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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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45-2832612
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock
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CG
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The Nasdaq Global Select Market
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page
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Item 1.
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Unaudited Condensed Consolidated Financial Statements – March 31, 2020 and 2019:
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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•
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Corporate Private Equity: Buyout, middle market and growth capital funds advised by Carlyle
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•
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Real Assets: Real estate, power, infrastructure and energy funds advised by Carlyle, as well as certain energy funds advised by our strategic partner NGP Energy Capital Management (“NGP”) in which Carlyle is entitled to receive a share of carried interest (“NGP Carry Funds”)
|
•
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Global Credit: Distressed credit, energy credit, opportunistic credit, corporate mezzanine funds, aircraft financing and servicing, and other closed-end credit funds advised by Carlyle
|
•
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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 and other securitization vehicles, as defined in the fund indentures (typically exclusive of equities and defaulted positions) as of the quarterly cut-off date;
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(d)
|
the external investor portion of the net asset value of our open-ended funds (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)
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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 open-ended 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.
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|
March 31,
2020 |
|
December 31,
2019 |
||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,007.9
|
|
|
$
|
793.4
|
|
Cash and cash equivalents held at Consolidated Funds
|
170.9
|
|
|
122.4
|
|
||
Restricted cash
|
0.6
|
|
|
34.6
|
|
||
Investments, including accrued performance allocations of $2,752.1 million and $3,855.6 million as of March 31, 2020 and December 31, 2019, respectively
|
5,391.1
|
|
|
6,804.4
|
|
||
Investments of Consolidated Funds
|
4,465.3
|
|
|
5,007.3
|
|
||
Due from affiliates and other receivables, net
|
228.0
|
|
|
273.9
|
|
||
Due from affiliates and other receivables of Consolidated Funds, net
|
88.8
|
|
|
74.4
|
|
||
Fixed assets, net
|
120.6
|
|
|
108.2
|
|
||
Lease right-of-use assets, net
|
194.2
|
|
|
203.8
|
|
||
Deposits and other
|
54.4
|
|
|
54.0
|
|
||
Intangible assets, net
|
58.3
|
|
|
62.3
|
|
||
Deferred tax assets
|
304.5
|
|
|
270.1
|
|
||
Total assets
|
$
|
12,084.6
|
|
|
$
|
13,808.8
|
|
Liabilities and equity
|
|
|
|
||||
Debt obligations
|
$
|
2,188.3
|
|
|
$
|
1,976.3
|
|
Loans payable of Consolidated Funds
|
4,196.3
|
|
|
4,706.7
|
|
||
Accounts payable, accrued expenses and other liabilities
|
301.6
|
|
|
354.9
|
|
||
Accrued compensation and benefits
|
1,773.3
|
|
|
2,496.5
|
|
||
Due to affiliates
|
456.1
|
|
|
542.1
|
|
||
Deferred revenue
|
296.3
|
|
|
71.0
|
|
||
Deferred tax liabilities
|
36.4
|
|
|
65.2
|
|
||
Other liabilities of Consolidated Funds
|
471.0
|
|
|
316.1
|
|
||
Lease liabilities
|
273.8
|
|
|
288.2
|
|
||
Accrued giveback obligations
|
22.4
|
|
|
22.2
|
|
||
Total liabilities
|
10,015.5
|
|
|
10,839.2
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Partners’ capital (common units, 117,840,651 issued and outstanding as of December 31, 2019)
|
—
|
|
|
703.8
|
|
||
Common stock, $0.01 par value, 100,000,000,000 shares authorized (348,358,623 shares issued and outstanding as of March 31, 2020)
|
3.5
|
|
|
—
|
|
||
Additional paid-in-capital
|
2,569.0
|
|
|
—
|
|
||
Retained earnings (deficit)
|
(612.0
|
)
|
|
—
|
|
||
Accumulated other comprehensive loss
|
(95.1
|
)
|
|
(85.2
|
)
|
||
Non-controlling interests in consolidated entities
|
203.7
|
|
|
333.5
|
|
||
Non-controlling interests in Carlyle Holdings
|
—
|
|
|
2,017.5
|
|
||
Total equity
|
2,069.1
|
|
|
2,969.6
|
|
||
Total liabilities and equity
|
$
|
12,084.6
|
|
|
$
|
13,808.8
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Revenues
|
|
|
|
||||
Fund management fees
|
$
|
355.9
|
|
|
$
|
353.4
|
|
Incentive fees
|
8.9
|
|
|
8.1
|
|
||
Investment income (loss)
|
|
|
|
||||
Performance allocations
|
(937.6
|
)
|
|
349.1
|
|
||
Principal investment income (loss)
|
(253.3
|
)
|
|
301.8
|
|
||
Total investment income (loss)
|
(1,190.9
|
)
|
|
650.9
|
|
||
Interest and other income
|
27.4
|
|
|
22.2
|
|
||
Interest and other income of Consolidated Funds
|
53.0
|
|
|
52.4
|
|
||
Total revenues
|
(745.7
|
)
|
|
1,087.0
|
|
||
Expenses
|
|
|
|
||||
Compensation and benefits
|
|
|
|
||||
Cash-based compensation and benefits
|
204.3
|
|
|
210.5
|
|
||
Equity-based compensation
|
29.1
|
|
|
36.0
|
|
||
Performance allocations and incentive fee related compensation
|
(442.5
|
)
|
|
185.4
|
|
||
Total compensation and benefits
|
(209.1
|
)
|
|
431.9
|
|
||
General, administrative and other expenses
|
69.6
|
|
|
112.5
|
|
||
Interest
|
23.9
|
|
|
19.7
|
|
||
Interest and other expenses of Consolidated Funds
|
45.6
|
|
|
38.1
|
|
||
Other non-operating expenses
|
0.2
|
|
|
0.3
|
|
||
Total expenses
|
(69.8
|
)
|
|
602.5
|
|
||
Other income (loss)
|
|
|
|
||||
Net investment losses of Consolidated Funds
|
(113.1
|
)
|
|
(14.2
|
)
|
||
Income (loss) before provision for income taxes
|
(789.0
|
)
|
|
470.3
|
|
||
Provision (benefit) for income taxes
|
(80.0
|
)
|
|
24.0
|
|
||
Net income (loss)
|
(709.0
|
)
|
|
446.3
|
|
||
Net loss attributable to non-controlling interests in consolidated entities
|
(97.0
|
)
|
|
(4.5
|
)
|
||
Net income (loss) attributable to Carlyle Holdings
|
(612.0
|
)
|
|
450.8
|
|
||
Net income attributable to non-controlling interests in Carlyle Holdings
|
—
|
|
|
307.9
|
|
||
Net income (loss) attributable to The Carlyle Group Inc.
|
(612.0
|
)
|
|
142.9
|
|
||
Net income attributable to Series A Preferred Unitholders
|
—
|
|
|
5.9
|
|
||
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders
|
$
|
(612.0
|
)
|
|
$
|
137.0
|
|
Net income (loss) attributable to The Carlyle Group Inc. per common share (see Note 11)
|
|
|
|
||||
Basic
|
$
|
(1.76
|
)
|
|
$
|
1.25
|
|
Diluted
|
$
|
(1.76
|
)
|
|
$
|
1.18
|
|
Weighted-average common shares
|
|
|
|
||||
Basic
|
348,239,759
|
|
|
109,210,460
|
|
||
Diluted
|
348,239,759
|
|
|
115,818,538
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Net income (loss)
|
$
|
(709.0
|
)
|
|
$
|
446.3
|
|
Other comprehensive income (loss)
|
|
|
|
||||
Foreign currency translation adjustments
|
(22.9
|
)
|
|
1.9
|
|
||
Unrealized gains (losses) on Fortitude Re available-for-sale securities
|
(7.7
|
)
|
|
5.6
|
|
||
Defined benefit plans
|
|
|
|
||||
Unrealized gain (loss) for the period
|
(3.2
|
)
|
|
1.7
|
|
||
Less: reclassification adjustment for gain during the period, included in cash-based compensation and benefits expense
|
0.4
|
|
|
0.3
|
|
||
Other comprehensive income (loss)
|
(33.4
|
)
|
|
9.5
|
|
||
Comprehensive income (loss)
|
(742.4
|
)
|
|
455.8
|
|
||
Comprehensive loss attributable to non-controlling interests in consolidated entities
|
(109.7
|
)
|
|
(4.2
|
)
|
||
Comprehensive income (loss) attributable to Carlyle Holdings
|
(632.7
|
)
|
|
460.0
|
|
||
Comprehensive income attributable to non-controlling interests in Carlyle Holdings
|
—
|
|
|
314.0
|
|
||
Comprehensive income (loss) attributable to The Carlyle Group Inc.
|
$
|
(632.7
|
)
|
|
$
|
146.0
|
|
|
Common
Units |
|
Common Shares
|
|
Partners’
Capital |
|
Common Stock
|
|
Additional Paid-in-Capital
|
|
Retained Earnings (Deficit)
|
|
Accumulated
Other Comprehensive Income (Loss) |
|
Non-
controlling Interests in Consolidated Entities |
|
Non-
controlling Interests in Carlyle Holdings |
|
Total
Equity |
||||||||||||||||||
Balance at December 31, 2019
|
117.8
|
|
|
—
|
|
|
$
|
703.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(85.2
|
)
|
|
$
|
333.5
|
|
|
$
|
2,017.5
|
|
|
$
|
2,969.6
|
|
Reclassification resulting from Conversion - Partners' Capital
|
(117.8
|
)
|
|
117.8
|
|
|
(703.8
|
)
|
|
1.2
|
|
|
702.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Reclassification resulting from Conversion - Non-controlling Interest in Carlyle Holdings
|
—
|
|
|
229.4
|
|
|
—
|
|
|
2.3
|
|
|
2,015.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,017.5
|
)
|
|
—
|
|
||||||||
Shares repurchased
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|
(26.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26.4
|
)
|
||||||||
Tax effects resulting from Conversion
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(64.4
|
)
|
|
—
|
|
|
10.8
|
|
|
—
|
|
|
—
|
|
|
(53.6
|
)
|
||||||||
Equity-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.4
|
|
||||||||
Shares issued for equity-based awards
|
—
|
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.2
|
|
|
—
|
|
|
4.2
|
|
||||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(87.4
|
)
|
|
—
|
|
|
—
|
|
|
(24.3
|
)
|
|
—
|
|
|
(111.7
|
)
|
||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(612.0
|
)
|
|
—
|
|
|
(97.0
|
)
|
|
—
|
|
|
(709.0
|
)
|
||||||||
Currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.2
|
)
|
|
(12.7
|
)
|
|
—
|
|
|
(22.9
|
)
|
||||||||
Unrealized loss on Fortitude Re available-for-sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.7
|
)
|
|
—
|
|
|
—
|
|
|
(7.7
|
)
|
||||||||
Defined benefit plans, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
||||||||
Balance at March 31, 2020
|
—
|
|
|
348.4
|
|
|
$
|
—
|
|
|
$
|
3.5
|
|
|
$
|
2,569.0
|
|
|
$
|
(612.0
|
)
|
|
$
|
(95.1
|
)
|
|
$
|
203.7
|
|
|
$
|
—
|
|
|
$
|
2,069.1
|
|
|
Common
Units |
|
Preferred Equity
|
|
Partners’
Capital |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Non-
controlling Interests in Consolidated Entities |
|
Non-
controlling Interests in Carlyle Holdings |
|
Total
Partners’ Capital |
|||||||||||||
Balance at December 31, 2018
|
107.7
|
|
|
$
|
387.5
|
|
|
$
|
673.4
|
|
|
$
|
(83.3
|
)
|
|
$
|
324.2
|
|
|
$
|
1,534.5
|
|
|
$
|
2,836.3
|
|
Reallocation of ownership interests in Carlyle Holdings
|
—
|
|
|
—
|
|
|
13.3
|
|
|
(1.1
|
)
|
|
—
|
|
|
(12.2
|
)
|
|
—
|
|
||||||
Exchange of Carlyle Holdings units for common units
|
0.2
|
|
|
—
|
|
|
1.4
|
|
|
(0.2
|
)
|
|
—
|
|
|
(1.2
|
)
|
|
—
|
|
||||||
Units repurchased
|
(0.6
|
)
|
|
—
|
|
|
(10.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.4
|
)
|
||||||
Deferred tax effects resulting from acquisition of interests in Carlyle Holdings
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||||
Equity-based compensation
|
—
|
|
|
—
|
|
|
12.0
|
|
|
—
|
|
|
—
|
|
|
25.4
|
|
|
37.4
|
|
||||||
Issuances of common units for equity-based awards
|
2.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
||||||
Distributions
|
—
|
|
|
(5.9
|
)
|
|
(47.4
|
)
|
|
—
|
|
|
(32.2
|
)
|
|
(99.4
|
)
|
|
(184.9
|
)
|
||||||
Net income
|
—
|
|
|
5.9
|
|
|
137.0
|
|
|
—
|
|
|
(4.5
|
)
|
|
307.9
|
|
|
446.3
|
|
||||||
Cumulative effect adjustment upon adoption of ASU 2016-2
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.7
|
)
|
||||||
Currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
0.3
|
|
|
0.9
|
|
|
1.9
|
|
||||||
Unrealized gains on Fortitude Re available-for-sale securities
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
|
3.8
|
|
|
5.6
|
|
||||||
Defined benefit plans, net
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
1.4
|
|
|
2.0
|
|
||||||
Balance at March 31, 2019
|
110.1
|
|
|
$
|
387.5
|
|
|
$
|
779.2
|
|
|
$
|
(81.5
|
)
|
|
$
|
290.0
|
|
|
$
|
1,760.6
|
|
|
$
|
3,135.8
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income (loss)
|
$
|
(709.0
|
)
|
|
$
|
446.3
|
|
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
12.6
|
|
|
14.8
|
|
||
Equity-based compensation
|
29.1
|
|
|
36.0
|
|
||
Non-cash performance allocations and incentive fees
|
550.5
|
|
|
(167.8
|
)
|
||
Non-cash principal investment (income) loss
|
252.1
|
|
|
(299.7
|
)
|
||
Other non-cash amounts
|
(9.5
|
)
|
|
11.1
|
|
||
Consolidated Funds related:
|
|
|
|
||||
Realized/unrealized (gain) loss on investments of Consolidated Funds
|
932.7
|
|
|
(1.1
|
)
|
||
Realized/unrealized (gain) loss from loans payable of Consolidated Funds
|
(819.6
|
)
|
|
15.3
|
|
||
Purchases of investments by Consolidated Funds
|
(807.5
|
)
|
|
(310.4
|
)
|
||
Proceeds from sale and settlements of investments by Consolidated Funds
|
327.2
|
|
|
598.8
|
|
||
Non-cash interest income, net
|
(1.2
|
)
|
|
(0.8
|
)
|
||
Change in cash and cash equivalents held at Consolidated Funds
|
(51.4
|
)
|
|
14.1
|
|
||
Change in other receivables held at Consolidated Funds
|
(15.9
|
)
|
|
88.1
|
|
||
Change in other liabilities held at Consolidated Funds
|
162.3
|
|
|
(225.2
|
)
|
||
Other non-cash amounts of Consolidated Funds
|
(0.2
|
)
|
|
—
|
|
||
Purchases of investments
|
(42.7
|
)
|
|
(71.3
|
)
|
||
Proceeds from the sale of investments
|
99.8
|
|
|
138.7
|
|
||
Changes in deferred taxes, net
|
(101.0
|
)
|
|
14.7
|
|
||
Change in due from affiliates and other receivables
|
11.1
|
|
|
59.9
|
|
||
Change in deposits and other
|
(2.1
|
)
|
|
(8.4
|
)
|
||
Change in accounts payable, accrued expenses and other liabilities
|
(54.0
|
)
|
|
(68.9
|
)
|
||
Change in accrued compensation and benefits
|
(196.6
|
)
|
|
(137.6
|
)
|
||
Change in due to affiliates
|
(35.2
|
)
|
|
(2.2
|
)
|
||
Change in lease right-of-use assets and lease liabilities
|
(3.3
|
)
|
|
(1.1
|
)
|
||
Change in deferred revenue
|
225.9
|
|
|
197.7
|
|
||
Net cash (used in) provided by operating activities
|
(245.9
|
)
|
|
341.0
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchases of fixed assets, net
|
(13.2
|
)
|
|
(7.1
|
)
|
||
Net cash used in investing activities
|
(13.2
|
)
|
|
(7.1
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Borrowings under credit facilities
|
251.0
|
|
|
—
|
|
||
Repayments under credit facilities
|
(35.8
|
)
|
|
—
|
|
||
Repayment of term loan
|
—
|
|
|
(25.0
|
)
|
||
Payments on debt obligations
|
(0.3
|
)
|
|
(6.8
|
)
|
||
Proceeds from debt obligations, net of financing costs
|
—
|
|
|
20.5
|
|
||
Net borrowings (payments) on loans payable of Consolidated Funds
|
393.3
|
|
|
(157.1
|
)
|
||
Dividends to common stockholders
|
(87.4
|
)
|
|
(47.4
|
)
|
||
Distributions to preferred unitholders
|
—
|
|
|
(5.9
|
)
|
||
Distributions to non-controlling interest holders in Carlyle Holdings
|
—
|
|
|
(99.4
|
)
|
||
Payment of deferred consideration for Carlyle Holdings units
|
(68.8
|
)
|
|
—
|
|
||
Contributions from non-controlling interest holders
|
4.2
|
|
|
2.2
|
|
||
Distributions to non-controlling interest holders
|
(24.3
|
)
|
|
(9.8
|
)
|
||
Common shares repurchased
|
(26.4
|
)
|
|
(10.4
|
)
|
||
Change in due to/from affiliates financing activities
|
51.1
|
|
|
87.3
|
|
||
Net cash provided by (used in) financing activities
|
456.6
|
|
|
(251.8
|
)
|
||
Effect of foreign exchange rate changes
|
(17.0
|
)
|
|
7.7
|
|
||
Increase in cash, cash equivalents and restricted cash
|
180.5
|
|
|
89.8
|
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
828.0
|
|
|
638.3
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
1,008.5
|
|
|
$
|
728.1
|
|
Supplemental non-cash disclosures
|
|
|
|
||||
Tax effects from the conversion to a Corporation recorded in equity
|
$
|
53.6
|
|
|
$
|
—
|
|
Net increase in partners’ capital and accumulated other comprehensive income related to reallocation of ownership interest in Carlyle Holdings
|
$
|
—
|
|
|
$
|
12.2
|
|
Non-cash distributions to non-controlling interest holders
|
$
|
—
|
|
|
$
|
(22.4
|
)
|
Net asset impact of deconsolidation of Consolidated Funds
|
$
|
—
|
|
|
$
|
(13.1
|
)
|
Tax effect from acquisition of Carlyle Holdings partnership units:
|
|
|
|
||||
Deferred tax asset
|
$
|
—
|
|
|
$
|
0.6
|
|
Tax receivable agreement liability
|
$
|
—
|
|
|
$
|
0.5
|
|
Total partners’ capital
|
$
|
—
|
|
|
$
|
0.1
|
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents and restricted cash, end of period:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,007.9
|
|
|
$
|
723.0
|
|
Restricted cash
|
0.6
|
|
|
5.1
|
|
||
Total cash, cash equivalents and restricted cash, end of period
|
$
|
1,008.5
|
|
|
$
|
728.1
|
|
|
|
|
|
||||
Cash and cash equivalents held at Consolidated Funds
|
$
|
170.9
|
|
|
$
|
213.9
|
|
|
As of
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Investments
|
$
|
939.3
|
|
|
$
|
1,029.5
|
|
Accrued performance revenues
|
115.6
|
|
|
160.2
|
|
||
Management fee receivables
|
27.4
|
|
|
35.4
|
|
||
Total
|
$
|
1,082.3
|
|
|
$
|
1,225.1
|
|
•
|
Reimbursable fund expenses receivables,
|
•
|
Management fee receivables,
|
•
|
Incentive fee receivables,
|
•
|
Transaction fee receivables,
|
•
|
Portfolio fee receivables, and
|
•
|
Notes receivable.
|
|
As of
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Currency translation adjustments
|
$
|
(84.5
|
)
|
|
$
|
(85.1
|
)
|
Unrealized losses on defined benefit plans
|
(9.4
|
)
|
|
(6.6
|
)
|
||
Fortitude Re available-for-sale securities
|
(1.2
|
)
|
|
6.5
|
|
||
Total
|
$
|
(95.1
|
)
|
|
$
|
(85.2
|
)
|
(Dollars in millions)
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Investments of Consolidated Funds:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91.2
|
|
|
$
|
91.2
|
|
Bonds
|
—
|
|
|
—
|
|
|
423.9
|
|
|
423.9
|
|
||||
Loans
|
—
|
|
|
—
|
|
|
3,950.2
|
|
|
3,950.2
|
|
||||
|
—
|
|
|
—
|
|
|
4,465.3
|
|
|
4,465.3
|
|
||||
Investments in CLOs and other
|
—
|
|
|
—
|
|
|
396.4
|
|
|
396.4
|
|
||||
Foreign currency forward contracts
|
—
|
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
||||
Total
|
$
|
—
|
|
|
$
|
1.5
|
|
|
$
|
4,861.7
|
|
|
$
|
4,863.2
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Loans payable of Consolidated Funds(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,090.8
|
|
|
$
|
4,090.8
|
|
Foreign currency forward contracts
|
—
|
|
|
3.6
|
|
|
—
|
|
|
3.6
|
|
||||
Total
|
$
|
—
|
|
|
$
|
3.6
|
|
|
$
|
4,090.8
|
|
|
$
|
4,094.4
|
|
(1)
|
Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial assets, less (i) the fair value of any beneficial interests held by the Company 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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19.4
|
|
|
$
|
19.4
|
|
Bonds
|
—
|
|
|
—
|
|
|
574.1
|
|
|
574.1
|
|
||||
Loans
|
—
|
|
|
—
|
|
|
4,413.8
|
|
|
4,413.8
|
|
||||
|
—
|
|
|
—
|
|
|
5,007.3
|
|
|
5,007.3
|
|
||||
Investments in CLOs and other
|
—
|
|
|
—
|
|
|
496.2
|
|
|
496.2
|
|
||||
Foreign currency forward contracts
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
||||
Total
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
5,503.5
|
|
|
$
|
5,503.6
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Loans payable of Consolidated Funds(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,685.2
|
|
|
$
|
4,685.2
|
|
Foreign currency forward contracts
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
||||
Total
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
4,685.2
|
|
|
$
|
4,685.5
|
|
(1)
|
Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent compensation for services.
