Thursday, July 28, 2016

Carlyle Group Legends Admit Failure

WSJ presented evidence of difficulties facing private equity underwriters.  They failed to mention loss of investor confidence as The Carlyle Group's assets under management fell to levels not seen since 2013.

WSJ reported:

“Right now, it is tough to earn returns of 20% or more in the private-equity business,” Mr. Conway said on an earnings call Wednesday, referring to the returns historically achieved by the industry’s top-performing funds.
Not long ago Carlyle's co-founders bragged of 30% annual returns.

Investors are “willing to take lower rates of return than the kinds that we’ve averaged over our history,” Mr. Rubenstein said. “It’s just so difficult now with low interest rates and low equity market appreciation to get these kind of returns anywhere else.”
Spoken like a true PEU.