net cash (used in) provided by operating activities
|
$
|
(538.2
|
)
|
|
$
|
373.1
|
|
Net cash used in investing activities
|
(12.5
|
)
|
|
(16.7
|
)
|
||
Net cash provided by (used in) financing activities
|
412.1
|
|
|
(277.0
|
)
|
||
Effect of foreign exchange rate changes
|
(11.7
|
)
|
|
35.9
|
|
||
Net change in cash, cash equivalents and restricted cash
|
$
|
(150.3
|
)
|
|
$
|
115.3
|
|
|
July 1, 2018 to
December 31, 2018
|
|
2019-2020
|
|
2021-2022
|
|
Thereafter
|
|
Total
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||
Debt obligations (including senior notes)
(a)
|
$
|
10.1
|
|
|
$
|
45.2
|
|
|
$
|
108.8
|
|
|
$
|
1,100.0
|
|
|
$
|
1,264.1
|
|
Interest payable
(b)
|
36.2
|
|
|
143.0
|
|
|
131.1
|
|
|
693.4
|
|
|
1,003.7
|
|
|||||
Contingent cash and other consideration
(c)
|
35.0
|
|
|
11.6
|
|
|
—
|
|
|
—
|
|
|
46.6
|
|
|||||
Operating lease obligations
(d)
|
24.3
|
|
|
103.8
|
|
|
90.3
|
|
|
352.3
|
|
|
570.7
|
|
|||||
Capital commitments to Carlyle funds
(e)
|
4,046.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,046.9
|
|
|||||
Tax receivable agreement payments
(f)
|
—
|
|
|
—
|
|
|
22.2
|
|
|
73.5
|
|
|
95.7
|
|
|||||
Loans payable of Consolidated Funds
(g)
|
81.2
|
|
|
194.5
|
|
|
194.2
|
|
|
5,471.1
|
|
|
5,941.0
|
|
|||||
Unfunded commitments of the CLOs
(h)
|
16.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.5
|
|
|||||
Consolidated contractual obligations
|
4,250.2
|
|
|
498.1
|
|
|
546.6
|
|
|
7,690.3
|
|
|
12,985.2
|
|
|||||
Loans payable of Consolidated Funds
(g)
|
(81.2
|
)
|
|
(194.5
|
)
|
|
(194.2
|
)
|
|
(5,471.1
|
)
|
|
(5,941.0
|
)
|
|||||
Capital commitments to Carlyle funds
(e)
|
(3,538.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,538.9
|
)
|
|||||
Unfunded commitments of the CLOs
(h)
|
(16.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16.5
|
)
|
|||||
Carlyle Operating Entities contractual obligations
|
$
|
613.6
|
|
|
$
|
303.6
|
|
|
$
|
352.4
|
|
|
$
|
2,219.2
|
|
|
$
|
3,488.8
|
|
(a)
|
The table above assumes that no prepayments are made on the CLO term loans, promissory notes or senior notes and that the outstanding balance on the revolving credit facility term loan is repaid on the maturity date of the senior credit facility, which is May 5, 2020. See Note 5 to the unaudited condensed consolidated financial statements for the various maturity dates of the CLO term loans, promissory notes and senior notes.
|
(b)
|
The interest rate on the debt obligations as of
June 30, 2018
consist of: 3.875% on $500.0 million of senior notes, 5.625% on $600.0 million of senior notes, approximately
3.24%
on $25.0 million remaining term loan under our senior credit facility, a range of approximately 1.75% to 4.29% for our CLO term loans, approximately
4.83%
on $108.8 million of our NGP promissory note and approximately
4.35%
on $33.5 million of our outstanding settlement promissory notes. Interest payments assume that no prepayments are made and loans are held until maturity.
|
(c)
|
These obligations represent our estimate of amounts to be paid on the contingent cash and other consideration obligations associated with our business acquisitions, payments related to the acquisition of secondary interests in Carlyle funds and other obligations.