|
|
Financial Assets
|
||||||||||||||||||
|
Three Months Ended March 31, 2020
|
||||||||||||||||||
|
Investments of Consolidated Funds
|
|
|
|
|||||||||||||||
|
Equity
securities |
|
Bonds
|
|
Loans
|
|
Investments in CLOs and other
|
|
Total
|
||||||||||
Balance, beginning of period
|
$
|
19.4
|
|
|
$
|
574.1
|
|
|
$
|
4,413.8
|
|
|
$
|
496.2
|
|
|
$
|
5,503.5
|
|
Purchases
|
79.3
|
|
|
50.6
|
|
|
677.6
|
|
|
18.1
|
|
|
825.6
|
|
|||||
Sales and distributions
|
—
|
|
|
(67.1
|
)
|
|
(156.9
|
)
|
|
(43.9
|
)
|
|
(267.9
|
)
|
|||||
Settlements
|
—
|
|
|
—
|
|
|
(103.2
|
)
|
|
—
|
|
|
(103.2
|
)
|
|||||
Realized and unrealized gains (losses), net
|
|
|
|
|
|
|
|
|
|
||||||||||
Included in earnings
|
(7.5
|
)
|
|
(121.2
|
)
|
|
(801.0
|
)
|
|
(61.4
|
)
|
|
(991.1
|
)
|
|||||
Included in other comprehensive income
|
—
|
|
|
(12.5
|
)
|
|
(80.1
|
)
|
|
(12.6
|
)
|
|
(105.2
|
)
|
|||||
Balance, end of period
|
$
|
91.2
|
|
|
$
|
423.9
|
|
|
$
|
3,950.2
|
|
|
$
|
396.4
|
|
|
$
|
4,861.7
|
|
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date
|
$
|
(7.5
|
)
|
|
$
|
(121.3
|
)
|
|
$
|
(801.0
|
)
|
|
$
|
(61.4
|
)
|
|
$
|
(991.2
|
)
|
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date
|
$
|
—
|
|
|
$
|
(11.0
|
)
|
|
$
|
(72.6
|
)
|
|
$
|
(12.6
|
)
|
|
$
|
(96.2
|
)
|
|
Financial Assets
|
|||||||||||||||
|
Three Months Ended March 31, 2019
|
|||||||||||||||
|
Investments of Consolidated Funds
|
|
|
|
||||||||||||
|
|
Bonds
|
|
Loans
|
|
Investments in CLOs and other
|
|
Total
|
||||||||
Balance, beginning of period
|
|
$
|
690.1
|
|
|
$
|
4,596.5
|
|
|
$
|
446.4
|
|
|
$
|
5,733.0
|
|
Deconsolidation of funds(1)
|
|
—
|
|
|
(883.7
|
)
|
|
1.7
|
|
|
(882.0
|
)
|
||||
Purchases
|
|
69.5
|
|
|
240.9
|
|
|
29.7
|
|
|
340.1
|
|
||||
Sales and distributions
|
|
(100.3
|
)
|
|
(368.2
|
)
|
|
(4.0
|
)
|
|
(472.5
|
)
|
||||
Settlements
|
|
—
|
|
|
(130.3
|
)
|
|
—
|
|
|
(130.3
|
)
|
||||
Realized and unrealized gains (losses), net
|
|
|
|
|
|
|
|
|
||||||||
Included in earnings
|
|
7.6
|
|
|
(5.8
|
)
|
|
(4.1
|
)
|
|
(2.3
|
)
|
||||
Included in other comprehensive income
|
|
(13.5
|
)
|
|
(71.8
|
)
|
|
2.6
|
|
|
(82.7
|
)
|
||||
Balance, end of period
|
|
$
|
653.4
|
|
|
$
|
3,377.6
|
|
|
$
|
472.3
|
|
|
$
|
4,503.3
|
|
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date
|
|
$
|
6.5
|
|
|
$
|
(16.1
|
)
|
|
$
|
(4.1
|
)
|
|
$
|
(13.7
|
)
|
|
Financial Liabilities
|
||||||
|
Loans Payable of Consolidated Funds
|
||||||
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Balance, beginning of period
|
$
|
4,685.2
|
|
|
$
|
4,840.1
|
|
Deconsolidation/consolidation of funds
|
—
|
|
|
(870.6
|
)
|
||
Borrowings
|
1,038.4
|
|
|
142.4
|
|
||
Paydowns
|
(729.0
|
)
|
|
(299.5
|
)
|
||
Realized and unrealized (gains) losses, net
|
|
|
|
||||
Included in earnings
|
(816.6
|
)
|
|
15.2
|
|
||
Included in other comprehensive income
|
(87.2
|
)
|
|
(77.6
|
)
|
||
Balance, end of period
|
$
|
4,090.8
|
|
|
$
|
3,750.0
|
|
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date
|
$
|
(816.9
|
)
|
|
$
|
2.7
|
|
Changes in unrealized (gains) losses included in other comprehensive income related to financial liabilities still held at the reporting date
|
$
|
(79.6
|
)
|
|
$
|
—
|
|
|
Fair Value at
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range
(Weighted Average) |
||
(Dollars in millions)
|
March 31, 2020
|
|
|
|
|||||
Assets
|
|
|
|
|
|
|
|
||
Investments of Consolidated Funds:
|
|
|
|
|
|
|
|
||
Equity securities
|
$
|
0.7
|
|
|
Consensus Pricing
|
|
Indicative Quotes ($ per share)
|
|
0.00 - 0.21 (0.02)
|
|
90.5
|
|
|
Discounted Cash Flow
|
|
Discount Rates
|
|
8% - 8% (8%)
|
|
|
|
|
|
|
|
|
|
||
Bonds
|
423.9
|
|
|
Consensus Pricing
|
|
Indicative Quotes (% of Par)
|
|
0 - 101 (76)
|
|
Loans
|
3,950.2
|
|
|
Consensus Pricing
|
|
Indicative Quotes (% of Par)
|
|
2 - 100 (81)
|
|
|
4,465.3
|
|
|
|
|
|
|
|
|
Investments in CLOs and other:
|
|
|
|
|
|
|
|
||
Senior secured notes
|
351.3
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Margins (Basis Points)
|
|
3 - 3,000 (425)
|
|
|
|
|
|
|
Default Rates
|
|
2% - 7% (4%)
|
||
|
|
|
|
|
Recovery Rates
|
|
40% - 60% (48%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
28 - 100 (88)
|
||
Subordinated notes and preferred shares
|
27.5
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Rates
|
|
20% - 40% (32%)
|
|
|
|
|
|
|
Default Rates
|
|
2% - 7% (4%)
|
||
|
|
|
|
|
Recovery Rates
|
|
40% - 60% (49%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
10 - 41 (29)
|
||
Aviation subordinated notes
|
7.0
|
|
|
Discounted Cash Flow
|
|
Discount Rates
|
|
24% - 24% (24%)
|
|
Loans
|
10.6
|
|
|
Consensus Pricing
|
|
Indicative Quotes (% of Par)
|
|
93 - 94 (93)
|
|
Total
|
$
|
4,861.7
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
||
Loans payable of Consolidated Funds:
|
|
|
|
|
|
|
|
||
Senior secured notes
|
$
|
3,977.3
|
|
|
Other (1)
|
|
N/A
|
|
N/A
|
Subordinated notes and preferred shares
|
113.5
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Rates
|
|
20% - 40% (28%)
|
|
|
|
|
|
|
Default Rates
|
|
2% - 7% (5%)
|
||
|
|
|
|
|
Recovery Rates
|
|
40% - 60% (46%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
22 - 60 (37)
|
||
Total
|
$
|
4,090.8
|
|
|
|
|
|
|
|
(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 Company and (ii) the carrying value of any beneficial interests that represent compensation for services.
|
|
Fair Value at
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range
(Weighted Average) |
||
(Dollars in millions)
|
December 31, 2019
|
|
|
|
|||||
Assets
|
|
|
|
|
|
|
|
||
Investments of Consolidated Funds:
|
|
|
|
|
|
|
|
||
Equity securities
|
$
|
1.6
|
|
|
Consensus Pricing
|
|
Indicative Quotes ($ per share)
|
|
0.01 - 25.18 (0.04)
|
|
17.8
|
|
|
Discounted Cash Flow
|
|
Discount Rates
|
|
8% - 8% (8%)
|
|
|
|
|
|
|
|
|
|
||
Bonds
|
574.1
|
|
|
Consensus Pricing
|
|
Indicative Quotes (% of Par)
|
|
0 - 108 (98)
|
|
Loans
|
4,413.8
|
|
|
Consensus Pricing
|
|
Indicative Quotes (% of Par)
|
|
38 - 101 (97)
|
|
|
5,007.3
|
|
|
|
|
|
|
|
|
Investments in CLOs and other
|
|
|
|
|
|
|
|
||
Senior secured notes
|
399.4
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Margins (Basis Points)
|
|
50 - 1,450 (210)
|
|
|
|
|
|
|
Default Rates
|
|
1% - 4% (2%)
|
||
|
|
|
|
|
Recovery Rates
|
|
45% - 75% (58%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
75 - 100 (98)
|
||
Subordinated notes and preferred shares
|
55.1
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Rate
|
|
10% - 15% (12%)
|
|
|
|
|
|
|
Default Rates
|
|
1% - 4% (2%)
|
||
|
|
|
|
|
Recovery Rates
|
|
45% - 75% (57%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
33 - 89 (57)
|
||
Aviation subordinated notes
|
4.3
|
|
|
Discounted Cash Flow
|
|
Discount Rates
|
|
15% - 15% (15%)
|
|
Loans
|
37.4
|
|
|
Consensus Pricing
|
|
Indicative Quotes (% of Par)
|
|
99 - 100 (99)
|
|
Total
|
$
|
5,503.5
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
||
Loans payable of Consolidated Funds:
|
|
|
|
|
|
|
|
||
Senior secured notes
|
$
|
4,446.4
|
|
|
Other (1)
|
|
N/A
|
|
N/A
|
Subordinated notes and preferred shares
|
238.8
|
|
|
Discounted Cash Flow with Consensus Pricing
|
|
Discount Rates
|
|
10% - 15% (13%)
|
|
|
|
|
|
|
Default Rates
|
|
1% - 4% (3%)
|
||
|
|
|
|
|
Recovery Rates
|
|
45% - 75% (61%)
|
||
|
|
|
|
|
Indicative Quotes (% of Par)
|
|
40 - 82 (62)
|
||
Total
|
$
|
4,685.2
|
|
|
|
|
|
|
|
(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 Company and (ii) the carrying value of any beneficial interests that represent compensation for services.
|
|
As of
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Accrued performance allocations
|
$
|
2,752.1
|
|
|
$
|
3,855.6
|
|
Principal equity method investments, excluding performance allocations
|
2,232.3
|
|
|
2,443.6
|
|
||
Principal investments in CLOs and other
|
406.7
|
|
|
505.2
|
|
||
Total
|
$
|
5,391.1
|
|
|
$
|
6,804.4
|
|
|
As of
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Corporate Private Equity
|
$
|
1,424.4
|
|
|
$
|
2,107.5
|
|
Real Assets
|
535.6
|
|
|
764.4
|
|
||
Global Credit
|
52.8
|
|
|
136.9
|
|
||
Investment Solutions (1)
|
739.3
|
|
|
846.8
|
|
||
Total
|
$
|
2,752.1
|
|
|
$
|
3,855.6
|
|
|
As of
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Corporate Private Equity
|
$
|
(5.4
|
)
|
|
$
|
(5.0
|
)
|
Real Assets
|
(16.9
|
)
|
|
(17.2
|
)
|
||
Global Credit
|
(0.1
|
)
|
|
—
|
|
||
Total
|
$
|
(22.4
|
)
|
|
$
|
(22.2
|
)
|
|
As of
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Corporate Private Equity
|
$
|
369.1
|
|
|
$
|
420.1
|
|
Real Assets
|
574.8
|
|
|
601.7
|
|
||
Global Credit
|
1,166.9
|
|
|
1,299.6
|
|
||
Investment Solutions
|
121.5
|
|
|
122.2
|
|
||
Total
|
$
|
2,232.3
|
|
|
$
|
2,443.6
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Revenues
|
$
|
229.0
|
|
|
$
|
594.0
|
|
Expenses
|
459.0
|
|
|
440.0
|
|
||
Operating income (loss)
|
(230.0
|
)
|
|
154.0
|
|
||
Investment gains (losses)
|
89.0
|
|
|
(32.0
|
)
|
||
Change in value of funds withheld embedded derivatives
|
(567.0
|
)
|
|
1,521.0
|
|
||
Income tax expense (benefit)
|
(148.0
|
)
|
|
345.0
|
|
||
Net income (loss)
|
$
|
(560.0
|
)
|
|
$
|
1,298.0
|
|
|
As of
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Investment in NGP Management
|
$
|
379.3
|
|
|
$
|
383.6
|
|
Principal investments in NGP funds
|
54.7
|
|
|
67.9
|
|
||
Total investments in NGP
|
$
|
434.0
|
|
|
$
|
451.5
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Management fee-related revenues from NGP Management
|
$
|
18.8
|
|
|
$
|
25.2
|
|
Expenses related to the investment in NGP Management
|
(2.8
|
)
|
|
(2.5
|
)
|
||
Amortization of basis differences from the investment in NGP Management
|
(1.1
|
)
|
|
(1.4
|
)
|
||
Net investment income from NGP Management
|
$
|
14.9
|
|
|
$
|
21.3
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Performance allocations
|
|
|
|
||||
Realized
|
$
|
173.8
|
|
|
$
|
29.8
|
|
Unrealized
|
(1,111.4
|
)
|
|
319.3
|
|
||
|
(937.6
|
)
|
|
349.1
|
|
||
Principal investment income from equity method investments (excluding performance allocations)
|
|
|
|
||||
Realized
|
30.6
|
|
|
31.3
|
|
||
Unrealized
|
(211.7
|
)
|
|
271.3
|
|
||
|
(181.1
|
)
|
|
302.6
|
|
||
Principal investment income (loss) from investments in CLOs and other investments
|
|
|
|
||||
Realized
|
0.2
|
|
|
0.9
|
|
||
Unrealized
|
(72.4
|
)
|
|
(1.7
|
)
|
||
|
(72.2
|
)
|
|
(0.8
|
)
|
||
Total
|
$
|
(1,190.9
|
)
|
|
$
|
650.9
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Corporate Private Equity
|
$
|
(604.9
|
)
|
|
$
|
132.8
|
|
Real Assets
|
(204.4
|
)
|
|
109.4
|
|
||
Global Credit
|
(63.0
|
)
|
|
29.6
|
|
||
Investment Solutions
|
(65.3
|
)
|
|
77.3
|
|
||
Total
|
$
|
(937.6
|
)
|
|
$
|
349.1
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Corporate Private Equity
|
$
|
(37.7
|
)
|
|
$
|
8.2
|
|
Real Assets
|
(12.3
|
)
|
|
33.5
|
|
||
Global Credit
|
(130.6
|
)
|
|
256.9
|
|
||
Investment Solutions
|
(0.5
|
)
|
|
4.0
|
|
||
Total
|
$
|
(181.1
|
)
|
|
$
|
302.6
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Interest income from investments
|
$
|
51.1
|
|
|
$
|
51.0
|
|
Other income
|
1.9
|
|
|
1.4
|
|
||
Total
|
$
|
53.0
|
|
|
$
|
52.4
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Gains (losses) from investments of Consolidated Funds
|
$
|
(932.7
|
)
|
|
$
|
1.1
|
|
Gains (losses) from liabilities of CLOs
|
819.6
|
|
|
(15.3
|
)
|
||
Total
|
$
|
(113.1
|
)
|
|
$
|
(14.2
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Realized losses
|
$
|
(0.5
|
)
|
|
$
|
(8.0
|
)
|
Net change in unrealized gains (losses)
|
(932.2
|
)
|
|
9.1
|
|
||
Total
|
$
|
(932.7
|
)
|
|
$
|
1.1
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
|
Borrowing
Outstanding |
|
Carrying
Value |
|
Borrowing
Outstanding |
|
Carrying
Value |
||||||||
|
(Dollars in millions)
|
||||||||||||||
Senior Credit Facility Due 2/11/2024
|
$
|
250.0
|
|
|
$
|
250.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Global Credit Revolving Credit Facility
|
1.0
|
|
|
1.0
|
|
|
35.8
|
|
|
35.8
|
|
||||
CLO Borrowings (See below)
|
321.8
|
|
|
320.6
|
|
|
324.9
|
|
|
324.0
|
|
||||
3.875% Senior Notes Due 2/01/2023
|
250.0
|
|
|
249.3
|
|
|
250.0
|
|
|
249.3
|
|
||||
5.625% Senior Notes Due 3/30/2043
|
600.0
|
|
|
600.7
|
|
|
600.0
|
|
|
600.7
|
|
||||
5.650% Senior Notes Due 9/15/2048
|
350.0
|
|
|
345.9
|
|
|
350.0
|
|
|
345.8
|
|
||||
3.500% Senior Notes Due 9/19/2029
|
425.0
|
|
|
420.8
|
|
|
425.0
|
|
|
420.7
|
|
||||
Total debt obligations
|
$
|
2,197.8
|
|
|
$
|
2,188.3
|
|
|
$
|
1,985.7
|
|
|
$
|
1,976.3
|
|
Formation Date
|
|
Borrowing Outstanding
March 31, 2020 |
|
|
Borrowing Outstanding
December 31, 2019 |
|
|
Maturity Date (1)
|
|
Interest Rate as of
March 31, 2020 |
|
||||
February 28, 2017
|
|
$
|
73.5
|
|
|
|
$
|
75.3
|
|
|
|
November 17, 2031
|
|
2.33%
|
(2)
|
April 19, 2017
|
|
22.9
|
|
|
|
22.9
|
|
|
|
April 22, 2031
|
|
3.75%
|
(3) (14)
|
||
June 28, 2017
|
|
22.9
|
|
|
|
22.9
|
|
|
|
July 22, 2031
|
|
3.74%
|
(4) (14)
|
||
August 2, 2017
|
|
22.8
|
|
|
|
22.8
|
|
|
|
July 23, 2029
|
|
3.63%
|
(5) (14)
|
||
August 2, 2017
|
|
19.1
|
|
|
|
19.5
|
|
|
|
August 3, 2022
|
|
1.75%
|
(6)
|
||
August 14, 2017
|
|
22.6
|
|
|
|
22.6
|
|
|
|
August 15, 2030
|
|
3.55%
|
(7) (14)
|
||
November 30, 2017
|
|
22.7
|
|
|
|
22.7
|
|
|
|
January 16, 2030
|
|
3.56%
|
(8)(14)(16)
|
||
December 6, 2017
|
|
19.1
|
|
|
|
19.1
|
|
|
|
October 16, 2030
|
|
3.48%
|
(9)(14)(16)
|
||
December 7, 2017
|
|
20.8
|
|
|
|
20.8
|
|
|
|
January 19, 2029
|
|
3.18%
|
(10)(14)(16)
|
||
January 30, 2018
|
|
19.2
|
|
|
|
19.2
|
|
|
|
January 22, 2030
|
|
3.44%
|
(11)(14)(16)
|
||
March 1, 2018
|
|
15.4
|
|
|
|
15.3
|
|
|
|
January 15, 2031
|
|
3.38%
|
(12)(14)(16)
|
||
March 15, 2019
|
|
20.3
|
|
|
|
20.8
|
|
|
|
March 15, 2032
|
|
2.62%
|
(13)
|
||
August 20, 2019
|
|
20.5
|
|
|
|
21.0
|
|
|
|
August 15, 2032
|
|
2.52%
|
(15)
|
||
|
|
$
|
321.8
|
|
|
|
$
|
324.9
|
|
|
|
|
|
|
|
(2)
|
Outstanding borrowing of €67.0 million; incurs interest at EURIBOR plus applicable margins as defined in the agreement.
|
(3)
|
Incurs interest at LIBOR plus 1.932%.
|
(4)
|
Incurs interest at LIBOR plus 1.923%.
|
(5)
|
Incurs interest at LIBOR plus 1.808%.
|
(6)
|
Original borrowing of €17.4 million; incurs interest at EURIBOR plus 1.75% and has full recourse to the Company.
|
(7)
|
Incurs interest at LIBOR plus 1.848%.
|
(8)
|
Incurs interest at LIBOR plus 1.7312%.
|
(9)
|
Incurs interest at LIBOR plus 1.647%.
|
(10)
|
Incurs interest at LIBOR plus 1.365%.
|
(11)
|
Incurs interest at LIBOR plus 1.624%.
|
(12)
|
Incurs interest at LIBOR plus 1.552%.
|
(14)
|
Term loan issued under master credit agreement.
