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Carlyle doubles earnings after European rise

July 31, 2014

GREG ROUMELIOTIS



CARLYLE Group said yesterday its second-quarter earnings doubled from a year earlier as one of its European buyout funds started paying performance fees.


While two US buyout funds accounted for more than half of all of Carlyle's performance fees in the quarter, the Washington, DC-based private equity firm said its third European buyout fund was now also a contributor.


"Europe and Japan are both priced at about 20 per cent lower than the United States. That is too big a discount," William Conway, Carlyle's co-chief executive, said.


Carlyle said economic net income, an earnings metric that factors in the mark-to-market value of its portfolio, soared to $318m (188.1m) in the second quarter from $156m a year earlier, as it took advantage of a stock market rally and buoyant capital markets to exit more of its portfolio companies.


Carlyle Europe Partners III, a 5.3bn (4.2bn) private equity fund that Carlyle launched in 2006, contributed to the earnings by starting to pay the 20 per cent share of its profits that Carlyle is entitled to in the form of carried interest, the firm's cash earnings.


Reuters


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Source: City A.M. (UK)


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