|
(d)
|
We lease office space in various countries around the world and maintain our headquarters in Washington, D.C., where in June 2018, we entered into an amended non-cancelable lease agreement expiring on March 31, 2030. Our office leases in other locations expire in various years from 2018 through 2032. The amounts in this table represent the minimum lease payments required over the term of the lease.
|
(e)
|
These obligations generally represent commitments by us to fund a portion of the purchase price paid for each investment made by our funds. These amounts are generally due on demand and are therefore presented in the less than one year category. A substantial majority of these investments is expected to be funded by senior Carlyle professionals and other professionals through our internal co-investment program. Of the
$4.0 billion
of unfunded commitments, approximately
$3.5 billion
is subscribed individually by senior Carlyle professionals, advisors and other professionals, with the balance funded directly by the Partnership.
|
(f)
|
Represents obligations by the Partnership’s corporate taxpayers to make payments under the tax receivable agreement. Holders of partnership units in Carlyle Holdings may exchange their Carlyle Holdings partnership units for common units in The Carlyle Group L.P. on a one-for-one basis. These exchanges may reduce the amount of tax that the corporate taxpayers would be required to pay in the future. The corporate taxpayers will pay to the limited partner of Carlyle Holdings making the exchange 85% of the amount of cash savings that the corporate taxpayers realize upon an exchange. See “Tax Receivable Agreement” below. Further, the amount and timing of payments is subject to change as we continue to analyze the 2017 Tax Reform Act.
|
(g)
|
These obligations represent amounts due to holders of debt securities issued by the consolidated CLO vehicles. These obligations include interest to be paid on debt securities issued by the consolidated CLO vehicles. Interest payments assume that no prepayments are made and loans are held until maturity. For debt securities with rights only to the residual value of the CLO and no stated interest, no interest payments were included in this calculation. Interest payments on variable-rate debt securities are based on interest rates in effect as of
June 30, 2018
, at spreads to market rates pursuant to the debt agreements, and range from 0.40% to 9.96%.
|
(h)
|
These obligations represent commitments of the CLOs to fund certain investments. These amounts are generally due on demand and are therefore presented in the less than one year category.
|
|
Units as of December 31, 2017
|
|
Units Issued - DRUs
|
|
Units
Forfeited |
|
Units
Exchanged |
|
Units Repurchased / Retired
|
|
Units as of June 30, 2018
|
||||||
The Carlyle Group L.P.
common units |
100,100,650
|
|
|
2,702,361
|
|
|
—
|
|
|
1,657,730
|
|
|
(2,340,923
|
)
|
|
102,119,818
|
|
Carlyle Holdings
partnership units |
234,813,858
|
|
|
—
|
|
|
—
|
|
|
(1,657,730
|
)
|
|
—
|
|
|
233,156,128
|
|
Total
|
334,914,508
|
|
|
2,702,361
|
|
|
—
|
|
|
—
|
|
|
(2,340,923
|
)
|
|
335,275,946
|
|
Period
|
(a) Total number of units
purchased
|
(b) Average price paid per unit
|
(c) Total number of units purchased as part of publicly announced plans or programs
|
(d) Maximum number (or approximate dollar value) of units that may yet be purchased under the plans or programs
|
||||||
(Dollars in millions, except unit and per unit data)
|
||||||||||
April 1, 2018 to April 30, 2018
(1)(2)
|
—
|
|
$
|
—
|
|
—
|
|
$
|
140.9
|
|
|
|
|
|
|
||||||
May 1, 2018 to
May 31, 2018
(1)(2)
|
1,518,849
|
|
$
|
21.43
|
|
1,518,849
|
|
$
|
108.3
|
|
|
|
|
|
|
||||||
June 1, 2018 to
June 30, 2018
(1)(2)(3)
|
822,074
|
|
22.48
|
|
822,074
|
|
$
|
89.8
|
|
|
Total
|
2,340,923
|
|
|
2,340,923
|
|
|
(2)
|
For the periods from May 1, 2018 to May 31, 2018 and from June 1, 2018 to June 30, 2018, all of the units purchased were common units purchased in open market and brokered transactions. All units purchased during these periods were subsequently retired.
|
(3)
|
The total number of units purchased, shown in columns (a) and (c) in the table above, excludes 134,424 common units that were pending settlement at June 30, 2018.
|
Exhibit No.
|
Description
|
|
|
3.1
|
|
|
|
3.2
|
|
|
|
10.1
|
|
|
|
10.2 *
|
|
|
|
31.1 *
|
|
|
|
31.2 *
|
|
|
|
31.3 *
|
|
|
|
32.1 *
|
|
|
|
32.2 *
|
|
|
|
32.3 *
|
|
|
|
101.INS
|
XBRL Instance Document.