|
|
|
|
|
|
|
|
Interest Expense
|
|||||||||||||
|
|
|
Fair Value (1)
As of |
|
|
Three Months Ended
March 31, |
||||||||||||||
|
Aggregate Principal Amount
|
|
March 31, 2020
|
|
December 31, 2019
|
|
|
2020
|
|
2019
|
||||||||||
3.875% Senior Notes Due 2/1/2023 (2)(6)
|
$
|
250.0
|
|
|
$
|
249.5
|
|
|
$
|
262.8
|
|
|
|
$
|
2.5
|
|
|
$
|
2.4
|
|
5.625% Senior Notes Due 3/30/2043 (3)
|
600.0
|
|
|
659.0
|
|
|
713.4
|
|
|
|
8.4
|
|
|
8.4
|
|
|||||
5.650% Senior Notes Due 9/15/2048 (4)
|
350.0
|
|
|
374.7
|
|
|
424.0
|
|
|
|
5.0
|
|
|
5.0
|
|
|||||
3.500% Senior Notes Due 9/19/2029 (5)
|
425.0
|
|
|
402.6
|
|
|
430.2
|
|
|
|
3.8
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
$
|
19.7
|
|
|
$
|
15.8
|
|
|
As of March 31, 2020
|
|||||||||||||
|
Borrowing
Outstanding |
|
Fair Value
|
|
Weighted
Average Interest Rate |
|
|
|
Weighted
Average Remaining Maturity in Years |
|||||
Senior secured notes
|
$
|
4,749.3
|
|
|
$
|
3,977.3
|
|
|
2.03
|
%
|
|
|
|
11.13
|
Subordinated notes, preferred shares and other
|
105.5
|
|
|
113.5
|
|
|
N/A
|
|
|
(1)
|
|
11.27
|
||
Total
|
$
|
4,854.8
|
|
|
$
|
4,090.8
|
|
|
|
|
|
|
|
|
As of December 31, 2019
|
|||||||||||||
|
Borrowing
Outstanding |
|
Fair Value
|
|
Weighted
Average Interest Rate |
|
|
|
Weighted
Average Remaining Maturity in Years |
|||||
Senior secured notes
|
$
|
4,534.3
|
|
|
$
|
4,446.4
|
|
|
1.87
|
%
|
|
|
|
10.78
|
Subordinated notes, preferred shares and other
|
214.9
|
|
|
238.8
|
|
|
N/A
|
|
|
(1)
|
|
10.90
|
||
Total
|
$
|
4,749.2
|
|
|
$
|
4,685.2
|
|
|
|
|
|
|
|
(1)
|
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
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Accrued performance allocations and incentive fee-related compensation
|
$
|
1,502.2
|
|
|
$
|
2,038.2
|
|
Accrued bonuses
|
124.4
|
|
|
265.1
|
|
||
Employment-based contingent cash consideration
|
29.7
|
|
|
31.4
|
|
||
Other
|
117.0
|
|
|
161.8
|
|
||
Total
|
$
|
1,773.3
|
|
|
$
|
2,496.5
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Realized
|
$
|
112.9
|
|
|
$
|
44.2
|
|
Unrealized
|
(555.4
|
)
|
|
141.2
|
|
||
Total
|
$
|
(442.5
|
)
|
|
$
|
185.4
|
|
|
Unfunded
Commitments |
||
Corporate Private Equity
|
$
|
2,323.1
|
|
Real Assets
|
953.7
|
|
|
Global Credit
|
379.2
|
|
|
Investment Solutions
|
244.3
|
|
|
Total
|
$
|
3,900.3
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Operating lease cost
|
$
|
11.8
|
|
|
$
|
11.5
|
|
Sublease income
|
(0.6
|
)
|
|
(0.3
|
)
|
||
Total operating lease cost
|
$
|
11.2
|
|
|
$
|
11.2
|
|
|
|
|
|
||||
Cash paid for amounts included in the measurement of operating lease liabilities
|
$
|
14.9
|
|
|
$
|
13.3
|
|
|
|
|
|
||||
Weighted-average remaining lease term
|
9.6 Years
|
|
|
9.9 Years
|
|
||
Weighted-average discount rate
|
5.3
|
%
|
|
5.3
|
%
|
Year ending December 31,
|
|
||
2020 (excluding the three months ended March 31, 2020)
|
$
|
41.0
|
|
2021
|
46.5
|
|
|
2022
|
55.7
|
|
|
2023
|
51.4
|
|
|
2024
|
50.0
|
|
|
Thereafter
|
434.3
|
|
|
Total lease payments
|
$
|
678.9
|
|
Less payments for leases that have not yet commenced
|
(325.4
|
)
|
|
Less imputed interest
|
(79.7
|
)
|
|
Total lease liabilities
|
$
|
273.8
|
|
|
As of
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Accrued incentive fees
|
$
|
9.0
|
|
|
$
|
8.2
|
|
Unbilled receivable for giveback obligations from current and former employees
|
1.4
|
|
|
1.4
|
|
||
Notes receivable and accrued interest from affiliates
|
12.2
|
|
|
10.5
|
|
||
Management fee, reimbursable expenses and other receivables from unconsolidated funds and affiliates, net
|
205.4
|
|
|
253.8
|
|
||
Total
|
$
|
228.0
|
|
|
$
|
273.9
|
|
|
As of
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Due to non-consolidated affiliates
|
$
|
47.7
|
|
|
$
|
65.6
|
|
Deferred consideration for Carlyle Holdings units
|
264.6
|
|
|
332.7
|
|
||
Amounts owed under the tax receivable agreement
|
107.3
|
|
|
107.3
|
|
||
Other
|
36.5
|
|
|
36.5
|
|
||
Total
|
$
|
456.1
|
|
|
$
|
542.1
|
|
|
As of
|
||||||
|
March 31, 2020
|
|
December 31, 2019
|
||||
|
(Dollars in millions)
|
||||||
Non-Carlyle interests in Consolidated Funds
|
$
|
(7.8
|
)
|
|
$
|
0.1
|
|
Non-Carlyle interests in majority-owned subsidiaries
|
205.7
|
|
|
324.5
|
|
||
Non-controlling interest in carried interest, giveback obligations and cash held for carried interest distributions
|
5.8
|
|
|
8.9
|
|
||
Non-controlling interests in consolidated entities
|
$
|
203.7
|
|
|
$
|
333.5
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Non-Carlyle interests in Consolidated Funds
|
$
|
(7.4
|
)
|
|
$
|
—
|
|
Non-Carlyle interests in majority-owned subsidiaries
|
(89.0
|
)
|
|
(7.2
|
)
|
||
Non-controlling interest in carried interest, giveback obligations and cash held for carried interest distributions
|
(0.6
|
)
|
|
2.7
|
|
||
Non-controlling interests in loss of consolidated entities
|
$
|
(97.0
|
)
|
|
$
|
(4.5
|
)
|
|
Three Months Ended
March 31, 2020 |
||||||
|
Basic
|
|
Diluted
|
||||
Net loss attributable to common shares
|
$
|
(612,000,000
|
)
|
|
$
|
(612,000,000
|
)
|
Weighted-average common shares outstanding
|
348,239,759
|
|
|
348,239,759
|
|
||
Net loss per common share
|
$
|
(1.76
|
)
|
|
$
|
(1.76
|
)
|
|
Three Months Ended
March 31, 2019 |
||||||
|
Basic
|
|
Diluted
|
||||
Net income attributable to common shares
|
$
|
137,000,000
|
|
|
$
|
137,000,000
|
|
Weighted-average common shares outstanding
|
109,210,460
|
|
|
115,818,538
|
|
||
Net income per common share
|
$
|
1.25
|
|
|
$
|
1.18
|
|
|
Three Months Ended
March 31, 2020 |
||||
|
Basic
|
|
Diluted
|
||
The Carlyle Group Inc. weighted-average common shares outstanding
|
348,239,759
|
|
|
348,239,759
|
|
Unvested restricted stock units
|
—
|
|
|
—
|
|
Issuable Carlyle Group Inc. common shares
|
—
|
|
|
—
|
|
Weighted-average common shares outstanding
|
348,239,759
|
|
|
348,239,759
|
|
|
Three Months Ended
March 31, 2019 |
||||
|
Basic
|
|
Diluted
|
||
The Carlyle Group Inc. weighted-average common shares outstanding
|
109,210,460
|
|
|
109,210,460
|
|
Unvested restricted stock units
|
—
|
|
|
5,659,577
|
|
Issuable Carlyle Group Inc. common shares
|
—
|
|
|
948,501
|
|
Weighted-average common shares outstanding
|
109,210,460
|
|
|
115,818,538
|
|
Unvested Shares
|
Restricted
Stock Units |
|
Weighted-
Average Grant Date Fair Value |
|
Unvested
Common Shares (1) |
|
Weighted-
Average Grant Date Fair Value |
||||||
Balance, December 31, 2019
|
14,622,159
|
|
|
$
|
17.09
|
|
|
788,290
|
|
|
$
|
20.30
|
|
Granted
|
3,174,430
|
|
|
$
|
29.81
|
|
|
299,401
|
|
|
$
|
33.40
|
|
Vested
|
2,290,161
|
|
|
$
|
18.35
|
|
|
—
|
|
|
$
|
—
|
|
Forfeited
|
422,822
|
|
|
$
|
19.14
|
|
|
—
|
|
|
$
|
—
|
|
Balance, March 31, 2020
|
15,083,606
|
|
|
$
|
19.75
|
|
|
1,087,691
|
|
|
$
|
23.90
|
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||||
|
Corporate
Private Equity |
|
Real
Assets |
|
Global
Credit |
|
Investment Solutions
|
|
Total
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||
Segment Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund level fee revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund management fees
|
$
|
188.5
|
|
|
$
|
80.2
|
|
|
$
|
73.0
|
|
|
$
|
39.8
|
|
|
$
|
381.5
|
|
Portfolio advisory and transaction fees, net and other
|
3.9
|
|
|
0.3
|
|
|
2.6
|
|
|
—
|
|
|
6.8
|
|
|||||
Total fund level fee revenues
|
192.4
|
|
|
80.5
|
|
|
75.6
|
|
|
39.8
|
|
|
388.3
|
|
|||||
Realized performance revenues
|
53.6
|
|
|
11.6
|
|
|
21.0
|
|
|
85.4
|
|
|
171.6
|
|
|||||
Realized principal investment income
|
9.6
|
|
|
0.6
|
|
|
5.1
|
|
|
0.6
|
|
|
15.9
|
|
|||||
Interest income
|
1.2
|
|
|
0.6
|
|
|
3.1
|
|
|
0.4
|
|
|
5.3
|
|
|||||
Total revenues
|
256.8
|
|
|
93.3
|
|
|
104.8
|
|
|
126.2
|
|
|
581.1
|
|
|||||
Segment Expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash-based compensation and benefits
|
94.2
|
|
|
35.5
|
|
|
49.1
|
|
|
25.0
|
|
|
203.8
|
|
|||||
Realized performance revenues related compensation
|
24.3
|
|
|
5.4
|
|
|
9.7
|
|
|
84.0
|
|
|
123.4
|
|
|||||
Total compensation and benefits
|
118.5
|
|
|
40.9
|
|
|
58.8
|
|
|
109.0
|
|
|
327.2
|
|
|||||
General, administrative, and other indirect expenses
|
17.5
|
|
|
19.7
|
|
|
5.6
|
|
|
5.5
|
|
|
48.3
|
|
|||||
Depreciation and amortization expense
|
3.4
|
|
|
1.4
|
|
|
1.6
|
|
|
1.0
|
|
|
7.4
|
|
|||||
Interest expense
|
10.0
|
|
|
3.9
|
|
|
7.0
|
|
|
2.3
|
|
|
23.2
|
|
|||||
Total expenses
|
149.4
|
|
|
65.9
|
|
|
73.0
|
|
|
117.8
|
|
|
406.1
|
|
|||||
Distributable Earnings
|
$
|
107.4
|
|
|
$
|
27.4
|
|
|
$
|
31.8
|
|
|
$
|
8.4
|
|
|
$
|
175.0
|
|
(-) Realized Net Performance Revenues
|
29.3
|
|
|
6.2
|
|
|
11.3
|
|
|
1.4
|
|
|
48.2
|
|
|||||
(-) Realized Principal Investment Income
|
9.6
|
|
|
0.6
|
|
|
5.1
|
|
|
0.6
|
|
|
15.9
|
|
|||||
(+) Net Interest
|
8.8
|
|
|
3.3
|
|
|
3.9
|
|
|
1.9
|
|
|
17.9
|
|
|||||
(=) Fee Related Earnings
|
77.3
|
|
|
23.9
|
|
|
19.3
|
|
|
8.3
|
|
|
128.8
|
|
|||||
Segment assets as of March 31, 2020
|
$
|
2,714.3
|
|
|
$
|
1,416.6
|
|
|
$
|
2,151.5
|
|
|
$
|
1,144.6
|
|
|
$
|
7,427.0
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
Corporate
Private Equity |
|
Real
Assets |
|
Global
Credit |
|
Investment Solutions
|
|
Total
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||
Segment Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund level fee revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Fund management fees
|
$
|
190.0
|
|
|
$
|
77.4
|
|
|
$
|
74.8
|
|
|
$
|
39.4
|
|
|
$
|
381.6
|
|
Portfolio advisory and transaction fees, net and other
|
3.8
|
|
|
3.3
|
|
|
2.9
|
|
|
—
|
|
|
10.0
|
|
|||||
Total fund level fee revenues
|
193.8
|
|
|
80.7
|
|
|
77.7
|
|
|
39.4
|
|
|
391.6
|
|
|||||
Realized performance revenues
|
23.4
|
|
|
4.9
|
|
|
—
|
|
|
20.9
|
|
|
49.2
|
|
|||||
Realized principal investment income
|
(2.3
|
)
|
|
1.6
|
|
|
4.6
|
|
|
0.2
|
|
|
4.1
|
|
|||||
Interest income
|
1.2
|
|
|
0.5
|
|
|
3.8
|
|
|
0.5
|
|
|
6.0
|
|
|||||
Total revenues
|
216.1
|
|
|
87.7
|
|
|
86.1
|
|
|
61.0
|
|
|
450.9
|
|
|||||
Segment Expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash-based compensation and benefits
|
96.7
|
|
|
35.8
|
|
|
46.6
|
|
|
23.2
|
|
|
202.3
|
|
|||||
Realized performance revenues related compensation
|
10.4
|
|
|
12.0
|
|
|
—
|
|
|
19.8
|
|
|
42.2
|
|
|||||
Total compensation and benefits
|
107.1
|
|
|
47.8
|
|
|
46.6
|
|
|
43.0
|
|
|
244.5
|
|
|||||
General, administrative, and other indirect expenses
|
34.1
|
|
|
16.8
|
|
|
16.5
|
|
|
8.3
|
|
|
75.7
|
|
|||||
Depreciation and amortization expense
|
4.9
|
|
|
1.9
|
|
|
2.1
|
|
|
1.4
|
|
|
10.3
|
|
|||||
Interest expense
|
7.9
|
|
|
3.1
|
|
|
6.7
|
|
|
1.9
|
|
|
19.6
|
|
|||||
Total expenses
|
154.0
|
|
|
69.6
|
|
|
71.9
|
|
|
54.6
|
|
|
350.1
|
|
|||||
Distributable Earnings
|
$
|
62.1
|
|
|
$
|
18.1
|
|
|
$
|
14.2
|
|
|
$
|
6.4
|
|
|
$
|
100.8
|
|
(-) Realized Net Performance Revenues
|
13.0
|
|
|
(7.1
|
)
|
|
—
|
|
|
1.1
|
|
|
7.0
|
|
|||||
(-) Realized Principal Investment Income (Loss)
|
(2.3
|
)
|
|
1.6
|
|
|
4.6
|
|
|
0.2
|
|
|
4.1
|
|
|||||
(+) Net Interest
|
6.7
|
|
|
2.6
|
|
|
2.9
|
|
|
1.4
|
|
|
13.6
|
|
|||||
(=) Fee Related Earnings
|
$
|
58.1
|
|
|
$
|
26.2
|
|
|
$
|
12.5
|
|
|
$
|
6.5
|
|
|
$
|
103.3
|
|
|
Three Months Ended March 31, 2020
|
||||||||||||||||
|
Total Reportable Segments
|
|
Consolidated Funds
|
|
Reconciling Items
|
|
|
|
Carlyle Consolidated
|
||||||||
|
|
|
|
|
|||||||||||||
|
(Dollars in millions)
|
||||||||||||||||
Revenues
|
$
|
581.1
|
|
|
$
|
53.0
|
|
|
$
|
(1,379.8
|
)
|
|
(a)
|
|
$
|
(745.7
|
)
|
Expenses
|
$
|
406.1
|
|
|
$
|
53.8
|
|
|
$
|
(529.7
|
)
|
|
(b)
|
|
$
|
(69.8
|
)
|
Other income (loss)
|
$
|
—
|
|
|
$
|
(113.1
|
)
|
|
$
|
—
|
|
|
(c)
|
|
$
|
(113.1
|
)
|
Distributable earnings
|
$
|
175.0
|
|
|
$
|
(113.9
|
)
|
|
$
|
(850.1
|
)
|
|
(d)
|
|
$
|
(789.0
|
)
|
Total assets
|
$
|
7,427.0
|
|
|
$
|
4,725.5
|
|
|
$
|
(67.9
|
)
|
|
(e)
|
|
$
|
12,084.6
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||
|
Total Reportable Segments
|
|
Consolidated Funds
|
|
Reconciling Items
|
|
|
|
Carlyle Consolidated
|
||||||||
|
|
|
|
|
|
||||||||||||
|
(Dollars in millions)
|
||||||||||||||||
Revenues
|
$
|
450.9
|
|
|
$
|
52.4
|
|
|
$
|
583.7
|
|
|
(a)
|
|
$
|
1,087.0
|
|
Expenses
|
$
|
350.1
|
|
|
$
|
43.7
|
|
|
$
|
208.7
|
|
|
(b)
|
|
$
|
602.5
|
|
Other income (loss)
|
$
|
—
|
|
|
$
|
(14.2
|
)
|
|
$
|
—
|
|
|
(c)
|
|
$
|
(14.2
|
)
|
Distributable earnings
|
$
|
100.8
|
|
|
$
|
(5.5
|
)
|
|
$
|
375.0
|
|
|
(d)
|
|
$
|
470.3
|
|
(a)
|
The Revenues adjustment principally represents unrealized performance revenues, unrealized principal investment income (including Fortitude Re), revenues earned from the Consolidated Funds which were eliminated in consolidation to arrive at the Company’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, and the inclusion of tax expenses associated with certain foreign performance revenues, as detailed below:
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Unrealized performance revenues
|
$
|
(1,109.0
|
)
|
|
$
|
301.8
|
|
Unrealized principal investment income (loss)
|
(264.7
|
)
|
|
238.6
|
|
||
Adjusted unrealized principal investment income (loss) from investment in Fortitude Re
|
(22.8
|
)
|
|
27.0
|
|
||
Adjustments related to expenses associated with investments in NGP Management and its affiliates
|
(3.9
|
)
|
|
(4.0
|
)
|
||
Non-Carlyle economic interests in acquired businesses and other adjustments to present certain costs on a net basis
|
(77.7
|
)
|
|
20.4
|
|
||
Elimination of revenues of Consolidated Funds
|
98.3
|
|
|
(0.1
|
)
|
||
|
$
|
(1,379.8
|
)
|
|
$
|
583.7
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Total Reportable Segments - Fund level fee revenues
|
$
|
388.3
|
|
|
$
|
391.6
|
|
Adjustments (1)
|
(32.4
|
)
|
|
(38.2
|
)
|
||
Carlyle Consolidated - Fund management fees
|
$
|
355.9
|
|
|
$
|
353.4
|
|
(b)
|
The Expenses adjustment represents the elimination of intercompany expenses of the Consolidated Funds payable to the Company, the inclusion of equity-based compensation, certain tax expenses associated with realized performance revenues related compensation, and unrealized 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, changes in the tax receivable agreement liability, and charges and credits associated with Carlyle corporate actions and non-recurring items, as detailed below:
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Unrealized performance revenues related compensation
|
$
|
(580.1
|
)
|
|
$
|
146.0
|
|
Equity-based compensation
|
31.7
|
|
|
39.4
|
|
||
Acquisition related charges and amortization of intangibles and impairment
|
3.0
|
|
|
12.0
|
|
||
Other non-operating expense
|
0.2
|
|
|
0.3
|
|
||
Tax expense associated with certain foreign performance revenues related compensation
|
11.2
|
|
|
(6.1
|
)
|
||
Non-Carlyle economic interests in acquired businesses and other adjustments to present certain costs on a net basis
|
8.0
|
|
|
20.9
|
|
||
Debt extinguishment costs
|
—
|
|
|
0.1
|
|
||
Corporate conversion costs, severance and other adjustments
|
4.5
|
|
|
1.7
|
|
||
Elimination of expenses of Consolidated Funds
|
(8.2
|
)
|
|
(5.6
|
)
|
||
|
$
|
(529.7
|
)
|
|
$
|
208.7
|
|
(c)
|
The Other Income (Loss) adjustment results from the Consolidated Funds which were eliminated in consolidation to arrive at the Company’s total Other Income (Loss).
|
(d)
|
The following table is a reconciliation of Income (Loss) Before Provision for Income Taxes to Distributable Earnings and to Fee Related Earnings:
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Income (loss) before provision for income taxes
|
$
|
(789.0
|
)
|
|
$
|
470.3
|
|
Adjustments:
|
|
|
|
||||
Net unrealized performance revenues
|
528.9
|
|
|
(155.8
|
)
|
||
Unrealized principal investment (income) loss
|
264.7
|
|
|
(238.6
|
)
|
||
Adjusted unrealized principal investment (income) loss from investment in Fortitude Re
|
22.8
|
|
|
(27.0
|
)
|
||
Equity-based compensation (1)
|
31.7
|
|
|
39.4
|
|
||
Acquisition related charges, including amortization of intangibles and impairment
|
3.0
|
|
|
12.0
|
|
||
Other non-operating expense
|
0.2
|
|
|
0.3
|
|
||
Tax expense associated with certain foreign performance revenues
|
11.2
|
|
|
(6.1
|
)
|
||
Net (income) loss attributable to non-controlling interests in consolidated entities
|
97.0
|
|
|
4.5
|
|
||
Debt extinguishment costs
|
—
|
|
|
0.1
|
|
||
Corporate conversion costs, severance and other adjustments
|
4.5
|
|
|
1.7
|
|
||
Distributable Earnings
|
$
|
175.0
|
|
|
$
|
100.8
|
|
Realized performance revenues, net of related compensation (2)
|
48.2
|
|
|
7.0
|
|
||
Realized principal investment income (2)
|
15.9
|
|
|
4.1
|
|
||
Net interest
|
17.9
|
|
|
13.6
|
|
||
Fee Related Earnings
|
$
|
128.8
|
|
|
$
|
103.3
|
|
(1)
|
Equity-based compensation for the three months ended March 31, 2020 and 2019 includes amounts that are presented in principal investment income and general, administrative and other expenses in our U.S. GAAP statement of operations.
|
|
Three Months Ended March 31, 2020
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments (3)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
|
$
|
(937.6
|
)
|
|
$
|
1,109.2
|
|
|
$
|
171.6
|
|
Performance revenues related compensation expense
|
(442.5
|
)
|
|
565.9
|
|
|
123.4
|
|
|||
Net performance revenues
|
$
|
(495.1
|
)
|
|
$
|
543.3
|
|
|
$
|
48.2
|
|
|
|
|
|
|
|
||||||
Principal investment income (loss)
|
$
|
(253.3
|
)
|
|
$
|
269.2
|
|
|
$
|
15.9
|
|
|
Three Months Ended March 31, 2019
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments (3)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
|
$
|
349.1
|
|
|
$
|
(299.9
|
)
|
|
$
|
49.2
|
|
Performance revenues related compensation expense
|
185.4
|
|
|
(143.2
|
)
|
|
42.2
|
|
|||
Net performance revenues
|
$
|
163.7
|
|
|
$
|
(156.7
|
)
|
|
$
|
7.0
|
|
|
|
|
|
|
|
||||||
Principal investment income (loss)
|
$
|
301.8
|
|
|
$
|
(297.7
|
)
|
|
$
|
4.1
|
|
|
As of March 31, 2020
|
||||||||||||||
|
Consolidated
Operating Entities |
|
Consolidated
Funds |
|
Eliminations
|
|
Consolidated
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
1,007.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,007.9
|
|
Cash and cash equivalents held at Consolidated Funds
|
—
|
|
|
170.9
|
|
|
—
|
|
|
170.9
|
|
||||
Restricted cash
|
0.6
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||
Investments, including performance allocations of $2,752.1 million
|
5,454.2
|
|
|
—
|
|
|
(63.1
|
)
|
|
5,391.1
|
|
||||
Investments of Consolidated Funds
|
—
|
|
|
4,465.3
|
|
|
—
|
|
|
4,465.3
|
|
||||
Due from affiliates and other receivables, net
|
232.8
|
|
|
—
|
|
|
(4.8
|
)
|
|
228.0
|
|
||||
Due from affiliates and other receivables of Consolidated Funds, net
|
—
|
|
|
88.8
|
|
|
—
|
|
|
88.8
|
|
||||
Fixed assets, net
|
120.6
|
|
|
—
|
|
|
—
|
|
|
120.6
|
|
||||
Lease right-of-use assets, net
|
194.2
|
|
|
—
|
|
|
—
|
|
|
194.2
|
|
||||
Deposits and other
|
53.9
|
|
|
0.5
|
|
|
—
|
|
|
54.4
|
|
||||
Intangible assets, net
|
58.3
|
|
|
—
|
|
|
—
|
|
|
58.3
|
|
||||
Deferred tax assets
|
304.5
|
|
|
—
|
|
|
—
|
|
|
304.5
|
|
||||
Total assets
|
$
|
7,427.0
|
|
|
$
|
4,725.5
|
|
|
$
|
(67.9
|
)
|
|
$
|
12,084.6
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
||||||||
Debt obligations
|
$
|
2,188.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,188.3
|
|
Loans payable of Consolidated Funds
|
—
|
|
|
4,196.3
|
|
|
—
|
|
|
4,196.3
|
|
||||
Accounts payable, accrued expenses and other liabilities
|
301.6
|
|
|
—
|
|
|
—
|
|
|
301.6
|
|
||||
Accrued compensation and benefits
|
1,773.3
|
|
|
—
|
|
|
—
|
|
|
1,773.3
|
|
||||
Due to affiliates
|
456.1
|
|
|
—
|
|
|
—
|
|
|
456.1
|
|
||||
Deferred revenue
|
296.3
|
|
|
—
|
|
|
—
|
|
|
296.3
|
|
||||
Deferred tax liabilities
|
36.4
|
|
|
—
|
|
|
—
|
|
|
36.4
|
|
||||
Other liabilities of Consolidated Funds
|
—
|
|
|
471.0
|
|
|
—
|
|
|
471.0
|
|
||||
Lease liabilities
|
273.8
|
|
|
—
|
|
|
—
|
|
|
273.8
|
|
||||
Accrued giveback obligations
|
22.4
|
|
|
—
|
|
|
—
|
|
|
22.4
|
|
||||
Total liabilities
|
5,348.2
|
|
|
4,667.3
|
|
|
—
|
|
|
10,015.5
|
|
||||
Common stock
|
3.5
|
|
|
—
|
|
|
—
|
|
|
3.5
|
|
||||
Additional paid-in capital
|
2,569.0
|
|
|
69.5
|
|
|
(69.5
|
)
|
|
2,569.0
|
|
||||
Retained earnings (deficit)
|
(612.0
|
)
|
|
—
|
|
|
—
|
|
|
(612.0
|
)
|
||||
Accumulated other comprehensive loss
|
(93.2
|
)
|
|
(3.5
|
)
|
|
1.6
|
|
|
(95.1
|
)
|
||||
Non-controlling interests in consolidated entities
|
211.5
|
|
|
(7.8
|
)
|
|
—
|
|
|
203.7
|
|
||||
Total equity
|
2,078.8
|
|
|
58.2
|
|
|
(67.9
|
)
|
|
2,069.1
|
|
||||
Total liabilities and equity
|
$
|
7,427.0
|
|
|
$
|
4,725.5
|
|
|
$
|
(67.9
|
)
|
|
$
|
12,084.6
|
|
|
As of December 31, 2019
|
||||||||||||||
|
Consolidated
Operating Entities |
|
Consolidated
Funds |
|
Eliminations
|
|
Consolidated
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
793.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
793.4
|
|
Cash and cash equivalents held at Consolidated Funds
|
—
|
|
|
122.4
|
|
|
—
|
|
|
122.4
|
|
||||
Restricted cash
|
34.6
|
|
|
—
|
|
|
—
|
|
|
34.6
|
|
||||
Investments, including performance allocations of $3,855.6 million
|
6,982.7
|
|
|
—
|
|
|
(178.3
|
)
|
|
6,804.4
|
|
||||
Investments of Consolidated Funds
|
—
|
|
|
5,007.3
|
|
|
—
|
|
|
5,007.3
|
|
||||
Due from affiliates and other receivables, net
|
279.0
|
|
|
—
|
|
|
(5.1
|
)
|
|
273.9
|
|
||||
Due from affiliates and other receivables of Consolidated Funds, net
|
—
|
|
|
74.4
|
|
|
—
|
|
|
74.4
|
|
||||
Fixed assets, net
|
108.2
|
|
|
—
|
|
|
—
|
|
|
108.2
|
|
||||
Lease right-of-use assets, net
|
203.8
|
|
|
—
|
|
|
—
|
|
|
203.8
|
|
||||
Deposits and other
|
53.8
|
|
|
0.2
|
|
|
—
|
|
|
54.0
|
|
||||
Intangible assets, net
|
62.3
|
|
|
—
|
|
|
—
|
|
|
62.3
|
|
||||
Deferred tax assets
|
270.1
|
|
|
—
|
|
|
—
|
|
|
270.1
|
|
||||
Total assets
|
$
|
8,787.9
|
|
|
$
|
5,204.3
|
|
|
$
|
(183.4
|
)
|
|
$
|
13,808.8
|
|
Liabilities and partners’ capital
|
|
|
|
|
|
|
|
||||||||
Loans payable
|
$
|
1,976.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,976.3
|
|
Loans payable of Consolidated Funds
|
—
|
|
|
4,706.7
|
|
|
—
|
|
|
4,706.7
|
|
||||
Accounts payable, accrued expenses and other liabilities
|
354.9
|
|
|
—
|
|
|
—
|
|
|
354.9
|
|
||||
Accrued compensation and benefits
|
2,496.5
|
|
|
—
|
|
|
—
|
|
|
2,496.5
|
|
||||
Due to affiliates
|
542.1
|
|
|
—
|
|
|
—
|
|
|
542.1
|
|
||||
Deferred revenue
|
71.0
|
|
|
—
|
|
|
—
|
|
|
71.0
|
|
||||
Deferred tax liabilities
|
65.2
|
|
|
—
|
|
|
—
|
|
|
65.2
|
|
||||
Other liabilities of Consolidated Funds
|
—
|
|
|
316.1
|
|
|
—
|
|
|
316.1
|
|
||||
Lease liabilities
|
288.2
|
|
|
—
|
|
|
—
|
|
|
288.2
|
|
||||
Accrued giveback obligations
|
22.2
|
|
|
—
|
|
|
—
|
|
|
22.2
|
|
||||
Total liabilities
|
5,816.4
|
|
|
5,022.8
|
|
|
—
|
|
|
10,839.2
|
|
||||
Partners’ capital
|
703.8
|
|
|
61.7
|
|
|
(61.7
|
)
|
|
703.8
|
|
||||
Accumulated other comprehensive loss
|
(84.5
|
)
|
|
(0.1
|
)
|
|
(0.6
|
)
|
|
(85.2
|
)
|
||||
Non-controlling interests in consolidated entities
|
333.4
|
|
|
0.1
|
|
|
—
|
|
|
333.5
|
|
||||
Non-controlling interests in Carlyle Holdings
|
2,018.8
|
|
|
119.8
|
|
|
(121.1
|
)
|
|
2,017.5
|
|
||||
Total partners’ capital
|
2,971.5
|
|
|
181.5
|
|
|
(183.4
|
)
|
|
2,969.6
|
|
||||
Total liabilities and partners’ capital
|
$
|
8,787.9
|
|
|
$
|
5,204.3
|
|
|
$
|
(183.4
|
)
|
|
$
|
13,808.8
|
|
|
Three Months Ended March 31, 2020
|
||||||||||||||
|
Consolidated
Operating Entities |
|
Consolidated
Funds |
|
Eliminations
|
|
Consolidated
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
361.1
|
|
|
$
|
—
|
|
|
$
|
(5.2
|
)
|
|
$
|
355.9
|
|
Incentive fees
|
8.9
|
|
|
—
|
|
|
—
|
|
|
8.9
|
|
||||
Investment income (loss)
|
|
|
|
|
|
|
|
||||||||
Performance allocations
|
(937.6
|
)
|
|
—
|
|
|
—
|
|
|
(937.6
|
)
|
||||
Principal investment income (loss)
|
(363.2
|
)
|
|
—
|
|
|
109.9
|
|
|
(253.3
|
)
|
||||
Total investment income (loss)
|
(1,300.8
|
)
|
|
—
|
|
|
109.9
|
|
|
(1,190.9
|
)
|
||||
Interest and other income
|
33.8
|
|
|
—
|
|
|
(6.4
|
)
|
|
27.4
|
|
||||
Interest and other income of Consolidated Funds
|
—
|
|
|
53.0
|
|
|
—
|
|
|
53.0
|
|
||||
Total revenues
|
(897.0
|
)
|
|
53.0
|
|
|
98.3
|
|
|
(745.7
|
)
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
204.3
|
|
|
—
|
|
|
—
|
|
|
204.3
|
|
||||
Equity-based compensation
|
29.1
|
|
|
—
|
|
|
—
|
|
|
29.1
|
|
||||
Performance allocations and incentive fee related compensation
|
(442.5
|
)
|
|
—
|
|
|
—
|
|
|
(442.5
|
)
|
||||
Total compensation and benefits
|
(209.1
|
)
|
|
—
|
|
|
—
|
|
|
(209.1
|
)
|
||||
General, administrative and other expenses
|
69.6
|
|
|
—
|
|
|
—
|
|
|
69.6
|
|
||||
Interest
|
23.9
|
|
|
—
|
|
|
—
|
|
|
23.9
|
|
||||
Interest and other expenses of Consolidated Funds
|
—
|
|
|
53.8
|
|
|
(8.2
|
)
|
|
45.6
|
|
||||
Other non-operating expenses
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
||||
Total expenses
|
(115.4
|
)
|
|
53.8
|
|
|
(8.2
|
)
|
|
(69.8
|
)
|
||||
Other loss
|
|
|
|
|
|
|
|
||||||||
Net investment losses of Consolidated Funds
|
—
|
|
|
(113.1
|
)
|
|
—
|
|
|
(113.1
|
)
|
||||
Loss before provision for income taxes
|
(781.6
|
)
|
|
(113.9
|
)
|
|
106.5
|
|
|
(789.0
|
)
|
||||
Benefit for income taxes
|
(80.0
|
)
|
|
—
|
|
|
—
|
|
|
(80.0
|
)
|
||||
Net loss
|
(701.6
|
)
|
|
(113.9
|
)
|
|
106.5
|
|
|
(709.0
|
)
|
||||
Net loss attributable to non-controlling interests in consolidated entities
|
(89.6
|
)
|
|
—
|
|
|
(7.4
|
)
|
|
(97.0
|
)
|
||||
Net loss attributable to The Carlyle Group Inc.
