Global private equity and venture capital news and research

Carlyle returns bumper $19bn to investors in 2011 thanks to buyout exits

11 Apr 2012

Private equity giant The Carlyle Group returned a record $19bn to investors last year thanks to a string of exits, more than double its 2010 total.

The 152 per cent jump in distributable earnings will be a major boost to the firm’s planned IPO, from which it is reportedly hoping to raise up to $8bn.

Carlyle’s updated IPO filing with regulators showed its distributable earnings for 2011 were $864.4m, more than double the $342.5m from the year before.

But its economic net income dropped from $1bn to £833.1m over the same period due to volatility in the financial markets.

The filing also showed that just 14 per cent of these earnings came from management fees, compared to 82 per cent for rival Blackstone and 46 per cent for KKR.

Such figures could also prove popular with investors concerned the standard two per cent management fee and 20 per cent carried interest on profits structure does not give firms enough incentive to work on asset sales.

Bain Capital is reportedly about to rip up the structure as it looks to raise a monster new fund of up to $8bn by charging as little as 0.5 per cent as a management fee, while relying on 30 per cent carried interest.

Carlyle plans to put up to ten per cent of its business on the block in its planned IPO according to a filing with the US Securities and Exchange Commission.

The group has $147bn of assets under management in 89 active funds and 52 fund of fund vehicles.

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