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
*
|
Filed herewith.
|
+
|
Management contract or compensatory plan or arrangement in which directors and/or executive officers are eligible to participate.
|
|
|
The Carlyle Group L.P.
|
||
|
|
|
||
|
|
By:
|
|
Carlyle Group Management L.L.C.,
its general partner
|
|
|
|
||
Date: August 1, 2018
|
|
By:
|
|
/s/ Curtis L. Buser
|
|
|
Name:
|
|
Curtis L. Buser
|
|
|
Title:
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer and Authorized Officer)
|
|
Page
|
|
LEASE OF PREMISES
|
2
|
|
3
|
|
|
3
|
|
|
9
|
|
|
1.
TERM
|
9
|
|
2.
BASE RENT
|
10
|
|
3.
ADDITIONAL RENT
|
11
|
|
4.
IMPROVEMENTS AND ALTERATIONS
|
19
|
|
5.
REPAIRS
|
27
|
|
6.
USE OF PREMISES
|
28
|
|
7.
UTILITIES AND SERVICES
|
31
|
|
8.
NON-LIABILITY AND INDEMNIFICATION; INSURANCE
|
34
|
|
9.
FIRE OR CASUALTY
|
38
|
|
10.
EMINENT DOMAIN
|
39
|
|
11.
ASSIGNMENT AND SUBLETTING
|
39
|
|
12.
DEFAULT
|
43
|
|
13.
ACCESS; CONSTRUCTION
|
46
|
|
14.
BANKRUPTCY
|
47
|
|
15.
SUBSTITUTION OF PREMISES
|
47
|
|
16.
SUBORDINATION; ATTORNMENT; ESTOPPEL CERTIFICATES
|
47
|
|
17.
SALE BY LANDLORD; TENANT’S REMEDIES; NONRECOURSE LIABILITY
|
49
|
|
18.
PARKING; COMMON AREAS
|
49
|
|
19.
STORAGE SPACE
|
51
|
|
20.
OPTION TO EXTEND
|
52
|
|
21.
RIGHT OF FIRST OFFER
|
53
|
|
22.
TELECOMMUNICATIONS EQUIPMENT
|
55
|
|
23.
MOLD AND MILDEW
|
59
|
|
24.
EXPANSION SPACE OPTION
|
59
|
|
25.
FORMER LANDLORD TERMINATION PAYMENT
|
60
|
|
26.
CARLYLE ELEVATOR BANK
|
61
|
|
27.
DISPUTE RESOLUTION
|
61
|
|
28.
MISCELLANEOUS
|
62
|
|
1.
|
Tenant:
|
|
Carlyle Investment Management L.L.C., a Delaware limited liability company (“Tenant”)
|
2.
|
Building:
|
|
1001 Pennsylvania Avenue, N.W.
Washington, D.C. (“Building”) |
3.
|
Description of Premises:
|
|
• Existing Premises: The entirety of the 2nd and 3rd floors of the Building as shown on Exhibit A-1 attached hereto
• Expansion Premises: That certain portion of the 4th and 5th floors of the South Tower of the Building as shown on Exhibit A-1 attached hereto |
|
Rentable Area:
|
|
• Premises: approximately 199,508 square feet of Rentable Area consisting of:
o Existing Premises: approximately 129,724 square feet of Rentable Area, consisting of approximately 58,236 square feet of Rentable Area on the second (2nd) floor of the Building, and approximately 71,488 square feet of Rentable Area on the third (3rd) floor of the Building. o Expansion Premises: approximately 69,784 square feet of Rentable Area, consisting of approximately 34,593 square feet of Rentable Area on the fourth (4th) floor of the South Tower of Building, and approximately 35,191 square feet of Rentable Area on the fifth (5th) floor of the South Towers Building. |
|
Building Size:
|
|
WDCAR methodology of measurement: Approximately 756,499 total square feet of Rentable Area (subject to Paragraph 18) consisting of approximately 713,574 square feet of Rentable Area of office space and approximately 42,925 square feet of rentable area of retail space.