|
$
|
(612.0
|
)
|
|
$
|
(113.9
|
)
|
|
$
|
113.9
|
|
|
$
|
(612.0
|
)
|
|
Three months ended March 31, 2019
|
||||||||||||||
|
Consolidated
Operating Entities |
|
Consolidated
Funds |
|
Eliminations
|
|
Consolidated
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Fund management fees
|
$
|
358.7
|
|
|
$
|
—
|
|
|
$
|
(5.3
|
)
|
|
$
|
353.4
|
|
Incentive fees
|
8.1
|
|
|
—
|
|
|
—
|
|
|
8.1
|
|
||||
Investment income
|
|
|
|
|
|
|
|
||||||||
Performance allocations
|
349.1
|
|
|
—
|
|
|
—
|
|
|
349.1
|
|
||||
Principal investment income
|
289.6
|
|
|
—
|
|
|
12.2
|
|
|
301.8
|
|
||||
Total investment income
|
638.7
|
|
|
—
|
|
|
12.2
|
|
|
650.9
|
|
||||
Interest and other income
|
29.2
|
|
|
—
|
|
|
(7.0
|
)
|
|
22.2
|
|
||||
Interest and other income of Consolidated Funds
|
—
|
|
|
52.4
|
|
|
—
|
|
|
52.4
|
|
||||
Total revenues
|
1,034.7
|
|
|
52.4
|
|
|
(0.1
|
)
|
|
1,087.0
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
|
|
|
|
|
|
||||||||
Cash-based compensation and benefits
|
210.5
|
|
|
—
|
|
|
—
|
|
|
210.5
|
|
||||
Equity-based compensation
|
36.0
|
|
|
—
|
|
|
—
|
|
|
36.0
|
|
||||
Performance allocations and incentive fee related compensation
|
185.4
|
|
|
—
|
|
|
—
|
|
|
185.4
|
|
||||
Total compensation and benefits
|
431.9
|
|
|
—
|
|
|
—
|
|
|
431.9
|
|
||||
General, administrative and other expenses
|
112.5
|
|
|
—
|
|
|
—
|
|
|
112.5
|
|
||||
Interest
|
19.7
|
|
|
—
|
|
|
—
|
|
|
19.7
|
|
||||
Interest and other expenses of Consolidated Funds
|
—
|
|
|
43.7
|
|
|
(5.6
|
)
|
|
38.1
|
|
||||
Other non-operating expenses
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
||||
Total expenses
|
564.4
|
|
|
43.7
|
|
|
(5.6
|
)
|
|
602.5
|
|
||||
Other loss
|
|
|
|
|
|
|
|
||||||||
Net investment losses of Consolidated Funds
|
—
|
|
|
(14.2
|
)
|
|
—
|
|
|
(14.2
|
)
|
||||
Income (loss) before provision for income taxes
|
470.3
|
|
|
(5.5
|
)
|
|
5.5
|
|
|
470.3
|
|
||||
Provision for income taxes
|
24.0
|
|
|
—
|
|
|
—
|
|
|
24.0
|
|
||||
Net income (loss)
|
446.3
|
|
|
(5.5
|
)
|
|
5.5
|
|
|
446.3
|
|
||||
Net loss attributable to non-controlling interests in consolidated entities
|
(4.5
|
)
|
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
||||
Net income (loss) attributable to Carlyle Holdings
|
450.8
|
|
|
(5.5
|
)
|
|
5.5
|
|
|
450.8
|
|
||||
Net income attributable to non-controlling interests in Carlyle Holdings
|
307.9
|
|
|
—
|
|
|
—
|
|
|
307.9
|
|
||||
Net income (loss) attributable to The Carlyle Group Inc.
|
142.9
|
|
|
(5.5
|
)
|
|
5.5
|
|
|
142.9
|
|
||||
Net income attributable to Series A Preferred Unitholders
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
||||
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders
|
$
|
137.0
|
|
|
$
|
(5.5
|
)
|
|
$
|
5.5
|
|
|
$
|
137.0
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Cash flows from operating activities
|
|
|
|
||||
Net income (loss)
|
$
|
(701.6
|
)
|
|
$
|
446.3
|
|
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
12.6
|
|
|
14.8
|
|
||
Equity-based compensation
|
29.1
|
|
|
36.0
|
|
||
Non-cash performance allocations and incentive fees
|
550.5
|
|
|
(167.8
|
)
|
||
Non-cash principal investment (income) loss
|
363.6
|
|
|
(286.3
|
)
|
||
Other non-cash amounts
|
(9.5
|
)
|
|
11.1
|
|
||
Purchases of investments
|
(53.6
|
)
|
|
(72.7
|
)
|
||
Proceeds from the sale of investments
|
110.4
|
|
|
155.1
|
|
||
Change in deferred taxes, net
|
(101.0
|
)
|
|
14.7
|
|
||
Change in due from affiliates and other receivables
|
11.4
|
|
|
60.6
|
|
||
Change in deposits and other
|
(2.1
|
)
|
|
(8.4
|
)
|
||
Change in accounts payable, accrued expenses and other liabilities
|
(54.0
|
)
|
|
(68.9
|
)
|
||
Change in accrued compensation and benefits
|
(196.6
|
)
|
|
(137.6
|
)
|
||
Change in due to affiliates
|
(35.2
|
)
|
|
(2.2
|
)
|
||
Change in lease right-of-use asset and lease liability
|
(3.3
|
)
|
|
(1.1
|
)
|
||
Change in deferred revenue
|
225.9
|
|
|
197.7
|
|
||
Net cash provided by operating activities
|
146.6
|
|
|
191.3
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchases of fixed assets, net
|
(13.2
|
)
|
|
(7.1
|
)
|
||
Net cash used in investing activities
|
(13.2
|
)
|
|
(7.1
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Borrowings under credit facilities
|
251.0
|
|
|
—
|
|
||
Repayments under credit facilities
|
(35.8
|
)
|
|
—
|
|
||
Repayment of term loan
|
—
|
|
|
(25.0
|
)
|
||
Payments on debt obligations
|
(0.3
|
)
|
|
(6.8
|
)
|
||
Proceeds from debt obligations
|
—
|
|
|
20.5
|
|
||
Distributions to common unitholders
|
(87.4
|
)
|
|
(47.4
|
)
|
||
Distributions to preferred unitholders
|
—
|
|
|
(5.9
|
)
|
||
Distributions to non-controlling interest holders in Carlyle Holdings
|
—
|
|
|
(99.4
|
)
|
||
Contributions from non-controlling interest holders
|
4.2
|
|
|
2.2
|
|
||
Distributions to non-controlling interest holders
|
(23.3
|
)
|
|
(9.8
|
)
|
||
Payment of deferred consideration for Carlyle Holdings units
|
(68.8
|
)
|
|
—
|
|
||
Common shares repurchased
|
(26.4
|
)
|
|
(10.4
|
)
|
||
Change in due to/from affiliates financing activities
|
51.1
|
|
|
87.3
|
|
||
Net cash provided by (used in) financing activities
|
64.3
|
|
|
(94.7
|
)
|
||
Effect of foreign exchange rate changes
|
(17.2
|
)
|
|
0.3
|
|
||
Increase in cash, cash equivalents and restricted cash
|
180.5
|
|
|
89.8
|
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
828.0
|
|
|
638.3
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
1,008.5
|
|
|
$
|
728.1
|
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents and restricted cash, end of period:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,007.9
|
|
|
$
|
723.0
|
|
Restricted cash
|
0.6
|
|
|
5.1
|
|
||
Total cash, cash equivalents and restricted cash, end of period
|
$
|
1,008.5
|
|
|
$
|
728.1
|
|
|
|
|
|
||||
Cash and cash equivalents held at Consolidated Funds
|
$
|
170.9
|
|
|
$
|
213.9
|
|
•
|
Corporate Private Equity — Our Corporate Private Equity segment advises our 24 buyout and 10 middle market and growth capital funds, which seek a wide variety of investments of different sizes and growth potentials. As of March 31, 2020, our Corporate Private Equity segment had $80 billion in AUM and $61 billion in Fee-earning AUM.
|
•
|
Real Assets — Our Real Assets segment advises our ten U.S. and internationally focused real estate funds, our five infrastructure funds, our two international energy funds, as well as our three Legacy Energy funds. The segment also includes three NGP Predecessor Funds and four NGP Carry Funds advised by NGP. As of March 31, 2020, our Real Assets segment had $40 billion in AUM and $31 billion in Fee-earning AUM.
|
•
|
Global Credit — Our Global Credit segment advises a group of 66 funds that pursue investment strategies including loans and structured credit, direct lending, opportunistic credit, energy credit, distressed credit, and aircraft financing and servicing. As of March 31, 2020, our Global Credit segment had $49 billion in AUM and $38 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 265 fund vehicles. As of March 31, 2020, our Investment Solutions segment had $48 billion in AUM and $28 billion in Fee-earning AUM.
|
(1)
|
Amounts represent gross assets plus any available capital as of March 31, 2020.
|
(2)
|
Amounts represent Total AUM as of March 31, 2020.
|
(3)
|
Includes NGP M&R, NGP ETP II, and NGP IX, on which we are not entitled to a share of carried interest.
|
(4)
|
Real Assets also includes the Legacy Energy funds, which we jointly advise with Riverstone Holdings L.L.C. The impact of these funds is no longer significant to our results of operations.
|
|
Inception through March 31, 2020
|
||||||
|
Total Giveback
|
|
Giveback Attributable to Carlyle
|
||||
|
(Dollars in millions)
|
||||||
Various Legacy Energy Funds
|
$
|
155.2
|
|
|
$
|
55.0
|
|
All other Carlyle Funds
|
56.9
|
|
|
0.6
|
|
||
Aggregate Giveback since Inception
|
$
|
212.1
|
|
|
$
|
55.6
|
|
|
As of March 31, 2020
|
||||||||||||||||||
|
Corporate
Private Equity |
|
Real
Assets
|
|
Global
Credit
|
|
Investment Solutions
|
|
Total
|
||||||||||
Consolidated Results
|
(Dollars in millions)
|
||||||||||||||||||
Level I
|
$
|
640
|
|
|
$
|
1,861
|
|
|
$
|
259
|
|
|
$
|
1,574
|
|
|
$
|
4,334
|
|
Level II
|
1,952
|
|
|
(12
|
)
|
|
1,778
|
|
|
—
|
|
|
3,718
|
|
|||||
Level III
|
45,197
|
|
|
22,293
|
|
|
38,768
|
|
|
29,095
|
|
|
135,353
|
|
|||||
Fair Value of Investments
|
47,789
|
|
|
24,142
|
|
|
40,805
|
|
|
30,669
|
|
|
143,405
|
|
|||||
Available Capital
|
32,594
|
|
|
15,652
|
|
|
7,997
|
|
|
17,285
|
|
|
73,528
|
|
|||||
Total AUM
|
$
|
80,383
|
|
|
$
|
39,794
|
|
|
$
|
48,802
|
|
|
$
|
47,954
|
|
|
$
|
216,933
|
|
(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 CLOs and other securitization vehicles, as defined in the fund indentures (typically exclusive of equities and defaulted positions) as of the quarterly cut-off date;
|
(d)
|
the external investor portion of the net asset value of our open-ended funds (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 March 31,
|
||||||
|
2020
|
|
2019
|
||||
Consolidated Results
|
(Dollars in millions)
|
||||||
Components of Fee-earning AUM
|
|
|
|
||||
Fee-earning AUM based on capital commitments (1)
|
$
|
72,175
|
|
|
$
|
71,022
|
|
Fee-earning AUM based on invested capital (2)
|
39,118
|
|
|
42,652
|
|
||
Fee-earning AUM based on collateral balances, at par (3)
|
25,304
|
|
|
23,713
|
|
||
Fee-earning AUM based on net asset value (4)
|
4,261
|
|
|
3,555
|
|
||
Fee-earning AUM based on lower of cost or fair value and other (5)
|
17,388
|
|
|
19,081
|
|
||
Balance, End of Period (6) (7)
|
$
|
158,246
|
|
|
$
|
160,023
|
|
(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 our hedge funds, mutual fund and fund of hedge funds vehicles, as well as certain other carry funds.
|
(5)
|
Includes funds with fees based on gross asset value.
|
(6)
|
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 advisors 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 committee of Energy III, but the investment period for this fund has expired and the remaining investments in such fund are being disposed of in the ordinary course of business. As of March 31, 2020, the Legacy Energy Funds had, in the aggregate, approximately $1.8 billion in AUM and $1.5 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 $12.5 billion of pending Fee-earning AUM for which fees have not yet been activated.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Consolidated Results
|
(Dollars in millions)
|
||||||
Fee-earning AUM Rollforward
|
|
|
|
||||
Balance, Beginning of Period
|
$
|
161,057
|
|
|
$
|
159,552
|
|
Inflows (1)
|
2,897
|
|
|
3,231
|
|
||
Outflows (including realizations) (2)
|
(4,656
|
)
|
|
(2,268
|
)
|
||
Market Activity & Other (3)
|
29
|
|
|
216
|
|
||
Foreign Exchange (4)
|
(1,081
|
)
|
|
(708
|
)
|
||
Balance, End of Period
|
$
|
158,246
|
|
|
$
|
160,023
|
|
(1)
|
Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based on commitments were activated during the period, the fee-earning commitments invested in vehicles for which management fees are based on invested capital, the fee-earning collateral balance of new CLO issuances, as well as gross subscriptions in our vehicles for which management fees are based on net asset value. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which are referenced as Pending Fee-earning AUM.
|
(2)
|
Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has expired during the period, reductions for funds that are no longer calling for fees, gross
|
(3)
|
Market Activity & Other 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, as well as activity of funds with fees based on gross asset value.
|
(4)
|
Foreign Exchange 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 open-ended 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 March 31, 2020
|
||
Consolidated Results
|
(Dollars in millions)
|
||
Total AUM Rollforward
|
|
||
Balance, Beginning of Period
|
$
|
224,442
|
|
Inflows (1)
|
7,133
|
|
|
Outflows (including realizations) (2)
|
(3,924
|
)
|
|
Market Activity & Other (3)
|
(9,140
|
)
|
|
Foreign Exchange (4)
|
(1,578
|
)
|
|
Balance, End of Period
|
$
|
216,933
|
|
(1)
|
Inflows 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. New CLO warehouse assets are recognized as an inflow to AUM, while corresponding fundraising will not be recognized until CLO issuance.
|
(2)
|
Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, separately managed accounts and the NGP Predecessor Funds, gross redemptions in our open-ended funds, runoff of CLO collateral balances and the expiration of available capital.
|
(3)
|
Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds and related co-investment vehicles, the NGP Predecessor Funds and separately managed accounts, as well as the net impact of fees, expenses and non-investment income, change in gross asset value for our business development companies and other changes in AUM.
|
(4)
|
Foreign Exchange 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.
|
(1)
|
Reflects carry funds only. 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)
|
In the Corporate Private Equity, Real Assets, and Global Credit carry funds, public investments made up 8% of remaining fair value at March 31, 2020 and 8% of remaining fair value at March 31, 2019. For Q1 2020, public investments depreciated 2% while private investments depreciated 11%, compared to 16% public appreciation and 2% private appreciation for Q1 2019. 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)
|
Carry funds comprise approximately 25% of the AUM in Global Credit at March 31, 2020.
|
(5)
|
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 carry fund appreciation and the MSCI All Country World Index are included for informational purposes only.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions, except share and per share data)
|
||||||
Revenues
|
|
|
|
||||
Fund management fees
|
$
|
355.9
|
|
|
$
|
353.4
|
|
Incentive fees
|
8.9
|
|
|
8.1
|
|
||
Investment income (loss)
|
|
|
|
||||
Performance allocations
|
(937.6
|
)
|
|
349.1
|
|
||
Principal investment income (loss)
|
(253.3
|
)
|
|
301.8
|
|
||
Total investment income (loss)
|
(1,190.9
|
)
|
|
650.9
|
|
||
Interest and other income
|
27.4
|
|
|
22.2
|
|
||
Interest and other income of Consolidated Funds
|
53.0
|
|
|
52.4
|
|
||
Total revenues
|
(745.7
|
)
|
|
1,087.0
|
|
||
Expenses
|
|
|
|
||||
Compensation and benefits
|
|
|
|
||||
Cash-based compensation and benefits
|
204.3
|
|
|
210.5
|
|
||
Equity-based compensation
|
29.1
|
|
|
36.0
|
|
||
Performance allocations and incentive fee related compensation
|
(442.5
|
)
|
|
185.4
|
|
||
Total compensation and benefits
|
(209.1
|
)
|
|
431.9
|
|
||
General, administrative and other expenses
|
69.6
|
|
|
112.5
|
|
||
Interest
|
23.9
|
|
|
19.7
|
|
||
Interest and other expenses of Consolidated Funds
|
45.6
|
|
|
38.1
|
|
||
Other non-operating expenses
|
0.2
|
|
|
0.3
|
|
||
Total expenses
|
(69.8
|
)
|
|
602.5
|
|
||
Other income (loss)
|
|
|
|
||||
Net investment losses of Consolidated Funds
|
(113.1
|
)
|
|
(14.2
|
)
|
||
Income (Loss) before provision for income taxes
|
(789.0
|
)
|
|
470.3
|
|
||
Provision (Benefit) for income taxes
|
(80.0
|
)
|
|
24.0
|
|
||
Net income (loss)
|
(709.0
|
)
|
|
446.3
|
|
||
Net loss attributable to non-controlling interests in consolidated entities
|
(97.0
|
)
|
|
(4.5
|
)
|
||
Net income (loss) attributable to Carlyle Holdings
|
(612.0
|
)
|
|
450.8
|
|
||
Net income attributable to non-controlling interests in Carlyle Holdings
|
—
|
|
|
307.9
|
|
||
Net income (loss) attributable to The Carlyle Group Inc.
