Carlyle Group Posts Loss for Q3

MarketWatch reported:

Carlyle Group LP on Wednesday said it swung to a third-quarter loss as its private-equity and energy funds lost value, the pace of deals slowed and it took a big charge related to losses at a hedge fund it owns.

The Washington, D.C., firm reported a loss of $84 million, or $1.11 a share, compared with a profit of $25 million, or 35 cents a share, in the same period last year.

Carlyle's SEC filing stated:

GAAP results for Q3 2015 included loss before provision for income taxes of $(529) million 

Private equity underwriters use economic net income, a nonstandard way of reporting earnings.  The story highlighted areas in which Carlyle took losses, nearly every section of its giant portfolio:

Carlyle's funds that can earn the firm a slice of profits depreciated by 4% in the quarter, as its buyout funds lost 3% and its credit and hedge funds dropped 9%. The firm took a $162 million charge related to losses and investor redemptions at a credit hedge fund managed by its Claren Road Asset Management LLC.

Carlyle's newer energy and infrastructure funds fell 4%, while its older energy investments managed by Riverstone Holdings LLC plummeted 17%. Carlyle's real-estate funds were the lone risers, gaining 6%.

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Carlyle said its assets under management at the end of September were $187.7 billion, down from $202.6 billion a year earlier and $192.8 billion at the end of June.

The last time Carlyle's AUM dropped significantly was the 2008 financial crisis and its aftermath.