BOMA ANSI-Z 65.1-1996 standard method of measurement: Approximately 805,337 total square feet of Rentable Area (subject to Paragraph 18) consisting of approximately 764,949 square feet of Rentable Area of office space and approximately 40,388 square feet of rentable area of retail space. |
4.
|
Tenant’s Proportionate
Share:
|
•
Existing Premises
: Tenant’s Proportionate Share Building: approximately 17.15% (129,724 rsf / 756,499 rsf) (See
Paragraph 3
)
•
Existing Premises
: Tenant’s Proportionate Share Office: approximately 18.18% (129,724 rsf / 713,574 rsf) (See
Paragraph 3
)
•
Expansion Premises
: Tenant’s Proportionate Share Building: approximately 8.67% (69,784 rsf / 805,337 rsf) (See
Paragraph 3
)
•
Expansion Premises
: Tenant’s Proportionate Share Office: approximately 9.12% (69,784 rsf / 764,949 rsf) (See
Paragraph 3
)
|
|
5.
|
Base Rent:
|
(See
Paragraph 2
)
|
|
|
A. EXISTING PREMISES BASE RENT
|
||
|
Commencement Date to July 31, 2019, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($51.91/square foot of Rentable Area/annum* - subject to abatement set forth in Paragraph 2(a))
$561,164.40
$6,733,972.84
|
|
|
August 1, 2019 to July 31, 2020, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($53.21/square foot of Rentable Area/annum)
$575,217.84
$6,902,614.04
|
|
|
August 1, 2020 to July 31, 2021, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($54.54/square foot of Rentable Area/annum)
$589,595.58
$7,075,146.96
|
|
|
August 1, 2021 to July 31, 2022, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($57.04/square foot of Rentable Area/annum)
$616,621.41
$7,399,456.96
|
|
|
August 1, 2022 to July 31, 2023, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($58.47/square foot of Rentable Area/annum)
$632,080.19
$7,584,962.28
|
|
|
August 1, 2023 to July 31, 2024, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($59.93/square foot of Rentable Area/annum)
$647,863.28
$7,774,359.32
|
|
|
August 1, 2024 to July 31, 2025, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($61.43/square foot of Rentable Area/annum)
$664,078.78
$7,968,945.32
|
|
August 1, 2025 to July 31, 2026, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($62.96/square foot of Rentable Area/annum)
$680,618.59
$8,167,423.08
|
|
|
August 1, 2026 to July 31, 2027, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($64.53/square foot of Rentable Area/annum)
$697,590.81
$8,371,089.72
|
|
|
August 1, 2027 to July 31, 2028, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($66.14/square foot of Rentable Area/annum)
$714,995.45
$8,579,945.36
|
|
|
August 1, 2028 to July 31, 2029, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($67.80/square foot of Rentable Area/annum)
$732,870.34
$8,795,287.20
|
|
|
August 1, 2029 to March 31, 2030, inclusive
:
Monthly Installment:
Each Lease Year:
|
Existing Premises
: ($69.50/square foot of Rentable Area/annum)
$751,257.57
$9,015,306.83
|
|
|
B. EXPANSION PREMISES BASE RENT
|
||
|
Commencement Date to March 31, 2020, inclusive
:
Monthly Installment:
Each Lease Year:
|
Expansion Premises
: ($45.00/square foot of Rentable Area/annum)
$261,690.00
$3,140,280.00
|
|
|
April 1, 2020 to March 31, 2021, inclusive
:
Monthly Installment:
Each Lease Year:
|
Expansion Premises
: ($46.13/square foot of Rentable Area/annum)
$268,261.33
$3,219,135.92
|
|
|
April 1, 2021 to March 31, 2022, inclusive
:
Monthly Installment:
Each Lease Year:
|
Expansion Premises
: ($47.28/square foot of Rentable Area/annum)
$274,948.96
$3,299,387.52
|
|
|
April 1, 2022 to March 31, 2023, inclusive
:
Monthly Installment:
Each Lease Year:
|
Expansion Premises
: ($48.46/square foot of Rentable Area/annum)
$281,811.05
$3,381,732.64
|
|
|
April 1, 2023 to March 31, 2024, inclusive
:
Monthly Installment:
Each Lease Year:
|
Expansion Premises
: ($49.67/square foot of Rentable Area/annum)
$288,847.61
$3,466,171.28
|
|
|
April 1, 2024 to March 31, 2025, inclusive
:
Monthly Installment:
Each Lease Year:
|
Expansion Premises
: ($50.91/square foot of Rentable Area/annum)
$296,058.62
$3,552,703.44
|
12.