|
(612.0
|
)
|
|
142.9
|
|
||
Net income attributable to Series A Preferred Unitholders
|
—
|
|
|
5.9
|
|
||
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders
|
$
|
(612.0
|
)
|
|
$
|
137.0
|
|
|
|
|
|
||||
Net income (loss) attributable to The Carlyle Group Inc. per common share
|
|
|
|
||||
Basic
|
$
|
(1.76
|
)
|
|
$
|
1.25
|
|
Diluted
|
$
|
(1.76
|
)
|
|
$
|
1.18
|
|
Weighted-average common shares
|
|
|
|
||||
Basic
|
348,239,759
|
|
|
109,210,460
|
|
||
Diluted
|
348,239,759
|
|
|
115,818,538
|
|
|
Three Months Ended
March 31, |
||
|
2020 v. 2019
|
||
|
(Dollars in millions)
|
||
Total Revenues, March 31, 2019
|
$
|
1,087.0
|
|
Increases (Decreases):
|
|
||
Increase in fund management fees
|
2.5
|
|
|
Increase in incentive fees
|
0.8
|
|
|
Decrease in investment income, including performance allocations
|
(1,841.8
|
)
|
|
Increase in interest and other income
|
5.2
|
|
|
Increase in interest and other income of Consolidated Funds
|
0.6
|
|
|
Total decrease
|
(1,832.7
|
)
|
|
Total Revenues, March 31, 2020
|
$
|
(745.7
|
)
|
|
Three Months Ended
March 31, |
||
|
2020 v. 2019
|
||
|
(Dollars in millions)
|
||
Higher management fees from the commencement of the
investment period for certain newly raised funds |
$
|
26.0
|
|
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 (1) |
(23.4
|
)
|
|
Increase in catch-up management fees from
subsequent closes of funds that are in the fundraising period |
3.1
|
|
|
Lower transaction and portfolio advisory fees
|
(4.4
|
)
|
|
All other changes
|
1.2
|
|
|
Total increase in fund management fees
|
$
|
2.5
|
|
|
Three Months Ended
March 31, |
||
|
2020 v. 2019
|
||
|
(Dollars in millions)
|
||
Decrease in performance allocations, excluding NGP
|
$
|
(1,286.7
|
)
|
Decrease in investment income from NGP, which includes performance allocations from the investments in NGP
|
(27.7
|
)
|
|
Decrease in investment income from our buyout and growth funds
|
(45.1
|
)
|
|
Increase in losses on foreign currency hedges
|
(3.9
|
)
|
|
Decrease in investment income from our real assets funds, excluding NGP
|
(16.5
|
)
|
|
Decrease in investment income from our distressed debt funds, energy mezzanine funds and opportunistic credit funds
|
(6.1
|
)
|
|
Decrease in investment income from our direct lending funds, interval funds and CCS
|
(9.1
|
)
|
|
Decrease in investment income from Aviation Partners
|
(2.2
|
)
|
|
Decrease in investment income from CLOs
|
(71.2
|
)
|
|
Decrease in investment income from Fortitude Re
|
(368.2
|
)
|
|
All other changes
|
(5.1
|
)
|
|
Total decrease in investment income
|
$
|
(1,841.8
|
)
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Corporate Private Equity
|
$
|
(604.9
|
)
|
|
$
|
132.8
|
|
Real Assets
|
(204.4
|
)
|
|
109.4
|
|
||
Global Credit
|
(63.0
|
)
|
|
29.6
|
|
||
Investment Solutions (1)
|
(65.3
|
)
|
|
77.3
|
|
||
Total performance allocations
|
$
|
(937.6
|
)
|
|
$
|
349.1
|
|
|
|
|
|
||||
Total carry fund appreciation (depreciation)
|
(7
|
)%
|
|
3
|
%
|
|
Three Months Ended
March 31, |
||
|
2020 v. 2019
|
||
|
(Dollars in millions)
|
||
Total Expenses, March 31, 2019
|
$
|
602.5
|
|
Increases (Decreases):
|
|
||
Decrease in total compensation and benefits
|
(641.0
|
)
|
|
Decrease in general, administrative and other expenses
|
(42.9
|
)
|
|
Increase in interest and other expenses of Consolidated Funds
|
7.5
|
|
|
All other changes
|
4.1
|
|
|
Total decrease
|
(672.3
|
)
|
|
Total Expenses, March 31, 2020
|
$
|
(69.8
|
)
|
|
Three Months Ended
March 31, |
||
|
2020 v. 2019
|
||
|
(Dollars in millions)
|
||
Decrease in cash-based compensation and benefits
|
$
|
(6.2
|
)
|
Decrease in equity-based compensation
|
(6.9
|
)
|
|
Decrease in performance allocations and incentive fee related compensation
|
(627.9
|
)
|
|
Decrease in total compensation and benefits
|
$
|
(641.0
|
)
|
|
Three Months Ended
March 31, |
||
|
2020 v. 2019
|
||
|
(Dollars in millions)
|
||
Increase in headcount and bonuses
|
$
|
2.1
|
|
Contingent earnout associated with Carlyle Aviation Partners acquisition
|
(8.3
|
)
|
|
Total decrease in cash-based compensation and benefits
|
$
|
(6.2
|
)
|
|
Three Months Ended
March 31, |
||
|
2020 v. 2019
|
||
|
(Dollars in millions)
|
||
CCC litigation cost recovery (1)
|
$
|
(29.9
|
)
|
Lower depreciation and intangible asset amortization
|
(2.2
|
)
|
|
Higher professional fees, including corporate conversion costs
|
10.1
|
|
|
Higher external fundraising costs
|
0.9
|
|
|
Foreign exchange and other changes
|
(21.8
|
)
|
|
Total decrease in general, administrative and other expenses
|
$
|
(42.9
|
)
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Realized losses
|
$
|
(0.5
|
)
|
|
$
|
(8.0
|
)
|
Net change in unrealized gains (losses)
|
(932.2
|
)
|
|
9.1
|
|
||
Total gains (losses)
|
(932.7
|
)
|
|
1.1
|
|
||
Gains (Losses) from liabilities of CLOs
|
819.6
|
|
|
(15.3
|
)
|
||
Total net investment losses of Consolidated Funds
|
$
|
(113.1
|
)
|
|
$
|
(14.2
|
)
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Total Segment Revenues
|
$
|
581.1
|
|
|
$
|
450.9
|
|
Total Segment Expenses
|
406.1
|
|
|
350.1
|
|
||
Distributable Earnings
|
$
|
175.0
|
|
|
$
|
100.8
|
|
(-) Realized Net Performance Revenues
|
48.2
|
|
|
7.0
|
|
||
(-) Realized Principal Investment Income
|
15.9
|
|
|
4.1
|
|
||
(+) Net Interest
|
17.9
|
|
|
13.6
|
|
||
(=) Fee Related Earnings
|
$
|
128.8
|
|
|
$
|
103.3
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Segment Revenues
|
|
|
|
||||
Fund level fee revenues
|
|
|
|
||||
Fund management fees
|
$
|
381.5
|
|
|
$
|
381.6
|
|
Portfolio advisory and transaction fees, net and other
|
6.8
|
|
|
10.0
|
|
||
Total fund level fee revenues
|
388.3
|
|
|
391.6
|
|
||
Realized performance revenues
|
171.6
|
|
|
49.2
|
|
||
Realized principal investment income
|
15.9
|
|
|
4.1
|
|
||
Interest income
|
5.3
|
|
|
6.0
|
|
||
Total Segment Revenues
|
$
|
581.1
|
|
|
$
|
450.9
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Segment Expenses
|
|
|
|
||||
Compensation and benefits
|
|
|
|
||||
Cash-based compensation and benefits
|
$
|
203.8
|
|
|
$
|
202.3
|
|
Realized performance revenue related compensation
|
123.4
|
|
|
42.2
|
|
||
Total compensation and benefits
|
327.2
|
|
|
244.5
|
|
||
General, administrative, and other indirect expenses
|
48.3
|
|
|
75.7
|
|
||
Depreciation and amortization expense
|
7.4
|
|
|
10.3
|
|
||
Interest expense
|
23.2
|
|
|
19.6
|
|
||
Total Segment Expenses
|
$
|
406.1
|
|
|
$
|
350.1
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Income (loss) before provision for income taxes
|
$
|
(789.0
|
)
|
|
$
|
470.3
|
|
Adjustments:
|
|
|
|
||||
Net unrealized performance revenues
|
528.9
|
|
|
(155.8
|
)
|
||
Unrealized principal investment (income) loss(1)
|
264.7
|
|
|
(238.6
|
)
|
||
Adjusted unrealized principal investment (income) loss from investment in Fortitude Re(1)
|
22.8
|
|
|
(27.0
|
)
|
||
Equity-based compensation(2)
|
31.7
|
|
|
39.4
|
|
||
Acquisition related charges, including amortization of intangibles and impairment
|
3.0
|
|
|
12.0
|
|
||
Other non-operating expense
|
0.2
|
|
|
0.3
|
|
||
Tax expense associated with certain foreign performance fee revenues
|
11.2
|
|
|
(6.1
|
)
|
||
Net loss attributable to non-controlling interests in consolidated entities
|
97.0
|
|
|
4.5
|
|
||
Debt extinguishment costs
|
—
|
|
|
0.1
|
|
||
Corporate conversion costs, severance and other adjustments
|
4.5
|
|
|
1.7
|
|
||
(=) Distributable Earnings
|
$
|
175.0
|
|
|
$
|
100.8
|
|
(-) Realized net performance revenues(3)
|
48.2
|
|
|
7.0
|
|
||
(-) Realized principal investment income(2)
|
15.9
|
|
|
4.1
|
|
||
(+) Net Interest
|
17.9
|
|
|
13.6
|
|
||
(=) Fee Related Earnings
|
$
|
128.8
|
|
|
$
|
103.3
|
|
(1)
|
Adjustments to unrealized principal investment income (loss) are inclusive of $(89.1) million and $229.3 million of unrealized gains (losses), respectively, resulting from changes in the fair value of embedded derivatives related to certain reinsurance contracts included in Fortitude Re’s U.S. GAAP financial statements. Adjusted unrealized principal investment income (loss) from the investment in Fortitude Re represents 19.9% of Fortitude Re’s estimated net income (loss) for the respective periods, excluding the unrealized gains (losses) related to embedded derivatives.
|
(2)
|
Equity-based compensation includes amounts presented in principal investment income and general, administrative and other expenses in our U.S. GAAP statement of operations.
|
|
Three Months Ended March 31, 2020
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments (4)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
|
$
|
(937.6
|
)
|
|
$
|
1,109.2
|
|
|
$
|
171.6
|
|
Performance revenues related compensation expense
|
(442.5
|
)
|
|
565.9
|
|
|
123.4
|
|
|||
Net performance revenues
|
$
|
(495.1
|
)
|
|
$
|
543.3
|
|
|
$
|
48.2
|
|
|
|
|
|
|
|
||||||
Principal investment income (loss)
|
$
|
(253.3
|
)
|
|
$
|
269.2
|
|
|
$
|
15.9
|
|
|
Three Months Ended March 31, 2019
|
||||||||||
|
Carlyle
Consolidated |
|
Adjustments (4)
|
|
Total
Reportable Segments |
||||||
|
(Dollars in millions)
|
||||||||||
Performance revenues
|
$
|
349.1
|
|
|
$
|
(299.9
|
)
|
|
$
|
49.2
|
|
Performance revenues related compensation expense
|
185.4
|
|
|
(143.2
|
)
|
|
42.2
|
|
|||
Net performance revenues
|
$
|
163.7
|
|
|
$
|
(156.7
|
)
|
|
$
|
7.0
|
|
|
|
|
|
|
|
||||||
Principal investment income (loss)
|
$
|
301.8
|
|
|
$
|
(297.7
|
)
|
|
$
|
4.1
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Corporate Private Equity
|
$
|
107.4
|
|
|
$
|
62.1
|
|
Real Assets
|
27.4
|
|
|
18.1
|
|
||
Global Credit
|
31.8
|
|
|
14.2
|
|
||
Investment Solutions
|
8.4
|
|
|
6.4
|
|
||
Distributable Earnings
|
$
|
175.0
|
|
|
$
|
100.8
|
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Segment Revenues
|
|
|
|
||||
Fund level fee revenues
|
|
|
|
||||
Fund management fees
|
$
|
188.5
|
|
|
$
|
190.0
|
|
Portfolio advisory and transaction fees, net and other
|
3.9
|
|
|
3.8
|
|
||
Total fund level fee revenues
|
192.4
|
|
|
193.8
|
|
||
Realized performance revenues
|
53.6
|
|
|
23.4
|
|
||
Realized principal investment income (loss)
|
9.6
|
|
|
(2.3
|
)
|
||
Interest income
|
1.2
|
|
|
1.2
|
|
||
Total revenues
|
256.8
|
|
|
216.1
|
|
||
Segment Expenses
|
|
|
|
||||
Compensation and benefits
|
|
|
|
||||
Cash-based compensation and benefits
|
94.2
|
|
|
96.7
|
|
||
Realized performance revenues related compensation
|
24.3
|
|
|
10.4
|
|
||
Total compensation and benefits
|
118.5
|
|
|
107.1
|
|
||
General, administrative, and other indirect expenses
|
17.5
|
|
|
34.1
|
|
||
Depreciation and amortization expense
|
3.4
|
|
|
4.9
|
|
||
Interest expense
|
10.0
|
|
|
7.9
|
|
||
Total expenses
|
149.4
|
|
|
154.0
|
|
||
Distributable Earnings
|
$
|
107.4
|
|
|
$
|
62.1
|
|
(-) Realized Net Performance Revenues
|
29.3
|
|
|
13.0
|
|
||
(-) Realized Principal Investment Income (Loss)
|
9.6
|
|
|
(2.3
|
)
|
||
(+) Net Interest
|
8.8
|
|
|
6.7
|
|
||
(=) Fee Related Earnings
|
$
|
77.3
|
|
|
$
|
58.1
|
|
|
Three Months Ended
March 31, |
||
|
(Dollars in millions)
|
||
Distributable Earnings, March 31, 2019
|
$
|
62.1
|
|
Increases (decreases):
|
|
||
Increase in fee related earnings
|
19.2
|
|
|
Increase in realized net performance revenues
|
16.3
|
|
|
Increase in realized principal investment income
|
11.9
|
|
|
Increase in net interest
|
(2.1
|
)
|
|
Total increase
|
45.3
|
|
|
Distributable Earnings, March 31, 2020
|
$
|
107.4
|
|
|
Three Months Ended
March 31, |
||
|
(Dollars in millions)
|
||
Fee Related Earnings, March 31, 2019
|
$
|
58.1
|
|
Increases (decreases):
|
|
||
Decrease in fee revenues
|
(1.4
|
)
|
|
Decrease in cash-based compensation and benefits
|
2.5
|
|
|
Decrease in general, administrative and other indirect expenses
|
16.6
|
|
|
All other changes
|
1.5
|
|
|
Total increase
|
19.2
|
|
|
Fee Related Earnings, March 31, 2020
|
$
|
77.3
|
|
|
Three Months Ended
March 31, |
||
|
2020 v. 2019
|
||
|
(Dollars in millions)
|
||
Lower fund management fees
|
$
|
(1.5
|
)
|
Higher portfolio advisory and transaction fees, net and other
|
0.1
|
|
|
Total decrease in fee revenues
|
$
|
(1.4
|
)
|
|
As of March 31,
|
||||||
|
2020
|
|
2019
|
||||
Corporate Private Equity
|
(Dollars in millions)
|
||||||
Components of Fee-earning AUM (1)
|
|
|
|
||||
Fee-earning AUM based on capital commitments
|
$
|
38,277
|
|
|
$
|
36,394
|
|
Fee-earning AUM based on invested capital
|
20,614
|
|
|
23,289
|
|
||
Fee-earning AUM based on lower of cost or fair value
|
2,197
|
|
|
2,218
|
|
||
Total Fee-earning AUM
|
$
|
61,088
|
|
|
$
|
61,901
|
|
Weighted Average Management Fee Rates (2)
|
|
|
|
||||
All Funds
|
1.26
|
%
|
|
1.22
|
%
|
||
Funds in Investment Period
|
1.47
|
%
|
|
1.46
|
%
|
(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
March 31, |
||||||
|
2020
|
|
2019
|
||||
Corporate Private Equity
|
(Dollars in millions)
|
||||||
Fee-earning AUM Rollforward
|
|
|
|
||||
Balance, Beginning of Period
|
$
|
61,660
|
|
|
$
|
62,358
|
|
Inflows (1)
|
43
|
|
|
328
|
|
||
Outflows (including realizations) (2)
|
(257
|
)
|
|
(525
|
)
|
||
Market Activity & Other (3)
|
—
|
|
|
(19
|
)
|
||
Foreign Exchange (4)
|
(358
|
)
|
|
(241
|
)
|
||
Balance, End of Period
|
$
|
61,088
|
|
|
$
|
61,901
|
|
(1)
|
Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based on commitments were activated during the period, and the fee-earning commitments invested in vehicles for which management fees are based on invested capital. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which are referenced as Pending Fee-earning AUM.
|
(2)
|
Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has expired during the period, and reductions for funds that are no longer calling for fees. Realizations for funds earning management fees based on commitments during the period do not affect Fee-earning AUM.
|
(3)
|
Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the lower of cost or fair value.
|
(4)
|
Foreign Exchange 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
March 31, 2020 |
||
|
(Dollars in millions)
|
||
Corporate Private Equity
|
|
||
Total AUM Rollforward
|
|
||
Balance, Beginning of Period
|
$
|
86,429
|
|
Inflows (1)
|
492
|
|
|
Outflows (including realizations) (2)
|
(1,378
|
)
|
|
Market Activity & Other (3)
|
(4,728
|
)
|
|
Foreign Exchange (4)
|
(432
|
)
|
|
Balance, End of Period
|
$
|
80,383
|
|
(1)
|
Inflows 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 net of recallable or recyclable amounts in our carry funds, related co-investment vehicles and separately managed accounts, as well as the expiration of available capital.
|
(3)
|
Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related co-investment vehicles and separately managed accounts, as well as the impact of fees, expenses and non-investment income, and other changes in AUM.
|
(4)
|
Foreign Exchange 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.
|
|
|
|
|
|
TOTAL INVESTMENTS
|
|
REALIZED/PARTIALLY REALIZED INVESTMENTS(7)
|
|||||||||||||||||||||||||
|
|
|
|
|
As of March 31, 2020
|
As of March 31, 2020
|
||||||||||||||||||||||||||
|
|
Fund Vintage (1)
|
Investment Period End/Fee Stepdown
(2)
|
Committed
Capital
|
Cumulative
Invested
Capital(3)
|
Realized
Value(4)
|
Remaining Fair Value(5)
|
MOIC(6)
|
Gross IRR
(9)(17)
|
Net IRR
(10)(17)
|
In Accrued Carry/(Clawback)(11)
|
LTM Realized Carry (12)
|
|
Cumulative
Invested
Capital(3)
|
Total
Fair
Value(13)
|
MOIC(6)
|
Gross
IRR
(9)(17)
|
|||||||||||||||
Corporate
Private Equity
|
|
(Reported in Local Currency, in Millions)
|
|
|
|
(Reported in Local Currency, in Millions)
|
||||||||||||||||||||||||||
Fully Invested/Committed Funds(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
CP V
|
|
2007
|
|
$
|
13,719.7
|
|
$
|
13,190.9
|
|
$
|
26,028.0
|
|
$
|
1,679.2
|
|
2.1x
|
18
|
%
|
14
|
%
|
X
|
X
|
|
$
|
10,777.9
|
|
$
|
26,488.1
|
|
2.5x
|
24
|
%
|
CP VI
|
|
2014
|
|
$
|
13,000.0
|
|
$
|
12,874.2
|
|
$
|
5,929.4
|
|
$
|
12,054.1
|
|
1.4x
|
12
|
%
|
8
|
%
|
X
|
|
|
$
|
3,080.0
|
|
$
|
5,024.2
|
|
1.6x
|
18
|
%
|
CEP II
|
|
2003
|
|
€
|
1,805.4
|
|
€
|
2,048.4
|
|
€
|
4,113.3
|
|
€
|
15.4
|
|
2.0x
|
36
|
%
|
20
|
%
|
X
|
X
|
|
€
|
1,888.9
|
|
€
|
4,120.7
|
|
2.2x
|
43
|
%
|
CEP III
|
|
2007
|
|
€
|
5,294.9
|
|
€
|
5,155.5
|
|
€
|
10,982.2
|
|
€
|
417.6
|
|
2.2x
|
19
|
%
|
14
|
%
|
X
|
X
|
|
€
|
4,667.5
|
|
€
|
11,240.8
|
|
2.4x
|
20
|
%
|
CEP IV
|
|
2014
|
|
€
|
3,669.5
|
|
€
|
3,735.8
|
|
€
|
1,220.3
|
|
€
|
3,370.5
|
|
1.2x
|
9
|
%
|
4
|
%
|
|
|
|
€
|
645.9
|
|
€
|
795.8
|
|
1.2x
|
9
|
%
|
CAP III
|
|
2008
|
|
$
|
2,551.6
|
|
$
|
2,543.2
|
|
$
|
4,416.5
|
|
$
|
222.7
|
|
1.8x
|
16
|
%
|
11
|
%
|
X
|
X
|
|
$
|
2,149.0
|
|
$
|
4,416.7
|
|
2.1x
|
19
|
%
|
CAP IV
|
|
2014
|
|
$
|
3,880.4
|
|
$
|
4,058.8
|
|
$
|
2,832.6
|
|
$
|
3,221.9
|
|
1.5x
|
14
|
%
|
9
|
%
|
X
|
|
|
$
|
1,364.4
|
|
$
|
3,757.6
|
|
2.8x
|
35
|
%
|
CJP II
|
|
2006
|
|
¥
|
165,600.0
|
|
¥
|
141,866.7
|
|
¥
|
205,301.1
|
|
¥
|
1,080.0
|
|
1.5x
|
7
|
%
|
3
|
%
|
|
|
|
¥
|
134,666.7
|
|
¥
|
203,831.2
|
|
1.5x
|
7
|
%
|
CGFSP II
|
|
2013
|
|
$
|
1,000.0
|
|
$
|
942.7
|
|
$
|
897.9
|
|
$
|
702.6
|
|
1.7x
|
21
|
%
|
14
|
%
|
X
|
X
|
|
$
|
406.5
|
|
$
|
801.2
|
|
2.0x
|
28
|
%
|
CEOF I
|
|
2011
|
|
$
|
1,119.1
|
|
$
|
1,173.1
|
|
$
|
1,295.5
|
|
$
|
443.8
|
|
1.5x
|
12
|
%
|
8
|
%
|
X
|
|
|
$
|
505.1
|
|
$
|
1,082.2
|
|
2.1x
|
32
|
%
|
CETP III
|
|
2014
|
|
€
|
656.6
|
|
€
|
580.1
|
|
€
|
664.8
|
|
€
|
579.9
|
|
2.1x
|
39
|
%
|
25
|
%
|
X
|
X
|
|
€
|
160.5
|
|
€
|
664.8
|
|
4.1x
|
54
|
%
|
CAGP IV
|
|
2008
|
|
$
|
1,041.4
|
|
$
|
954.1
|
|
$
|
1,076.5
|
|
$
|
166.5
|
|
1.3x
|
7
|
%
|
2
|
%
|
|
|
|
$
|
589.8
|
|
$
|
1,010.4
|
|
1.7x
|
13
|
%
|
All Other Active Funds, Coinvestments and SMAs(14)
|
|
Various
|
|
|
$
|
10,288.7
|
|
$
|
10,072.3
|
|
$
|
4,558.2
|
|
1.4x
|
10
|
%
|
8
|
%
|
|
|
|
$
|
5,417.4
|
|
$
|
10,169.8
|
|
1.9x
|
16
|
%
|
||
Fully Realized Funds, Coinvestments and SMAs(15)
|
|
Various
|
|
|
$
|
24,914.5
|
|
$
|
63,417.0
|
|
$
|
10.4
|
|
2.5x
|
33
|
%
|
28
|
%
|
|
|
|
$
|
24,914.5
|
|
$
|
63,427.4
|
|
2.5x
|
33
|
%
|
||
Total Fully Invested/Committed Funds
|
$
|
84,896.2
|
|
$
|
136,501.8
|
|
$
|
27,879.0
|
|
1.9x
|
26
|
%
|
18
|
%
|
|
|
|
$
|
58,532.8
|
|
$
|
136,526.4
|
|
2.3x
|
27
|
%
|
||||||
Funds in the Investment Period(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
CP VII
|
|
2018
|
May-24
|
$
|
18,510.0
|
|
$
|
7,849.4
|
|
$
|
39.2
|
|
$
|
7,580.3
|
|
1.0x
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|||||
CEP V
|
|
2018
|
Oct-24
|
€
|
6,416.4
|
|
€
|
1,686.5
|
|
€
|
8.0
|
|
€
|
1,636.5
|
|
1.0x
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
||
CAP V
|
|
2018
|
Jun-24
|
$
|
6,554.2
|
|
$
|
1,144.8
|
|
$
|
275.0
|
|
$
|
959.7
|
|
1.1x
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|||||
CGP
|
|
2015
|
Mar-21
|
$
|
3,588.0
|
|
$
|
2,799.8
|
|
$
|
192.7
|
|
$
|
2,662.8
|
|
1.0x
|
1
|
%
|
Neg
|
|
|
|
|
|
|
|
|
|||||
CJP III
|
|
2013
|
Aug-20
|
¥
|
119,505.1
|
|
¥
|
91,191.7
|
|
¥
|
73,829.1
|
|
¥
|
100,220.1
|
|
1.9x
|
23
|
%
|
14
|
%
|
X
|
|
|
|
|
|
|
|||||
CGFSP III
|
|
2018
|
Dec-23
|
$
|
1,004.6
|
|
$
|
441.4
|
|
$
|
2.7
|
|
$
|
528.0
|
|
1.2x
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|||||
CEOF II
|
|
2015
|
Aug-20
|
$
|
2,400.0
|
|
$
|
2,055.9
|
|
$
|
161.1
|
|
$
|
1,934.0
|
|
1.0x
|
1
|
%
|
Neg
|
|
|
|
|
|
|
|
|
|||||
CETP IV
|
|
2019
|
Jul-25
|
€
|
1,350.0
|
|
€
|
255.3
|
|
€
|
—
|
|
€
|
227.5
|
|
0.9x
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
||
All Other Funds, Coinvestments and SMAs(16)
|
|
Various
|
|
|
$
|
3,633.0
|
|
$
|
537.1
|
|
$
|
3,494.6
|
|
1.1x
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|||||||
Total Funds in the Investment Period
|
$
|
20,901.1
|
|
$
|
1,901.8
|
|
$
|
20,134.5
|
|
1.1x
|
3
|
%
|
Neg
|
|
|
|
|
$
|
522.3
|
|
$
|
1,408.3
|
|
2.7x
|
37
|
%
|
||||||
TOTAL CORPORATE PRIVATE EQUITY(18)
|
$
|
105,797.3
|
|
$
|
138,403.5
|
|
$
|
48,013.5
|
|
1.8x
|
25
|
%
|
17
|
%
|
|
|
|
$
|
59,055.1
|
|
$
|
137,934.6
|
|
2.3x
|
27
|
%
|
(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 fund's investment period end date or, if different, the date at which the management fee calculation basis is scheduled to step down from commitments to remaining invested capital at cost (where applicable). This measure is only relevant and reported for funds currently in the investment period.