|
Tenant’s Broker
(See
Paragraph 28(l)
):
|
Jones Lang LaSalle
2020 K Street, NW
Suite 1100
Washington, DC 20006
|
|
13.
|
Number of Parking Permits:
|
Tenant shall have the right to contract for a total of two hundred and ten (210) parking permits consisting of: (i) one hundred sixty (160) parking permits for the Premises which is equal to one monthly parking permit per 1,250 square feet of Rentable Area of the Premises leased by Tenant, and (ii) an additional fifty (50) parking permits (the “
Additional Permits
”), pursuant to Section 18(a). Each such parking permit shall be for unreserved parking in the Project’s garage at the prevailing market rate, pursuant to the provisions of
Paragraph 18(a)
below. In the event that Tenant exercise the Expansion Space Option (as defined in
Section 24
), Tenant shall have the right to contract for one (1) parking permit per 1,250 square feet of Rentable Area of the Expansion Space leased by Tenant (as defined in
Section 24
). In the event that Tenant desires additional spaces on the P-3 level of the parking garage, Landlord and Tenant shall enter into a separate agreement in connection therewith.
|
|
14.
|
Addresses for Notices:
To: TENANT:
Carlyle Investment Management, L.L.C.
1001 Pennsylvania Avenue, NW
Suite 220 South
Washington, DC 20004
Attn: Property Management and Chief Administrative Officer
and to:
Carlyle Investment Management, L.L.C.
1001 Pennsylvania Avenue, NW
Suite 220
Washington, DC 20004
Attn: General Counsel
With a copy to:
DLA Piper LLP (US)
500 Eighth Street, NW
Washington, DC 20004
Attn: Frederick L. Klein, Esq.
|
To: LANDLORD:
Property Management Office:
Teachers Insurance and Annuity Association of America
c/o Hines Interests Limited Partnership
1001 Pennsylvania Avenue, NW
Suite 100
Washington, DC 20004
Attn: Property Manager
With a copy to:
Teachers Insurance and Annuity Association of America
730 Third Avenue
New York, NY 10017-3206
Attn: Managing Director-Real Estate Portfolio, Investment Management-Mortgage and Real Estate
and to:
Teachers Insurance and Annuity Association of America
8500 Andrew Carnegie Blvd.
Charlotte, NC 28262
Attn: Vice-President and General Counsel-Investment Management Law
|
|
|
and to:
Teachers Insurance and Annuity Association of America
TH Real Estate
730 Third Avenue
New York, NY 10017-3206
Attn: Vadim Goland, Senior Director, Mid-Atlantic Region
and to:
Perkins Coie, LLP
700 13th Street, NW
Suite 600
Washington, DC 20005
Attn: Tara K. Gorman, Esq.
|
|
15.
|
Address for Payment of Rent:
|
All payments payable under this Lease shall be sent to Landlord at:
TIAA-CREF, Hines
Property Management 1001 Pennsylvania Avenue
PO Box 405352
Atlanta, GA 30384-5302
or to such other address as Landlord hereafter may designate in a written notice to Tenant given at least twenty (20) days prior to the date such payment is due.