|
(3)
|
Represents the original cost of investments since inception of the fund.
|
(4)
|
Represents all realized proceeds since inception of the fund.
|
(5)
|
Represents remaining fair value, before management fees, expenses and carried interest, and may include remaining escrow values for realized investments.
|
(6)
|
Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest, divided by cumulative invested capital.
|
(7)
|
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 insignificant level of realizations for funds of this type. However, to the extent such funds have had realizations, they are included in the Realized/Partially Realized performance information presented for Total Corporate Private Equity.
|
(8)
|
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.
|
(9)
|
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.
|
(10)
|
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.
|
(11)
|
Fund has a net accrued performance fee balance/(giveback obligation) as of the current quarter end, driven by a significant portion of the fund's asset base.
|
(12)
|
Fund has generated realized net performance fees/(realized giveback) in the last twelve months.
|
(13)
|
Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried interest.
|
(14)
|
Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMA's), and certain other stand-alone investments arranged by us: CVP II, MENA, CCI, CSSAF I, CSABF, and CPF.
|
(15)
|
Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMA's), and certain other stand-alone investments arranged by us: CP I, CP II, CP III, CP IV, CEP I, CAP I, CAP II, CBPF I, CJP I, CMG, CVP I, CUSGF III, CGFSP I, CEVP I, CETP I, CETP II, CAVP I, CAVP II, CAGP III and Mexico.
|
(16)
|
Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: CAGP V and CBPF II.
|
(17)
|
For funds marked “NM,” IRR may be positive or negative, but is considered not 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.
|
(18)
|
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
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Segment Revenues
|
|
|
|
||||
Fund level fee revenues
|
|
|
|
||||
Fund management fees
|
$
|
80.2
|
|
|
$
|
77.4
|
|
Portfolio advisory and transaction fees, net and other
|
0.3
|
|
|
3.3
|
|
||
Total fund level fee revenues
|
80.5
|
|
|
80.7
|
|
||
Realized performance revenues
|
11.6
|
|
|
4.9
|
|
||
Realized principal investment income
|
0.6
|
|
|
1.6
|
|
||
Interest income
|
0.6
|
|
|
0.5
|
|
||
Total revenues
|
93.3
|
|
|
87.7
|
|
||
Segment Expenses
|
|
|
|
||||
Compensation and benefits
|
|
|
|
||||
Cash-based compensation and benefits
|
35.5
|
|
|
35.8
|
|
||
Realized performance revenues related compensation
|
5.4
|
|
|
12.0
|
|
||
Total compensation and benefits
|
40.9
|
|
|
47.8
|
|
||
General, administrative, and other indirect expenses
|
19.7
|
|
|
16.8
|
|
||
Depreciation and amortization expense
|
1.4
|
|
|
1.9
|
|
||
Interest expense
|
3.9
|
|
|
3.1
|
|
||
Total expenses
|
65.9
|
|
|
69.6
|
|
||
(=) Distributable Earnings
|
$
|
27.4
|
|
|
$
|
18.1
|
|
(-) Realized Net Performance Revenues
|
6.2
|
|
|
(7.1
|
)
|
||
(-) Realized Principal Investment Income
|
0.6
|
|
|
1.6
|
|
||
(+) Net Interest
|
3.3
|
|
|
2.6
|
|
||
(=) Fee Related Earnings
|
$
|
23.9
|
|
|
$
|
26.2
|
|
|
Three Months Ended
March 31, |
||
|
(Dollars in millions)
|
||
Distributable Earnings, March 31, 2019
|
$
|
18.1
|
|
Increases (decreases):
|
|
||
Decrease in fee related earnings
|
(2.3
|
)
|
|
Increase in realized net performance revenues
|
13.3
|
|
|
Decrease in realized principal investment income
|
(1.0
|
)
|
|
Increase in net interest
|
(0.7
|
)
|
|
Total increase
|
9.3
|
|
|
Distributable Earnings, March 31, 2020
|
$
|
27.4
|
|
|
Three Months Ended
March 31, |
||
|
(Dollars in millions)
|
||
Fee Related Earnings, March 31, 2019
|
$
|
26.2
|
|
Increases (decreases):
|
|
||
Decrease in fee revenues
|
(0.2
|
)
|
|
Decrease in cash-based compensation and benefits
|
0.3
|
|
|
Increase in general, administrative and other indirect expenses
|
(2.9
|
)
|
|
All other changes
|
0.5
|
|
|
Total decrease
|
(2.3
|
)
|
|
Fee Related Earnings, March 31, 2020
|
$
|
23.9
|
|
|
Three Months Ended
March 31, |
||
|
2020 v. 2019
|
||
|
(Dollars in millions)
|
||
Higher fund management fees
|
$
|
2.8
|
|
Lower portfolio advisory and transaction fees, net and other
|
(3.0
|
)
|
|
Total decrease in fee revenues
|
$
|
(0.2
|
)
|
|
As of March 31,
|
||||||
|
2020
|
|
2019
|
||||
Real Assets
|
(Dollars in millions)
|
||||||
Components of Fee-earning AUM (1)
|
|
|
|
||||
Fee-earning AUM based on capital commitments
|
$
|
17,004
|
|
|
$
|
15,247
|
|
Fee-earning AUM based on invested capital (2)
|
11,227
|
|
|
15,616
|
|
||
Fee-earning AUM based on net asset value
|
2,304
|
|
|
1,681
|
|
||
Fee-earning AUM based on lower of cost or fair value and other (3)
|
356
|
|
|
364
|
|
||
Total Fee-earning AUM (4)
|
$
|
30,891
|
|
|
$
|
32,908
|
|
Weighted Average Management Fee Rates (5)
|
|
|
|
||||
All Funds
|
1.26
|
%
|
|
1.22
|
%
|
||
Funds in Investment Period
|
1.30
|
%
|
|
1.32
|
%
|
(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 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 advisors 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 committee of Energy III, but the investment period for this fund has expired and the remaining investments in such fund are being disposed of in the ordinary course of business. As of March 31, 2020, the Legacy Energy Funds had, in the aggregate, approximately $1.8 billion in AUM and $1.5 billion in Fee-earning AUM. NGP IX, or in the case of NGP M&R and NGP ETP II, certain affiliated entities (collectively, the “NGP Predecessor Funds”) and NGP X, NGP GAP, NGP XI, and NGP XII (referred to herein as the “NGP Carry Funds”, collectively with the NGP Predecessor Funds, the “NGP Energy Funds”), are managed by NGP Energy Capital Management (“NGP”). As of March 31, 2020, the NGP Energy Funds had, in the aggregate, approximately $9.4 billion in AUM and $9.7 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% and 55% interest in management fees earned by the Legacy Energy funds and the NGP Energy Funds, respectively.
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Real Assets
|
(Dollars in millions)
|
||||||
Fee-earning AUM Rollforward
|
|
|
|
||||
Balance, Beginning of Period
|
$
|
33,151
|
|
|
$
|
32,977
|
|
Inflows (1)
|
757
|
|
|
390
|
|
||
Outflows (including realizations) (2)
|
(2,795
|
)
|
|
(553
|
)
|
||
Market Activity & Other (3)
|
(136
|
)
|
|
28
|
|
||
Foreign Exchange (4)
|
(86
|
)
|
|
66
|
|
||
Balance, End of Period
|
$
|
30,891
|
|
|
$
|
32,908
|
|
(1)
|
Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based on commitments were activated during the period, the fee-earning commitments invested in vehicles for which management fees are based on invested capital, and gross subscriptions in open-ended vehicles with management fees based on net asset value. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which are referenced as Pending Fee-earning AUM.
|
(2)
|
Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has expired during the period, reductions for funds that are no longer calling for fees, and gross redemptions in open-ended vehicles with management fees based on net asset value. Realizations for funds earning management fees based on commitments during the period do not affect Fee-earning AUM.
|
(3)
|
Market Activity & Other 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)
|
Foreign Exchange 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
March 31, 2020 |
||
|
(Dollars in millions)
|
||
Real Assets
|
|
||
Total AUM Rollforward
|
|
||
Balance, Beginning of Period
|
$
|
43,355
|
|
Inflows (1)
|
1,114
|
|
|
Outflows (including realizations) (2)
|
(477
|
)
|
|
Market Activity & Other (3)
|
(4,053
|
)
|
|
Foreign Exchange (4)
|
(145
|
)
|
|
Balance, End of Period
|
$
|
39,794
|
|
(1)
|
Inflows 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 net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, separately managed accounts and the NGP Predecessor Funds, gross redemptions in our open-ended funds, and the expiration of available capital.
|
(3)
|
Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds and related co-investment vehicles, the NGP Predecessor Funds and separately managed accounts, as well as the net impact of fees, expenses and non-investment income, and other changes in AUM.
|
(4)
|
Foreign Exchange 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.
|
|
|
|
|
|
TOTAL INVESTMENTS
|
|
REALIZED/PARTIALLY REALIZED INVESTMENTS(7)
|
|||||||||||||||||||||||||
|
|
|
|
|
As of March 31, 2020
|
As of March 31, 2020
|
||||||||||||||||||||||||||
|
|
Fund Vintage (1)
|
Investment Period End/Fee Stepdown
(2)
|
Committed
Capital
|
Cumulative
Invested
Capital(3)
|
Realized
Value(4)
|
Remaining Fair Value(5)
|
MOIC(6)
|
Gross IRR
(9)(17)
|
Net IRR
(10)(17)
|
In Accrued Carry/(Clawback)(11)
|
LTM Realized Carry (12)
|
|
Cumulative
Invested
Capital(3)
|
Total
Fair
Value(13)
|
MOIC(6)
|
Gross
IRR
(9)(17)
|
|||||||||||||||
Real Assets
|
|
(Reported in Local Currency, in Millions)
|
|
|
|
(Reported in Local Currency, in Millions)
|
||||||||||||||||||||||||||
Fully Invested/Committed Funds(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
CRP III
|
|
2000
|
|
$
|
564.1
|
|
$
|
522.5
|
|
$
|
1,588.4
|
|
$
|
293.3
|
|
3.6x
|
44
|
%
|
30
|
%
|
X
|
X
|
|
$
|
522.5
|
|
$
|
1,881.6
|
|
3.6x
|
44
|
%
|
CRP IV
|
|
2004
|
|
$
|
950.0
|
|
$
|
1,261.6
|
|
$
|
1,711.4
|
|
$
|
287.5
|
|
1.6x
|
7
|
%
|
4
|
%
|
|
|
|
$
|
1,204.5
|
|
$
|
1,985.7
|
|
1.6x
|
7
|
%
|
CRP V
|
|
2006
|
|
$
|
3,000.0
|
|
$
|
3,349.2
|
|
$
|
5,073.9
|
|
$
|
786.0
|
|
1.7x
|
12
|
%
|
9
|
%
|
X
|
X
|
|
$
|
3,227.1
|
|
$
|
5,763.8
|
|
1.8x
|
13
|
%
|
CRP VI
|
|
2010
|
|
$
|
2,340.0
|
|
$
|
2,152.7
|
|
$
|
3,595.6
|
|
$
|
310.7
|
|
1.8x
|
27
|
%
|
18
|
%
|
X
|
X
|
|
$
|
1,705.9
|
|
$
|
3,450.9
|
|
2.0x
|
32
|
%
|
CRP VII
|
|
2014
|
|
$
|
4,161.6
|
|
$
|
3,677.5
|
|
$
|
3,501.8
|
|
$
|
2,246.1
|
|
1.6x
|
19
|
%
|
12
|
%
|
X
|
X
|
|
$
|
1,918.5
|
|
$
|
3,471.8
|
|
1.8x
|
26
|
%
|
CEREP III
|
|
2007
|
|
€
|
2,229.5
|
|
€
|
2,052.7
|
|
€
|
2,379.9
|
|
€
|
102.5
|
|
1.2x
|
4
|
%
|
1
|
%
|
|
|
|
€
|
1,911.6
|
|
€
|
2,393.3
|
|
1.3x
|
5
|
%
|
CIEP I
|
|
2013
|
|
$
|
2,500.0
|
|
$
|
2,264.0
|
|
$
|
860.6
|
|
$
|
1,982.5
|
|
1.3x
|
13
|
%
|
5
|
%
|
|
|
|
$
|
665.4
|
|
$
|
1,300.1
|
|
2.0x
|
23
|
%
|
NGP X
|
|
2012
|
|
$
|
3,586.0
|
|
$
|
3,343.9
|
|
$
|
2,963.3
|
|
$
|
598.1
|
|
1.1x
|
2
|
%
|
Neg
|
|
|
|
|
$
|
2,018.0
|
|
$
|
2,865.4
|
|
1.4x
|
14
|
%
|
NGP XI
|
|
2014
|
|
$
|
5,325.0
|
|
$
|
4,916.1
|
|
$
|
1,583.2
|
|
$
|
3,510.2
|
|
1.0x
|
1
|
%
|
Neg
|
|
|
|
|
$
|
1,373.9
|
|
$
|
1,592.0
|
|
1.2x
|
33
|
%
|
Energy III
|
|
2005
|
|
$
|
3,800.0
|
|
$
|
3,569.7
|
|
$
|
5,248.6
|
|
$
|
152.2
|
|
1.5x
|
9
|
%
|
5
|
%
|
|
|
|
$
|
3,152.1
|
|
$
|
5,044.9
|
|
1.6x
|
11
|
%
|
Energy IV
|
|
2007
|
|
$
|
5,979.1
|
|
$
|
6,371.4
|
|
$
|
6,812.6
|
|
$
|
490.5
|
|
1.1x
|
5
|
%
|
0
|
%
|
|
(X)
|
|
$
|
5,731.6
|
|
$
|
6,767.0
|
|
1.2x
|
6
|
%
|
Renew II
|
|
2008
|
|
$
|
3,417.5
|
|
$
|
2,833.5
|
|
$
|
2,930.9
|
|
$
|
1,032.5
|
|
1.4x
|
7
|
%
|
4
|
%
|
(X)
|
|
|
$
|
2,376.5
|
|
$
|
2,946.6
|
|
1.2x
|
5
|
%
|
All Other Active Funds, Coinvestments and SMAs(14)
|
|
Various
|
|
|
$
|
5,303.6
|
|
$
|
6,533.7
|
|
$
|
2,134.9
|
|
1.6x
|
8
|
%
|
7
|
%
|
|
|
|
$
|
3,560.6
|
|
$
|
6,590.3
|
|
1.9x
|
11
|
%
|
||
Fully Realized Funds, Coinvestments and SMAs(15)
|
|
Various
|
|
|
$
|
8,018.8
|
|
$
|
10,615.4
|
|
$
|
13.6
|
|
1.3x
|
18
|
%
|
9
|
%
|
|
|
|
$
|
8,018.8
|
|
$
|
10,629.0
|
|
1.3x
|
19
|
%
|
||
Total Fully Invested/Committed Funds
|
$
|
49,836.6
|
|
$
|
55,630.7
|
|
$
|
13,950.6
|
|
1.4x
|
11
|
%
|
6
|
%
|
|
|
|
$
|
37,572.6
|
|
$
|
56,915.1
|
|
1.5x
|
13
|
%
|
||||||
Funds in the Investment Period(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
CRP VIII
|
|
2017
|
May-22
|
$
|
5,505.1
|
|
$
|
2,143.4
|
|
$
|
125.6
|
|
$
|
2,343.9
|
|
1.2x
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|||||
NGP XII
|
|
2017
|
Jul-22
|
$
|
4,277.6
|
|
$
|
1,967.0
|
|
$
|
0.1
|
|
$
|
1,677.2
|
|
0.9x
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
||
CIEP II
|
|
2019
|
Apr-25
|
$
|
2,242.7
|
|
$
|
366.1
|
|
$
|
—
|
|
$
|
330.2
|
|
0.9x
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|||||
CPP II
|
|
2014
|
Apr-21
|
$
|
1,526.7
|
|
$
|
1,101.5
|
|
$
|
295.9
|
|
$
|
991.7
|
|
1.2x
|
7
|
%
|
1
|
%
|
|
|
|
|
|
|
|
|||||
CPI
|
|
2016
|
n/a
|
$
|
3,044.9
|
|
$
|
2,466.2
|
|
$
|
484.2
|
|
$
|
2,395.8
|
|
1.2x
|
13
|
%
|
11
|
%
|
X
|
X
|
|
|
|
|
|
|||||
CGIOF
|
|
2018
|
Sep-23
|
$
|
2,201.4
|
|
$
|
226.0
|
|
$
|
28.8
|
|
$
|
201.5
|
|
1.0x
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|||||
All Other Funds, Coinvestments and SMAs(16)
|
|
Various
|
|
|
$
|
1,832.0
|
|
$
|
233.6
|
|
$
|
1,615.9
|
|
1.0x
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|||||||
Total Funds in the Investment Period
|
$
|
10,102.2
|
|
$
|
1,168.3
|
|
$
|
9,556.2
|
|
1.1x
|
6
|
%
|
Neg
|
|
|
|
|
$
|
283.6
|
|
$
|
515.7
|
|
1.8x
|
NM
|
|
||||||
TOTAL REAL ASSETS(18)
|
$
|
59,938.8
|
|
$
|
56,798.9
|
|
$
|
23,506.7
|
|
1.3x
|
11
|
%
|
5
|
%
|
|
|
|
$
|
37,856.2
|
|
$
|
57,430.8
|
|
1.5
|
13
|
%
|
(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 Real Assets segment our first fund was formed in 1997.
|
(2)
|
Represents the fund's investment period end date or, if different, the date at which the management fee calculation basis is scheduled to step down from commitments to remaining invested capital at cost (where applicable). This measure is only relevant and reported for funds currently in the investment period.
|
(3)
|
Represents the original cost of investments since inception of the fund.
|
(4)
|
Represents all realized proceeds since inception of the fund.
|
(5)
|
Represents remaining fair value, before management fees, expenses and carried interest, and may include remaining escrow values for realized investments.
|
(6)
|
Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest, divided by cumulative invested capital.
|
(7)
|
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
|
(8)
|
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.
|
(9)
|
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.
|
(10)
|
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.
|
(11)
|
Fund has a net accrued performance fee balance/(giveback obligation) as of the current quarter end, driven by a significant portion of the fund's asset base.
|
(12)
|
Fund has generated realized net performance fees/(realized giveback) in the last twelve months.
|
(13)
|
Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried interest.
|
(14)
|
Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: NGP GAP and CPOCP.
|
(15)
|
Aggregate includes the following funds: CRP I, CRP II, CRCP I, CAREP I, CAREP II, CEREP I, CEREP II, Energy I, Energy II, Renew I, and CIP.
|
(16)
|
Aggregate includes CCR, CRSEF, and CER. Return is not considered meaningful, as the investment period commenced in October 2016 for CCR, December 2019 for CRSEF, and December 2017 for CER.
|
(17)
|
For funds marked “NM,” IRR may be positive or negative, but is considered not 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.
|
(18)
|
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
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Segment Revenues
|
|
|
|
||||
Fund level fee revenues
|
|
|
|
||||
Fund management fees
|
$
|
73.0
|
|
|
$
|
74.8
|
|
Portfolio advisory and transaction fees, net and other
|
2.6
|
|
|
2.9
|
|
||
Total fund level fee revenues
|
75.6
|
|
|
77.7
|
|
||
Realized performance revenues
|
21.0
|
|
|
—
|
|
||
Realized principal investment income
|
5.1
|
|
|
4.6
|
|
||
Interest income
|
3.1
|
|
|
3.8
|
|
||
Total revenues
|
104.8
|
|
|
86.1
|
|
||
Segment Expenses
|
|
|
|
||||
Compensation and benefits
|
|
|
|
||||
Cash-based compensation and benefits
|
49.1
|
|
|
46.6
|
|
||
Realized performance revenues related compensation
|
9.7
|
|
|
—
|
|
||
Total compensation and benefits
|
58.8
|
|
|
46.6
|
|
||
General, administrative, and other indirect expenses
|
5.6
|
|
|
16.5
|
|
||
Depreciation and amortization expense
|
1.6
|
|
|
2.1
|
|
||
Interest expense
|
7.0
|
|
|
6.7
|
|
||
Total expenses
|
73.0
|
|
|
71.9
|
|
||
(=) Distributable Earnings
|
$
|
31.8
|
|
|
$
|
14.2
|
|
(-) Realized Net Performance Revenues
|
11.3
|
|
|
—
|
|
||
(-) Realized Principal Investment Income
|
5.1
|
|
|
4.6
|
|
||
(+) Net Interest
|
3.9
|
|
|
2.9
|
|
||
(=) Fee Related Earnings
|
$
|
19.3
|
|
|
$
|
12.5
|
|
|
Three Months Ended
March 31, |
||
|
(Dollars in millions)
|
||
Distributable Earnings, March 31, 2019
|
$
|
14.2
|
|
Increases (decreases):
|
|
||
Increase in fee related earnings
|
6.8
|
|
|
Increase in realized net performance revenues
|
11.3
|
|
|
Increase in realized principal investment income
|
0.5
|
|
|
Increase in net interest
|
(1.0
|
)
|
|
Total increase
|
17.6
|
|
|
Distributable Earnings, March 31, 2020
|
$
|
31.8
|
|
|
Three Months Ended
March 31, |
||
|
(Dollars in millions)
|
||
Fee Related Earnings, March 31, 2019
|
$
|
12.5
|
|
Increases (decreases):
|
|
||
Decrease in fee revenues
|
(2.1
|
)
|
|
Increase in cash-based compensation and benefits
|
(2.5
|
)
|
|
Decrease in general, administrative and other indirect expenses
|
10.9
|
|
|
All other changes
|
0.5
|
|
|
Total increase
|
6.8
|
|
|
Fee Related Earnings, March 31, 2020
|
$
|
19.3
|
|
|
As of March 31,
|
||||||
|
2020
|
|
2019
|
||||
Global Credit
|
(Dollars in millions)
|
||||||
Components of Fee-earning AUM (1)
|
|
|
|
||||
Fee-earning AUM based on capital commitments
|
$
|
4,133
|
|
|
$
|
7,403
|
|
Fee-earning AUM based on invested capital
|
5,198
|
|
|
2,174
|
|
||
Fee-earning AUM based on collateral balances, at par
|
25,304
|
|
|
23,713
|
|
||
Fee-earning AUM based on net asset value
|
1,297
|
|
|
1,024
|
|
||
Fee-earning AUM based on other (2)
|
2,133
|
|
|
2,230
|
|
||
Total Fee-earning AUM
|
$
|
38,065
|
|
|
$
|
36,544
|
|
Weighted Average Management Fee Rates (3)
|
|
|
|
||||
All Funds, excluding CLOs
|
1.28
|
%
|
|
1.22
|
%
|
(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.
|
(3)
|
Represents the aggregate effective management fee rate for carry funds, weighted by each fund’s Fee-earning AUM, as of the end of each period presented. Management fees for CLOs are based on the total par amount of the assets (collateral) and principal balance of the notes in the fund and are not calculated as a percentage of equity and are therefore not included.
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
Global Credit
|
(Dollars in millions)
|
||||||
Fee-earning AUM Rollforward
|
|
|
|
||||
Balance, Beginning of Period
|
$
|
37,862
|
|
|
$
|
35,152
|
|
Inflows (1)
|
1,060
|
|
|
1,324
|
|
||
Outflows (including realizations) (2)
|
(898
|
)
|
|
(70
|
)
|
||
Market Activity & Other (3)
|
209
|
|
|
277
|
|
||
Foreign Exchange (4)
|
(168
|
)
|
|
(139
|
)
|
||
Balance, End of Period
|
$
|
38,065
|
|
|
$
|
36,544
|
|
(1)
|
Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based on commitments were activated during the period, the fee-earning commitments invested in vehicles for which management fees are based on invested capital, the fee-earning collateral balance of new CLO issuances, as well as gross subscriptions in our vehicles for which management fees are based on net asset value. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which are referenced as Pending Fee-earning AUM.
|
(2)
|
Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has expired during the period, reductions for funds that are no longer calling for fees, gross redemptions in our open-ended funds, and runoff of CLO collateral balances. Realizations for funds earning management fees based on commitments during the period do not affect Fee-earning AUM.
|
(3)
|
Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in funds or vehicles based on the lower of cost or fair value or net asset value, as well as activity of funds with fees based on gross asset value.
|
(4)
|
Foreign Exchange 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
March 31, 2020 |
||
|
(Dollars in millions)
|
||
Global Credit
|
|
||
Total AUM Rollforward
|
|
||
Balance, Beginning of Period
|
$
|
49,412
|
|
Inflows (1)
|
1,258
|
|
|
Outflows (including realizations) (2)
|
(514
|
)
|
|
Market Activity & Other (3)
|
(1,172
|
)
|
|
Foreign Exchange (4)
|
(182
|
)
|
|
Balance, End of Period
|
$
|
48,802
|
|
(1)
|
Inflows 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. New CLO warehouse assets are recognized as an inflow to AUM, while corresponding fundraising will not be recognized until CLO issuance.
|
(2)
|
Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and separately managed accounts, gross redemptions in our open-ended funds, runoff of CLO collateral balances, and the expiration of available capital.
|
(3)
|
Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related co-investment vehicles, and separately managed accounts, as well as the impact of fees, expenses and non-investment income, change in gross asset value for our business development companies and other changes in AUM.
|
(4)
|
Foreign Exchange 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.
|
(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 fund's investment period end date or, if different, the date at which the management fee calculation basis is scheduled to step down from commitments to remaining invested capital at cost (where applicable). This measure is only relevant and reported for funds currently in the investment period.
|
(3)
|
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 all realized proceeds since inception of the fund.
|
(5)
|
Represents remaining fair value, before management fees, expenses and carried interest, and may include remaining escrow values for realized investments.
|
(6)
|
Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest, divided by cumulative invested capital.
|
(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)
|
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.
|
(10)
|
Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: SASOF II, SASOF III, and CASCOF.
|
(11)
|
Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: CSP I, CMP I, and CMP II.
|
(12)
|
Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: SASOF IV and CSC.
|
(13)
|
For funds marked “NM,” IRR may be positive or negative, but is considered not 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.
|
(14)
|
Fund has a net accrued performance fee balance/(giveback obligation) as of the current quarter end, driven by a significant portion of the fund's asset base.
|
(15)
|
Fund has generated realized net performance fees/(realized giveback) in the last twelve months.
|
|
Three Months Ended
March 31, |
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Segment Revenues
|
|
|
|
||||
Fund level fee revenues
|
|
|
|
||||
Fund management fees
|
$
|
39.8
|
|
|
$
|
39.4
|
|
Total fund level fee revenues
|
39.8
|
|
|
39.4
|
|
||
Realized performance revenues
|
85.4
|
|
|
20.9
|
|
||
Realized principal investment income
|
0.6
|
|
|
0.2
|
|
||
Interest income
|
0.4
|
|
|
0.5
|
|
||
Total revenues
|
126.2
|
|
|
61.0
|
|
||
Segment Expenses
|
|
|
|
||||
Compensation and benefits
|
|
|
|
||||
Cash-based compensation and benefits
|
25.0
|
|
|
23.2
|
|
||
Realized performance revenues related compensation
|
84.0
|
|
|
19.8
|
|
||
Total compensation and benefits
|
109.0
|
|
|
43.0
|
|
||
General, administrative, and other indirect expenses
|
5.5
|
|
|
8.3
|
|
||
Depreciation and amortization expense
|
1.0
|
|
|
1.4
|
|
||
Interest expense
|
2.3
|
|
|
1.9
|
|
||
Total expenses
|
117.8
|
|
|
54.6
|
|
||
(=) Distributable Earnings
|
$
|
8.4
|
|
|
$
|
6.4
|
|
(-) Realized Net Performance Revenues
|
1.4
|
|
|
1.1
|
|
||
(-) Realized Principal Investment Income
|
0.6
|
|
|
0.2
|
|
||
(+) Net Interest
|
1.9
|
|
|
1.4
|
|
||
(=) Fee Related Earnings
|
$
|
8.3
|
|
|
$
|
6.5
|
|
|
Three Months Ended
March 31, |
||
|
(Dollars in millions)
|
||
Distributable Earnings, March 31, 2019
|
$
|
6.4
|
|
Increases (decreases):
|
|
||
Increase in fee related earnings
|
1.8
|
|
|
Increase in realized net performance revenues
|
0.3
|
|
|
Increase in realized principal investment income
|
0.4
|
|
|
Increase in net interest
|
(0.5
|
)
|
|
Total increase
|
2.0
|
|
|
Distributable Earnings, March 31, 2020
|
$
|
8.4
|
|
|
Three Months Ended
March 31, |
||
|
(Dollars in millions)
|
||
Fee Related Earnings, March 31, 2019
|
$
|
6.5
|
|
Increases (decreases):
|
|
||
Increase in fee revenues
|
0.4
|
|
|
Increase in cash-based compensation and benefits
|
(1.8
|
)
|
|
Decrease in general, administrative and other indirect expenses
|
2.8
|
|
|
All other changes
|
0.4
|
|
|
Total increase
|
1.8
|
|
|
Fee Related Earnings, March 31, 2020
|
$
|
8.3
|
|
|
As of March 31,
|
||||||
|
2020
|
|
2019
|
||||
Investment Solutions
|
(Dollars in millions)
|
||||||
Components of Fee-earning AUM (1)
|
|
|
|
||||
Fee-earning AUM based on capital commitments
|
$
|
12,761
|
|
|
$
|
11,978
|
|
Fee-earning AUM based on invested capital (2)
|
2,079
|
|
|
1,573
|
|
||
Fee-earning AUM based on net asset value
|
660
|
|
|
850
|
|
||
Fee-earning AUM based on lower of cost or fair market value
|
12,702
|
|
|
14,269
|
|
||
Total Fee-earning AUM
|
$
|
28,202
|
|
|
$
|
28,670
|
|
(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
March 31, |
||||||
|
2020
|
|
2019
|
||||
Investment Solutions
|
(Dollars in millions)
|
||||||
Fee-earning AUM Rollforward
|
|
|
|
||||
Balance, Beginning of Period
|
$
|
28,384
|
|
|
$
|
29,065
|
|
Inflows (1)
|
1,037
|
|
|
1,189
|
|
||
Outflows (including realizations) (2)
|
(706
|
)
|
|
(1,120
|
)
|
||
Market Activity & Other (3)
|
(44
|
)
|
|
(70
|
)
|
||
Foreign Exchange (4)
|
(469
|
)
|
|
(394
|
)
|
||
Balance, End of Period
|
$
|
28,202
|
|
|
$
|
28,670
|
|
(1)
|
Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based on commitments were activated during the period and the fee-earning commitments invested in vehicles for which management fees are based on invested capital. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which are referenced as Pending Fee-earning AUM.
|
(2)
|
Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has expired during the period, and reductions for funds that are no longer calling for fees. Distributions for funds earning management fees based on commitments during the period do not affect Fee-earning AUM.
|
(3)
|
Market Activity & Other 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)
|
Foreign Exchange 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
March 31, 2020 |
||
|
(Dollars in millions)
|
||
Investment Solutions
|
|
||
Total AUM Rollforward
|
|
||
Balance, Beginning of Period
|
$
|
45,246
|
|
Inflows (1)
|
4,269
|
|
|
Outflows (including realizations) (2)
|
(1,555
|
)
|
|
Market Activity & Other (3)
|
813
|
|
|
Foreign Exchange (4)
|
(819
|
)
|
|
Balance, End of Period
|
$
|
47,954
|
|
(1)
|
Inflows 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 the expiration of available capital.
|
(3)
|
Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related co-investment vehicles and separately managed accounts, the net impact of fees, expenses and noninvestment income, as well as other changes in AUM. The fair market values for our Investment Solutions primary and secondary carry funds are based on the latest available valuations of the underlying limited partnership interests as provided by their general partners which typically has a lag of up to 90 days, plus the net cash flows since the latest valuation, up to March 31, 2020.
|
(4)
|
Foreign Exchange 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.
|
|
|
|
|
TOTAL INVESTMENTS
|
||||||||||||||||||
|
|
|
|
As of March 31, 2020
|
||||||||||||||||||
Investment Solutions (1)
|
|
Vintage Year
|
Fund Size
|
Cumulative
Invested
Capital
(2)(3)
|
Realized Value (3)
|
Remaining Fair Value
|
Total Fair
Value (4)
|
MOIC
(5)
|
Gross
IRR (7) (9)
|
Net
IRR
(8) (9)
|
||||||||||||
|
|
|
|
(Reported in Local Currency, in Millions)
|
||||||||||||||||||
AlpInvest
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fully Committed Funds (6)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Main Fund I - Fund Investments
|
|
2000
|
€
|
5,174.6
|
|
€
|
4,416.2
|
|
€
|
7,189.3
|
|
€
|
80.0
|
|
€
|
7,269.3
|
|
1.6x
|
12
|
%
|
11
|
%
|
Main Fund II - Fund Investments
|
|
2003
|
€
|
4,545.0
|
|
€
|
4,991.5
|
|
€
|
7,645.2
|
|
€
|
370.0
|
|
€
|
8,015.2
|
|
1.6x
|
10
|
%
|
9
|
%
|
Main Fund III - Fund Investments
|
|
2005
|
€
|
11,500.0
|
|
€
|
13,417.3
|
|
€
|
19,510.9
|
|
€
|
2,757.1
|
|
€
|
22,268.0
|
|
1.7x
|
10
|
%
|
10
|
%
|
Main Fund IV - Fund Investments
|
|
2009
|
€
|
4,877.3
|
|
€
|
5,544.4
|
|
€
|
6,680.8
|
|
€
|
3,593.4
|
|
€
|
10,274.2
|
|
1.9x
|
17
|
%
|
17
|
%
|
Main Fund V - Fund Investments
|
|
2012
|
€
|
5,080.0
|
|
€
|
5,344.5
|
|
€
|
3,181.1
|
|
€
|
5,266.8
|
|
€
|
8,447.9
|
|
1.6x
|
16
|
%
|
15
|
%
|
Main Fund VI - Fund Investments
|
|
2015
|
€
|
1,106.4
|
|
€
|
898.6
|
|
€
|
285.0
|
|
€
|
931.0
|
|
€
|
1,216.0
|
|
1.4x
|
17
|
%
|
16
|
%
|
Main Fund II - Secondary Investments
|
|
2003
|
€
|
998.4
|
|
€
|
1,045.8
|
|
€
|
1,894.6
|
|
€
|
16.8
|
|
€
|
1,911.4
|
|
1.8x
|
27
|
%
|
26
|
%
|
Main Fund III - Secondary Investments
|
|
2006
|
€
|
2,250.0
|
|
€
|
2,443.7
|
|
€
|
3,674.7
|
|
€
|
69.2
|
|
€
|
3,744.0
|
|
1.5x
|
11
|
%
|
10
|
%
|
Main Fund IV - Secondary Investments
|
|
2010
|
€
|
1,859.1
|
|
€
|
2,001.6
|
|
€
|
3,213.0
|
|
€
|
207.7
|
|
€
|
3,420.7
|
|
1.7x
|
19
|
%
|
18
|
%
|
Main Fund V - Secondary Investments
|
|
2011
|
€
|
4,272.8
|
|
€
|
4,259.3
|
|
€
|
5,079.6
|
|
€
|
1,898.0
|
|
€
|
6,977.5
|
|
1.6x
|
20
|
%
|
18
|
%
|
Main Fund III - Co-Investments
|
|
2006
|
€
|
2,760.0
|
|
€
|
2,899.0
|
|
€
|
3,676.6
|
|
€
|
441.9
|
|
€
|
4,118.5
|
|
1.4x
|
5
|
%
|
5
|
%
|
Main Fund IV - Co-Investments
|
|
2010
|
€
|
1,475.0
|
|
€
|
1,394.3
|
|
€
|
3,205.0
|
|
€
|
445.0
|
|
€
|
3,650.0
|
|
2.6x
|
23
|
%
|
22
|
%
|
Main Fund V - Co-Investments
|
|
2012
|
€
|
1,122.2
|
|
€
|
1,072.8
|
|
€
|
1,783.0
|
|
€
|
917.8
|
|
€
|
2,700.8
|
|
2.5x
|
28
|
%
|
26
|
%
|
Main Fund VI - Co-Investments
|
|
2014
|
€
|
1,114.6
|
|
€
|
955.8
|
|
€
|
1,130.3
|
|
€
|
1,006.4
|
|
€
|
2,136.7
|
|
2.2x
|
27
|
%
|
25
|
%
|
Main Fund II - Mezzanine Investments
|
|
2004
|
€
|
700.0
|
|
€
|
779.9
|
|
€
|
1,064.9
|
|
€
|
12.5
|
|
€
|
1,077.4
|
|
1.4x
|
7
|
%
|
7
|
%
|
Main Fund III - Mezzanine Investments
|
|
2006
|
€
|
2,000.0
|
|
€
|
2,052.4
|
|
€
|
2,595.9
|
|
€
|
173.8
|
|
€
|
2,769.7
|
|
1.3x
|
10
|
%
|
9
|
%
|
All Other Active Funds (10)
|
|
Various
|
|
€
|
2,541.2
|
|
€
|
1,455.1
|
|
€
|
1,555.2
|
|
€
|
3,010.3
|
|
1.2x
|
5
|
%
|
4
|
%
|
||
Fully Realized Funds
|
|
Various
|
|
€
|
2,172.0
|
|
€
|
4,910.9
|
|
€
|
1.6
|
|
€
|
4,912.6
|
|
2.3x
|
35
|
%
|
32
|
%
|
||
Total Fully Committed Funds
|
|
|
|
€
|
58,230.1
|
|
€
|
78,175.8
|
|
€
|
19,744.2
|
|
€
|
97,920.1
|
|
1.7x
|
13
|
%
|
12
|
%
|
||
Funds in the Commitment Period (6)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Main Fund VI - Secondary Investments
|
|
2017
|
€
|
5,209.4
|
|
€
|
3,656.1
|
|
€
|
547.4
|
|
€
|
3,829.5
|
|
€
|
4,376.9
|
|
1.2x
|
15
|
%
|
11
|
%
|
Main Fund VII - Co-Investments
|
|
2017
|
€
|
2,529.0
|
|
€
|
1,542.4
|
|
€
|
52.8
|
|
€
|
1,635.6
|
|
€
|
1,688.4
|
|
1.1x
|
7
|
%
|
4
|
%
|
All Other Funds (10)
|
|
Various
|
|
€
|
1,670.2
|
|
€
|
224.3
|
|
€
|
1,603.6
|
|
€
|
1,827.9
|
|
1.1x
|
9
|
%
|
7
|
%
|
||
Total Funds in the Commitment Period
|
|
€
|
6,868.8
|
|
€
|
824.4
|
|
€
|
7,068.7
|
|
€
|
7,893.1
|
|
1.1x
|
12
|
%
|
9
|
%
|
||||
TOTAL ALPINVEST
|
|
|
|
€
|
65,098.9
|
|
€
|
79,000.3
|
|
€
|
26,812.9
|
|
€
|
105,813.2
|
|
1.6x
|
13
|
%
|
12
|
%
|
||
TOTAL ALPINVEST (USD) (11)
|
|
$
|
71,427.4
|
|
$
|
86,680.1
|
|
$
|
29,419.5
|
|
$
|
116,099.6
|
|
1.6x
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Metropolitan Real Estate
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Active Fully Committed Funds
|
|
Various
|
$
|
2,744.3
|
|
$
|
2,568.9
|
|
$
|
2,735.6
|
|
$
|
645.8
|
|
$
|
3,381.4
|
|
1.3x
|
7
|
%
|
5
|
%
|
Fully Realized Funds
|
|
Various
|
$
|
611.2
|
|
$
|
588.7
|
|
$
|
710.4
|
|
$
|
0.5
|
|
$
|
710.9
|
|
1.2x
|
4
|
%
|
2
|
%
|
Total Fully Committed Funds (6)
|
|
|
|
|
$
|
3,157.7
|
|
$
|
3,446.0
|
|
$
|
646.3
|
|
$
|
4,092.3
|
|
1.3x
|
6
|
%
|
4
|
%
|
|
MRE Secondaries Fund II
|
|
2017
|
$
|
1,165.2
|
|
$
|
301.6
|
|
$
|
67.8
|
|
$
|
263.3
|
|
$
|
331.1
|
|
1.1x
|
9
|
%
|
Neg
|
|
All Other Funds in the Commitment Period
|
|
Various
|
$
|
515.7
|
|
$
|
92.9
|
|
$
|
7.6
|
|
$
|
80.9
|
|
$
|
88.5
|
|
1.0x
|
NM
|
|
NM
|
|
Total Funds in the Commitment Period (6)
|
|
|
$
|
394.5
|
|
$
|
75.4
|
|
$
|
344.2
|
|
$
|
419.6
|
|
1.1x
|
6
|
%
|
Neg
|
|
|||
TOTAL METROPOLITAN REAL ESTATE
|
|
|
$
|
3,552.2
|
|
$
|
3,521.5
|
|
$
|
990.5
|
|
$
|
4,511.9
|
|
1.3x
|
6
|
%
|
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, and c) LP co-investment vehicles advised by AlpInvest. As of March 31, 2020, these excluded investments represent $0.4 billion of AUM at AlpInvest.
|
(2)
|
Represents the original cost of investments since inception of the fund.
|
(3)
|
To exclude the impact of FX, all AlpInvest foreign currency cash flows have been converted to Euro at the reporting period spot rate.
|
(4)
|
Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried interest. To exclude the impact of FX, all AlpInvest foreign currency cash flows have been converted to Euro at the reporting period spot rate.
|
(5)
|
Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest, divided by cumulative invested capital.
|
(6)
|
Fully Committed funds are past the expiration date of the commitment period as defined in the respective limited partnership agreement.
|
(7)
|
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.
|
(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)
|
For funds marked “NM,” IRR may be positive or negative, but is considered not 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.
|
(10)
|
Aggregate includes Main Fund VII - Fund Investments, Main Fund VIII - Fund Investments, Main Fund IX - Fund Investments, Main Fund X - Fund Investments, Main Fund XI - Fund 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.
|
(11)
|
Represents the U.S. dollar equivalent balance translated at the spot rate as of period end.
|
Asset Class
|
Accrued
Performance Allocations
|
|
Accrued
Giveback
Obligation
|
|
Net Accrued
Performance
Revenues
|
||||||
|
(Dollars in millions)
|
||||||||||
Corporate Private Equity
|
$
|
1,424.4
|
|
|
$
|
(5.4
|
)
|
|
$
|
1,419.0
|
|
Real Assets
|
535.6
|
|
|
(16.9
|
)
|
|
518.7
|
|
|||
Global Credit
|
52.8
|
|
|
(0.1
|
)
|
|
52.7
|
|
|||
Investment Solutions (1)
|
739.3
|
|
|
—
|
|
|
739.3
|
|
|||
Total
|
$
|
2,752.1
|
|
|
$
|
(22.4
|
)
|
|
$
|
2,729.7
|
|
Less: Accrued performance allocation-related compensation
|
|
(1,502.3
|
)
|
||||||||
Plus: Receivable for giveback obligations from current and former employees
|
|
1.4
|
|
||||||||
Less: Deferred taxes on accrued performance allocations
|
|
(40.4
|
)
|
||||||||
Less: Net accrued performance allocations attributable to non-controlling interests in consolidated entities
|
|
(1.7
|
)
|
||||||||
Net accrued performance revenues before timing differences
|
|
1,186.7
|
|
||||||||
Less/Plus: Timing differences between the period when accrued performance allocations are realized
and the period they are collected/distributed
|
|
14.1
|
|
||||||||
Net accrued performance revenues attributable to The Carlyle Group Inc.
|
|
$
|
1,200.8
|
|
|
Carry Fund Appreciation/(Depreciation)(1)
|
|
Net Accrued
Performance Revenues
|
|||||||||||||||
|
Q1 2019
|
|
Q2 2019
|
|
Q3 2019
|
|
Q4 2019
|
|
Q1 2020
|
|
||||||||
Overall Carry Fund Appreciation/(Depreciation)
|
3
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
(7
|
)%
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate Private Equity
|
3
|
%
|
|
1
|
%
|
|
1
|
%
|
|
3
|
%
|
|
(8
|
)%
|
|
$
|
775.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real Assets(2):
|
3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0
|
%
|
|
(12
|
)%
|
|
286.2
|
|
|
Real Estate
|
5
|
%
|
|
6
|
%
|
|
3
|
%
|
|
1
|
%
|
|
(1
|
)%
|
|
282.7
|
|
|
Natural Resources
|
3
|
%
|
|
(4
|
)%
|
|
(3
|
)%
|
|
(1
|
)%
|
|
(22
|
)%
|
|
5.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Global Credit Carry Funds (3)
|
5
|
%
|
|
1
|
%
|
|
(2
|
)%
|
|
(1
|
)%
|
|
(21
|
)%
|
|
29.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Investment Solutions Carry Funds (4)
|
3
|
%
|
|
4
|
%
|
|
7
|
%
|
|
1
|
%
|
|
1
|
%
|
|
109.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net Accrued Performance Revenues
|
|
|
|
|
|
|
|
|
|
|
$
|
1,200.8
|
|
|
Investments in Carlyle Funds
|
|
Investments in NGP(1)
|
|
Investment in Fortitude Re(1)
|
|
Total
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Investments, excluding performance allocations
|
$
|
1,181.8
|
|
|
$
|
379.3
|
|
|
$
|
1,077.9
|
|
|
$
|
2,639.0
|
|
Less: Amounts attributable to non-controlling interests in consolidated entities
|
(191.8
|
)
|
|
—
|
|
|
—
|
|
|
(191.8
|
)
|
||||
Plus: Investments in Consolidated Funds, eliminated in consolidation
|
63.1
|
|
|
—
|
|
|
—
|
|
|
63.1
|
|
||||
Less: Strategic equity method investments in NGP Management
|
—
|
|
|
(379.3
|
)
|
|
—
|
|
|
(379.3
|
)
|
||||
Less: Investment in NGP general partners - accrued performance allocations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Less: Mark-to-market gains associated with strategic equity method investment in Fortitude Re
|
—
|
|
|
—
|
|
|
(539.1
|
)
|
|
(539.1
|
)
|
||||
Total investments attributable to The Carlyle Group Inc., exclusive of NGP Management
|
$
|
1,053.1
|
|
|
$
|
—
|
|
|
$
|
538.8
|
|
|
$
|
1,591.9
|
|
Adjusted investment in Fortitude Re
|
$
|
538.8
|
|
Investments in Carlyle Funds, excluding CLOs:
|
|
||
Corporate Private Equity funds
|
352.5
|
|
|
Real Assets funds(1)
|
176.8
|
|
|
Global Credit funds
|
88.2
|
|
|
Investment Solutions funds (2)
|
39.4
|
|
|
Total investments in Carlyle Funds, excluding CLOs
|
656.9
|
|
|
Investments in CLOs
|
372.0
|
|
|
Other investments
|
24.2
|
|
|
Total investments attributable to The Carlyle Group Inc.