|
|
16.
|
Guarantor:
|
TC Group, L.L.C., a Delaware limited liability company
|
|
17.
|
Effective Date:
|
The effective date of this Lease shall be the date set forth in the introductory paragraph above.
|
|
18.
|
Tenant Improvement
Allowance:
|
$15,957,136.00 (which is equal to (i) $9,211,488.00 (based upon One Hundred Thirty-Two Dollars ($132.00) per square foot of Rentable Area of the Expansion Premises) together with (ii) $6,745,648.00 (based upon Fifty-Two Dollars ($52.00) per square foot of Rentable Area of the Existing Premises). See
Paragraph 4(b)
.
|
|
19.
|
The “
State
” is the state, commonwealth, district or jurisdiction in which the Building is located.
|
Washington, D.C.
|
|
20.
|
Storage Space:
|
See
Paragraph 19
. Note: Storage Space rent is payable monthly in addition to Base Rent.
|
|
21.
|
Option to Extend:
|
Two (2) five (5)-year options. See
Paragraph 20
.
|
|
22.
|
Right of First Offer:
|
See
Paragraph 21
.
|
|
23.
|
Telecommunications Equipment:
|
See
Paragraph 22
.
|
|
24.
|
Lease Year:
|
The 12-month period beginning on the first day of the month in which the Commencement Date falls and each anniversary thereof.
|
|
25.
|
Additional Expansion Option:
|
See
Paragraph 24
.
|
|
26.
|
Former Landlord Termination Payment:
|
See
Paragraph 25
.
|
27.
|
Carlyle Elevator Bank:
|
See
Paragraph 26
.
|
|
28.
|
Dispute Resolution
|
See
Paragraph 27
.
|
a.
|
Use existing (as available) or install communication conduit within the Building;
|
b.
|
Specify, purchase and utilize its own cosmetic and / or decorative materials including, but not limited to, floor coverings, paint and wall coverings; and
|
c.
|
Install Tenant’s own security card access system within the Premises. Tenant’s security system shall be compatible with the Building system.
|
“
LANDLORD
”:
TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
, a New York corporation, for the benefit of its Real Estate Account
By:
/s/ Vadim Goland
Name:
Vadim Goland
Title:
Auth Signatory
Date:
6/14/2018
|
“
TENANT
”:
CARLYLE INVESTMENT MANAGEMENT L.L.C.
, a Delaware limited liability company
By:
/s/ Curtis L. Buser
Name:
Curtis L. Buser
Title:
Chief Financial Officer & Managing Director
Date:
June 13, 2018
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended
June 30, 2018
of The Carlyle Group L.P.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: August 1, 2018
|
|
/s/ Kewsong Lee
|
Kewsong Lee
|
Co-Chief Executive Officer
|
Carlyle Group Management L.L.C.
|
(
Co-Principal Executive Officer
)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended
June 30, 2018
of The Carlyle Group L.P.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: August 1, 2018
|
|
/s/ Glenn A. Youngkin
|
Glenn A. Youngkin
|
Co-Chief Executive Officer
|
Carlyle Group Management L.L.C.
|
(
Co-Principal Executive Officer
)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended
June 30, 2018
of The Carlyle Group L.P.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
Date: August 1, 2018
|
|
/s/ Curtis L. Buser
|
Curtis L. Buser
|
Chief Financial Officer
|
Carlyle Group Management L.L.C.
|
(
Principal Financial Officer
)
|
/s/ Kewsong Lee
|
Kewsong Lee
|
Co-Chief Executive Officer
|
Carlyle Group Management L.L.C.
|
*
|
The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.
|
/s/ Glenn A. Youngkin
|
Glenn A. Youngkin
|
Co-Chief Executive Officer
|
Carlyle Group Management L.L.C.
|
*
|
The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.
|
/s/ Curtis L. Buser
|
Curtis L. Buser
|
Chief Financial Officer
|
Carlyle Group Management L.L.C.
|
*
|
The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.
|