|
1,591.9
|
|
|
CLO loans and other borrowings attributable to The Carlyle Group Inc. (3)
|
(305.2
|
)
|
|
Total investments attributable to The Carlyle Group Inc., net of CLO loans and other borrowings
|
$
|
1,286.7
|
|
•
|
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, including corporate income taxes following the Conversion;
|
•
|
pay dividends to our common stockholders in accordance with our dividend policy, and;
|
•
|
make installment payments under the deferred obligation to former holders of Carlyle Holdings partnership units,
|
•
|
repurchase our common stock.
|
Asset Class
|
Unfunded
Commitment
|
||
Corporate Private Equity
|
$
|
2,323.1
|
|
Real Assets
|
953.7
|
|
|
Global Credit
|
379.2
|
|
|
Investment Solutions
|
244.3
|
|
|
Total
|
$
|
3,900.3
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
|
(Dollars in millions)
|
||||||
Statements of Cash Flows Data
|
|
|
|
||||
Net cash provided by (used in) operating activities, including investments in Carlyle funds
|
$
|
(245.9
|
)
|
|
$
|
341.0
|
|
Net cash used in investing activities
|
(13.2
|
)
|
|
(7.1
|
)
|
||
Net cash provided by (used in) financing activities
|
456.6
|
|
|
(251.8
|
)
|
||
Effect of foreign exchange rate changes
|
(17.0
|
)
|
|
7.7
|
|
||
Net change in cash, cash equivalents and restricted cash
|
$
|
180.5
|
|
|
$
|
89.8
|
|
|
Apr. 1, 2020 to
Dec. 31, 2020 |
|
2021-2022
|
|
2023-2024
|
|
Thereafter
|
|
Total
|
||||||||||
|
(Dollars in millions)
|
||||||||||||||||||
Debt obligations (including senior notes) (1)
|
$
|
1.0
|
|
|
$
|
19.1
|
|
|
$
|
585.3
|
|
|
$
|
1,592.3
|
|
|
$
|
2,197.7
|
|
Interest payable (2)
|
69.4
|
|
|
181.4
|
|
|
153.9
|
|
|
1,151.5
|
|
|
1,556.2
|
|
|||||
Other consideration (3)
|
83.3
|
|
|
219.8
|
|
|
298.7
|
|
|
—
|
|
|
601.8
|
|
|||||
Operating lease obligations (4)
|
41.0
|
|
|
102.2
|
|
|
101.4
|
|
|
434.3
|
|
|
678.9
|
|
|||||
Capital commitments to Carlyle funds (5)
|
3,933.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,933.2
|
|
|||||
Tax receivable agreement payments (6)
|
—
|
|
|
—
|
|
|
41.4
|
|
|
66.0
|
|
|
107.4
|
|
|||||
Loans payable of Consolidated Funds (7)
|
69.4
|
|
|
184.1
|
|
|
184.4
|
|
|
5,364.6
|
|
|
5,802.5
|
|
|||||
Unfunded commitments of the CLOs (8)
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|||||
Consolidated contractual obligations
|
4,201.2
|
|
|
706.6
|
|
|
1,365.1
|
|
|
8,608.7
|
|
|
14,881.6
|
|
|||||
Loans payable of Consolidated Funds (7)
|
(69.4
|
)
|
|
(184.1
|
)
|
|
(184.4
|
)
|
|
(5,364.6
|
)
|
|
(5,802.5
|
)
|
|||||
Capital commitments to Carlyle funds (5)
|
(3,368.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,368.7
|
)
|
|||||
Unfunded commitments of the CLOs (8)
|
(3.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.9
|
)
|
|||||
Carlyle Operating Entities contractual obligations
|
$
|
759.2
|
|
|
$
|
522.5
|
|
|
$
|
1,180.7
|
|
|
$
|
3,244.1
|
|
|
$
|
5,706.5
|
|
(1)
|
The table above assumes that no prepayments are made on the senior notes and that any outstanding balance on the senior credit facility is repaid on the maturity date of the senior credit facility, which is February 11, 2024. The CLO term loans are included in the table above based on the earlier of the stated maturity date or the date the CLO is expected to be dissolved. See Note 5 to the unaudited condensed consolidated financial statements for the various maturity dates of the CLO term loans and senior notes.
|
(2)
|
The interest rates on the debt obligations as of March 31, 2020 consist of: 3.500% on $425.0 million of senior notes, 5.650% on $350.0 million of senior notes, 3.875% on $250.0 million of senior notes, 5.625% on $600.0 million of senior notes, 2.06% on $250.0 million under the revolving credit facility, and a range of approximately 1.75% to 3.75% for our CLO term loans. Interest payments assume that no prepayments are made and loans are held until maturity with the exception of the CLO term loans, which are based on the earlier of the stated maturity date or the date the CLO is expected to be dissolved.
|
(3)
|
These obligations represent our estimate of amounts to be paid on the contingent cash and other obligations associated with our acquisition of Carlyle Aviation Partners and our investment in Fortitude Re (see Note 4), and other obligations, as well as the deferred payment obligations described below. In connection with the Conversion, former holders of Carlyle Holdings partnership units will receive cash payments aggregating to approximately $344 million, which is equivalent to $1.50 per Carlyle Holdings partnership unit exchanged in the Conversion, payable in five annual installments of $0.30, the first of which occurred during the first quarter of 2020. The payment obligations are unsecured obligations of the Company or a subsidiary thereof, subordinated in right of payment to indebtedness of the Company and its subsidiaries, and do not bear interest.
|
(4)
|
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. In July 2018, we entered into a new non-cancelable lease agreement expiring in 2036 for new office space in New York City. Our office leases in other locations expire in various years through 2032. The amounts in this table represent the minimum lease payments required over the term of the lease.
|
(5)
|
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 $3.9 billion of unfunded commitments, approximately $3.4 billion is subscribed individually by senior Carlyle professionals, advisors and other professionals, with the balance funded directly by the Company.
|
(6)
|
In connection with our initial public offering, we entered into a tax receivable agreement with the limited partners of the Carlyle Holdings partnerships whereby we agreed to pay such limited partners 85% of the amount of cash tax savings, if any, in U.S. federal, state and local income tax realized as a result of increases in tax basis resulting from exchanges of Carlyle Holdings partnership units for common units of The Carlyle Group L.P. From and after the consummation of the Conversion, former holders of Carlyle Holdings partnership units do not have any rights to payments under the tax receivable agreement except for payment obligations pre-existing at the time of the Conversion with respect to exchanges that occurred prior to the Conversion. These obligations are more than offset by the future cash tax savings that we are expected to realize.
|
(7)
|
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 March 31, 2020, at spreads to market rates pursuant to the debt agreements, and range from 0.40% to 9.53%.
|
(8)
|
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.
|
|
Shares as of December 31, 2019
|
|
Shares
Issued
|
|
Shares
Forfeited |
|
Shares
Exchanged |
|
Shares Repurchased / Retired
|
|
Shares as of March 31, 2020
|
||||||
The Carlyle Group Inc. common shares
|
117,840,651
|
|
|
2,290,161
|
|
|
—
|
|
|
229,318,248
|
|
|
(1,090,437
|
)
|
|
348,358,623
|
|
Carlyle Holdings partnership units
|
229,318,248
|
|
|
—
|
|
|
—
|
|
|
(229,318,248
|
)
|
|
—
|
|
|
—
|
|
Total
|
347,158,899
|
|
|
2,290,161
|
|
|
—
|
|
|
—
|
|
|
(1,090,437
|
)
|
|
348,358,623
|
|
•
|
Performance Revenues. During the quarter ended March 31, 2020, our investment valuations declined from their valuations at December 31, 2019. These valuation declines resulted in a significant decline in our net accrued performance revenues as of March 31, 2020 and, if such declines are sustained, would adversely impact our realized performance revenues in future periods. In addition, our ability to realize performance revenues from our investments may be adversely impacted by decreased portfolio company revenues and earnings, lack of potential buyers with financial resources to pursue an acquisition, or limited or no ability to conduct initial public offerings or follow-on offerings in equity capital markets. The deferral of realizations may also put pressure on accrued performance revenues as preferred return hurdles rise. If the current economic environment persists, it may also cause a slowdown in our investment pace, which may also adversely affect our ability to generate performance revenues.
|
•
|
Management Fees. The pandemic is impeding our ability to market new or successor funds as anticipated, which may result in less or delayed or decreased management fees. In addition, in light of the recent decline in public equity markets and other components of their investment portfolios, fund investors may become restricted by their asset allocation policies to invest in new or successor funds that we provide, or may be prohibited by new laws or regulations from funding existing commitments. As described above, we may also experience a slowdown in the deployment of our capital, which could also adversely affect our ability to raise capital for new or successor funds and could also impact the management fees we earn on those carry funds and managed accounts that generate fees based on invested (and not committed) capital. Certain management fees may also be adversely impacted by decreased valuations in the underlying investments. For example, in our CLO business, defaults or downgrades of certain of the CLO’s underlying collateral obligations below specified thresholds has resulted in funds not being available to pay the management fees we earn on certain investment vehicles, which may result in a temporary deferral or permanent loss of such management fees. Additionally, transaction and advisory fees may be impacted by a slower pace of closed investments. Delays or decreases in management fees and transaction and advisory fees will negatively impact our fee related earnings.
|
•
|
Liquidity. The pandemic may strain our liquidity. Declines or delays in realized performance revenues and management fees would adversely impact our cash flows and liquidity. While as of March 31, 2020, we have $1.5 billion of immediate liquidity, made up of $1.0 billion of cash on hand, inclusive of $250 million of cash drawn on our revolving credit facility in March 2020, and $525 million of additional available capacity under our revolving credit facility, to the extent we incur additional debt relative to our current level of earnings or experience a decrease in our level of earnings as a result of COVID-19 or otherwise, our credit rating could be adversely impacted. Any downgrade in our credit rating would increase our interest expense under our existing credit facility and could limit the availability of future financing. Furthermore, there is an increased risk that third-party investors in our investment
|
•
|
Portfolio Company Performance. Some of our investments are in industries that are materially impacted by COVID-19. In particular, many portfolio companies in the energy, infrastructure, healthcare, travel, entertainment, hospitality, and retail industries are facing operational and financial hardships resulting from the spread of COVID-19 and related governmental measures, such as the closure of stores, restrictions on travel, quarantines or stay-at-home orders. If the disruptions caused by COVID-19 continue and the restrictions put in place are not lifted in the near term, the businesses of these portfolio companies could suffer materially or become insolvent, which would decrease the value of our funds’ investments and potentially harm our reputation.
|
•
|
Portfolio Company Liquidity. Our portfolio companies are also facing or may face in the future increased credit and liquidity risk due to volatility in financial markets, reduced revenue streams, and limited or higher cost of access to preferred sources of funding, which may result in potential impairment of our or our funds’ equity investments. Changes in the debt financing markets are impacting, or, if the volatility in financial market continues, may in the future impact, the ability of our portfolio companies to meet their respective financial obligations. In addition, borrowers of loans, notes and other credit instruments in our credit funds’ portfolios may be unable to meet their principal or interest payment obligations or satisfy financial covenants, and tenants leasing real estate properties owned by our funds may not be able to pay rents in a timely manner or at all, resulting in a decrease in value of our funds’ credit and real estate investments and lower than expected return. In addition, for variable interest instruments, lower reference rates resulting from government stimulus programs in response to COVID-19 could lead to lower interest income for our credit funds.
|
•
|
Operational Risks. Travel restrictions, the closure of non-essential businesses and shelter-in-place orders may make it more difficult and costly for our investment teams to conduct due diligence and consummate the acquisition and disposition of investments for our funds. An extended period of remote working by our employees could also introduce operational risks, including technology availability and heightened cybersecurity risk. Remote working environments may be less secure and more susceptible to hacking attacks, including phishing and social engineering attempts that seek to exploit the COVID-19 pandemic. In addition, our data security, data privacy, investor reporting and business continuity processes could be impacted by a third party’s inability to perform due to COVID-19 or by failures of, or attacks on, their information systems and technology. Also, our accounting and financial reporting systems, processes, and controls could be impacted as a result of these risks.
|
•
|
Employee-Related Risks. COVID-19 presents a significant threat to our employees’ well-being and morale. Our key employees or executive officers may become sick or otherwise unable to perform their duties for an extended period of time and we may experience a potential loss of productivity.
|
•
|
Regulatory and Litigation Risks. Costly litigation could increase in connection with merger and acquisition transactions, as parties to such transactions explore ways to avoid transactions by the assertion of claims of force majeure, material adverse change in the condition of target investments, and/or fraudulent misrepresentation. We also anticipate that regulatory oversight and enforcement will become more rigorous for the financial services industry and other regulated industries as a result of the recent shock to financial markets, especially in the wake of the array of governmental financial assistance programs provided by state and national governments around the world, such as grants and loan programs provided under the US CARES Act. In addition, any new laws or regulations that are passed in response to COVID-19 could adversely impact the fund industry generally and/or us specifically. For example, members of Congress have recently proposed a moratorium on mergers and acquisitions.
|
Period
|
(a) Total number of shares
purchased
|
(b) Average price paid per share
|
(c) Total number of shares purchased as part of publicly announced plans or programs
|
(d) Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs
|
||||||
(Dollars in millions, except share and per share data)
|
||||||||||
January 1, 2020 to January 31, 2020 (1)
|
—
|
|
$
|
—
|
|
—
|
|
$
|
165.5
|
|
|
|
|
|
|
||||||
February 1, 2020 to February 29, 2020 (1)(2)
|
252,946
|
|
$
|
30.59
|
|
252,946
|
|
$
|
157.8
|
|
|
|
|
|
|
||||||
March 1, 2020 to March 31, 2020 (1)(2)
|
837,491
|
|
$
|
22.33
|
|
837,491
|
|
$
|
139.1
|
|
Total
|
1,090,437
|
|
|
1,090,437
|
|
|
Exhibit No.
|
Description
|
|
|
3.1
|
|
|
|
3.2
|
|
|
|
3.3
|
|
|
|
10.1
|
|
|
|
10.2
|
|
|
|
10.3
|
|
|
|
10.4
|
|
|
|
10.5
|
|
|
|
10.6+
|
|
|
|
10.7+
|
|
|
|
10.8+
|
|
|
|
10.9*+
|
|
|
|
10.10+
|
|
|
|
10.11+
|
|
|
|
10.12*+
|
|
|
|
31.1 *
|
|
|
|
31.2 *
|
|
|
|
31.3 *
|
|
|
|
32.1 *
|
|
|
|
Exhibit No.
|
Description
|
|
|
32.2 *
|
|
|
|
32.3 *
|
|
|
|
101.INS
|
Inline XBRL Instance Document - the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Labels Linkbase Document.
|
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
104
|
The cover page from The Carlyle Group Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, formatted in Inline XBRL (included within the Exhibit 101 attachments).
|
*
|
Filed herewith.
|
+
|
Management contract or compensatory plan or arrangement in which directors and/or executive officers are eligible to participate.
|
|
|
The Carlyle Group Inc.
|
||
|
|
|
||
Date: April 30, 2020
|
|
By:
|
|
/s/ Curtis L. Buser
|
|
|
Name:
|
|
Curtis L. Buser
|
|
|
Title:
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer and Authorized Officer)
|
Participant:
|
Date of Grant:
|
Number of RSUs:
|
|
I.
|
Definitions. Capitalized terms not otherwise defined in the Plan or the Agreement have the following meanings:
|
a.
|
[Performance Metrics]
|
b.
|
“Performance Period” means [___] through [___].
|
c.
|
“Weighting Multiplier” means the relative performance weighting associated with each performance metric listed below, as a percentage of the total Target RSU Award.
|
II.
|
Vesting. Subject to the Participant’s continued Services with the Company and its Affiliates through the Vesting Date (other than as may be set forth in the Agreement), on the Vesting Date, a number of RSUs shall vest in an amount equal to the product of (1) the Target RSU Award, (2) the applicable Performance Multiplier and (3) the applicable Weighting Multiplier, each as determined below (with such amount calculated separately for each of the three performance metrics listed below and the resulting sum of such amounts constituting the total Vested RSUs). Any RSUs that do not become vested in accordance with this Exhibit A shall, effective as of the Vesting Date, be forfeited by the Participant without consideration.
|
(a)
|
all outstanding RSUs (whether or not vested, as allowable under applicable law) shall immediately terminate and be forfeited without consideration and no further Shares with respect of the Award shall be delivered to the Participant or to the Participant’s legal representative, beneficiaries or heirs; and
|
(b)
|
any Shares that have previously been delivered to the Participant or the Participant’s legal representative, beneficiaries or heirs pursuant to the Award, which are still held by the Participant or the Participant’s legal representative, or beneficiaries or heirs as of the date of such breach, shall also immediately terminate and be forfeited without consideration.
|
Participant:
|
Date of Grant:
|
Number of RSUs:
|
|
a.
|
“Cause” shall have the meaning set forth in the Employment Agreement.
|
b.
|
“Change of Control” shall have the meaning set forth in the Employment Agreement.
|
c.
|
“Disability” shall mean the Participant’s incapacitation as described in Section 5.b.i. of the Employment Agreement.
|
d.
|
“Employment Agreement” shall mean the Employment Agreement by and between the Participant and the Employer (as defined in Section 15 of the Award Agreement) dated October 23, 2017, as amended and/or restated from time to time.
|
e.
|
“Good Reason” shall have the meaning set forth in the Employment Agreement.
|
f.
|
“Performance Multiplier” shall mean the relevant multiplier, between [__]% and [__]%, applied to the Target RSU Award based on actual performance of the relevant performance metrics during the Performance Period, as set forth on Exhibit A.
|
g.
|
“Performance Period” shall mean [____] through [____].
|
h.
|
“Qualifying Event” shall mean, during the Participant’s Services with the Company and its Affiliates, the Participant’s death or Disability.
|
i.
|
“Restrictive Covenant Agreement” shall mean any agreement, including, without limitation, this Award Agreement, and any attachments or schedules thereto, entered into by and between the Participant and the Company or its Affiliates, pursuant to which the Participant has agreed, among other things, to certain restrictions relating to non-competition (if applicable), non-solicitation and/or confidentiality, in order to protect the business of the Company and its Affiliates.
|
j.
|
“Special Vesting Event” shall mean, during Participant’s Services with the Company and its Affiliates, (i) the termination of the Participant’s Services without Cause or by the Participant for Good Reason or (ii) if the term of the Employment Agreement ends on December 31, 2022 and the Participant’s Services have not previously terminated for any reason, the termination of the Participant’s Services for any reason other than due to Cause following such term expiration (provided, in each case, that at the time of the relevant termination the Employer did not have grounds to terminate the Participant’s employment for Cause).
|
k.
|
“Target RSU Award” shall mean the target number of RSUs that are eligible to vest pursuant to Exhibit A.
|
l.
|
“Vested RSUs” shall mean those RSUs which have become vested (x) determined by multiplying the Target RSU Award by the Performance Multiplier pursuant to Exhibit A or (y) otherwise pursuant to the Plan. For the avoidance of doubt, the Vested RSUs may be a number lesser than or greater than the Target RSU Award.
|
m.
|
“Vesting Date” shall mean the day on which the Board of Directors or its designee certifies the attainment of the established performance metrics set forth on Exhibit A, which shall occur promptly (but no more than eight (8) business days) following certification of the Company’s fourth quarter results for the last year of the Performance Period.
|
Performance Period
|
Target RSU Award
|
Performance Measurement Exhibit
|
|
|
|
1
|
If this Award Agreement is delivered to the Participant electronically, the Participant’s electronic acceptance of the Award Agreement (pursuant to instructions separately communicated to the Participant) shall constitute acceptance of the Award Agreement and shall be binding on the Participant and the Company in lieu of any required signatures to this Award Agreement.
|
I.
|
Definitions. Capitalized terms not otherwise defined in the Plan or the Agreement have the following meanings:
|
a.
|
“Beginning Stock Price” means for any company the volume weighted average trading price of the company’s common equity interests over the [___] consecutive trading-day period ending [____]. In the case of the Company, such beginning stock price is $[___].
|
b.
|
“Ending Stock Price” means for any company the volume weighted average trading price of the company’s common equity interests over the [___] consecutive trading-day period ending [___].
|
c.
|
“Comparison Group” means the companies in the S&P 500 Financials Index as of the first day of the Performance Period. Any company in the Comparison Group that ceases to be publicly held during the Performance Period (i) due to bankruptcy, liquidation or reorganization, shall remain in the Comparison Group for purposes of the calculation of Relative TSR (with such company deemed to have a Total Shareholder Return of -100% and ranked at the bottom of the Comparison Group) or (ii) due to a merger, sale, acquisition, business combination or other similar event, shall be excluded from the Comparison Group for purposes of calculation of Relative TSR.
|
d.
|
“Performance Period” means [___] through [___].
|
e.
|
“Relative TSR” means the Company’s Total Shareholder Return percentile ranking within the Comparison Group. The Total Shareholder Return percentile ranking within the Comparison Group shall be calculated as follows. Following the end of the Performance Period, the Board of Directors or its designee shall calculate (a) the Company’s Total Shareholder Return for the Performance Period and (b) the Total Shareholder Return for the companies that are within the Comparison Group for the Performance Period. The Company’s Total Shareholder Return percentile rank will be determined by ranking the companies in the Comparison Group from highest to lowest according to their respective Total Shareholder Return, then calculating the percentile ranking of the Company relative to the other companies in the Comparison Group.
|
f.
|
“Total Shareholder Return” or “TSR” means: (i) the sum of (x) the Ending Stock Price minus the Beginning Stock Price, plus (y) the amount of any dividends and distributions paid on a per share basis (calculated as if such dividends had been reinvested in the applicable company’s common stock or other common equity securities on the applicable dividend date) cumulatively over the Performance Period, divided by (ii) the Beginning Stock Price. For purposes of this Agreement, TSR calculated in accordance with the preceding sentence shall be expressed as a compounded annualized growth rate over the Performance Period.
|
II.
|
Vesting. Subject to the Participant’s continued Services with the Company and its Affiliates through the Vesting Date (other than as may be set forth in the Agreement), a number of RSUs shall vest in an amount equal to the product of (1) the Target RSU Award (i.e., [___] Shares) and (2) the applicable Performance Multiplier; provided, that the Performance Multiplier shall be deemed to be 0% in the event that the Total Shareholder Return of the Company does not achieve a [__]% compounded annualized rate of return over the Performance Period (and zero RSUs will vest in such case). Any RSUs that do not become vested in accordance with this Exhibit A shall, effective as of the Vesting Date, be forfeited by the Participant without consideration.
|
Performance Level
|
Relative TSR Percentile Rank
|
Performance Multiplier
|
Below Threshold Level Performance
|
Less than [__]th Percentile
|
[__]%
|
Threshold Level Performance
|
[__]th Percentile
|
[__]%
|
Target Level Performance
|
[__]th Percentile
|
[__]%
|
Maximum Level Performance
|
[__]th Percentile or above
|
[__]%
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 of The Carlyle Group Inc.;
|
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;
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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: April 30, 2020
|
|
/s/ Kewsong Lee
|
Kewsong Lee
|
Co-Chief Executive Officer
|
The Carlyle Group Inc.
|
(Co-Principal Executive Officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 of The Carlyle Group Inc.;
|
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: April 30, 2020
|
|
/s/ Glenn A. Youngkin
|
Glenn A. Youngkin
|
Co-Chief Executive Officer
|
The Carlyle Group Inc.
|
(Co-Principal Executive Officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 of The Carlyle Group Inc.;
|
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: April 30, 2020
|
|
/s/ Curtis L. Buser
|
Curtis L. Buser
|
Chief Financial Officer
|
The Carlyle Group Inc.
|
(Principal Financial Officer)
|
/s/ Kewsong Lee
|
Kewsong Lee
|
Co-Chief Executive Officer
|
The Carlyle Group Inc.
|
*
|
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
|
The Carlyle Group Inc.
|
*
|
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
|
The Carlyle Group Inc.
|
*
|
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.
|