Carlyle raises $22 bln in 2013

The Carlyle Group reported $840 million of distributable earnings, 22 percent higher than 2012, with $17.4 billion of carry fund realized proceeds in 2013. Carlyle raised $3.8 billion in capital raised in the fourth quarter, and a total of $22 billion raised in 2013.

Press Release

The Carlyle Group Announces Fourth Quarter and Full Year 2013 Financial Results
• $401 million of Distributable Earnings on a pre-tax basis in Q4 2013, or $1.18 per common unit on a post-tax basis
• Full year 2013 Distributable Earnings of $840 million, 22% higher than 2012, and $2.50 in post-tax Distributable Earnings per common unit
• Declared quarterly distribution of $1.40 per common unit for Q4 2013 for an aggregate distribution of $1.88 for 2013
• $6.3 billion in carry fund realized proceeds in Q4 2013, with $17.4 billion realized in 2013
• $3.8 billion in new capital raised in Q4 2013 and $22.0 billion raised in 2013
• $2.2 billion in carry fund equity invested in Q4 2013 and $8.2 billion invested in 2013
• 6% carry fund portfolio appreciation in Q4 2013 and 20% carry fund portfolio appreciation in 2013
• U.S. GAAP net income attributable to The Carlyle Group L.P. of $71 million and $104 million, or $1.17 and $2.05 per common unit on a diluted basis, for Q4 2013 and 2013, respectively

Washington, DC – Global alternative asset manager The Carlyle Group L.P. (NASDAQ: CG) today reported its results for the full year and fourth quarter ended December 31, 2013.

Carlyle Co-CEO David M. Rubenstein said, “Carlyle experienced a strong year in 2013 across virtually every metric. We benefitted from an accelerating fundraising environment, we built out our Natural Resources platform and Solutions business, and we attracted industry leading management talent to the firm. Our fund and financial performance over the past year demonstrates the advantage of our long term focus, which benefits both our fund investors and unitholders.”

Carlyle Co-CEO William E. Conway, Jr. said, “Our fund investors profited from robust performance in our carry funds and strong risk adjusted returns in our hedge funds. We took advantage of a strong market backdrop to produce $17.4 billion in realized proceeds during 2013, and more than $60 billion over the past four years. Our unwavering focus on performance helped Carlyle produce $1.88 in distributions per unit for our common unitholders for 2013.”

U.S. GAAP results for Q4 2013 and 2013, respectively, included income before provision for income taxes of $714 million and $1.4 billion, and net income attributable to the common unitholders through The Carlyle Group L.P. of $71 million and $104 million, or net income per common unit of $1.17 and $2.05, on a diluted basis. Total balance sheet assets were $35.6 billion as of December 31, 2013.

Fourth Quarter Distribution
The Board of Directors has declared a quarterly distribution of $1.40 per common unit to holders of record at the close of business on March 3, 2014, payable on March 11, 2014.
Including the $1.40 per common unit distribution payable on March 11, 2014, the Board of Directors has declared $1.88 in aggregate distributions per common unit for the 2013 fiscal year, reflecting a 75% payout of $2.50 in full year after-tax Distributable Earnings per common unit.

The Carlyle Group Distribution Policy
As further discussed in its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, Carlyle currently anticipates that it will cause Carlyle Holdings to make quarterly distributions to its partners, including The Carlyle Group L.P.’s wholly owned subsidiaries, that will enable The Carlyle Group L.P. to pay a quarterly distribution of $0.16 per common unit for each of the first three quarters of each year, and, for the fourth quarter of each year, to pay a distribution of at least $0.16 per common unit, that, taken together with the prior quarterly distributions in respect of that year, represents its share, net of taxes and amounts payable under the tax receivable agreement, of Carlyle’s Distributable Earnings in excess of the amount determined by the General Partner to be necessary or appropriate to provide for the conduct of its business, to make appropriate investments in its business and its funds or to comply with applicable law or any of its financing agreements. Carlyle anticipates that the aggregate amount of its distributions for most years will be less than its Distributable Earnings for that year due to these funding requirements. The declaration and payment of any distributions is at the sole discretion of the General Partner, which may change the distribution policy at any time.

The Carlyle Engine
Carlyle evaluates the underlying performance of its business on four key metrics known as the Carlyle Engine: funds raised, equity invested, carry fund returns and realized proceeds for fund investors. The table below highlights the results of these metrics for Q4 2013 and the full years of 2013 and 2012.
During Q4 2013, Carlyle’s carry funds generated realized proceeds of $6.3 billion from 160 different investments across 38 carry funds, and deployed $2.2 billion of equity in 97 new or follow-on investments across 30 carry funds. For 2013, Carlyle realized proceeds of $17.4 billion and invested $8.2 billion.

Q4Q42012: $
14.0 bn2012: $
8.0 bnQ4Q42012: $
18.8 bn2012: 14%Note: Equity Invested and Realized Proceeds reflect carry funds only.Funds RaisedEquity InvestedCarry Fund Returns$3.8 billion$2.2 billion2013: $22.0 bn2013: $8.2 bnRealized Proceeds$6.3 billion6%2013: 20%2013: $17.4 bn Segment# of Investments# of Funds$ millions# of Investments# of Funds$ millionsCorporate Private Equity5619$5,2591813$923Global Market Strategies355$29483$383Real Assets7314$7747214$892Carlyle16038$6,3289730$2,197Corporate Private Equity9723$12,1915317$4,777Global Market Strategies626$1,048154$846Real Assets12616$4,11613917$2,534Carlyle27745$17,35620538$8,156Note: The columns may not sum as some investments cross segment lines, but are only counted one time for Carlyle results.Q42013Realized ProceedsEquity Invested

Carlyle All Segment Results
• Distributable Earnings (DE): $401 million for Q4 2013 and $840 million for 2013
o Pre-tax Distributable Earnings were $401 million for Q4 2013, or $1.18 per common unit on a post-tax basis. For 2013, pre-tax Distributable Earnings were $840 million, 22% higher than 2012, or $2.50 per common unit on a post-tax basis.
o Fee-Related Earnings1 were $39 million for Q4 2013 and declined 30% from $55 million in Q4 2012 due to $18 million in non-recurring proceeds received in Q4 2012 from an insurance settlement and higher interest costs associated with the senior notes offerings during 2013, partially offset by higher Fee-Earning Assets Under Management. Fee-Related Earnings were $152 million in 2013, down 11% compared with 2012.
o Realized Net Performance Fees were $357 million for Q4 2013, compared to $127 million in Q4 2012. Realized Net Performance Fees were positively impacted by exits and share sales in ARINC, Personal & Informatik, Allison Transmission, and The Nielsen Company. IPOs and share sales in Moncler Group, Commscope, CVC Brasil, and Numericable also had a positive impact. Realized Net Performance Fees were $677 million in 2013, 35% higher than 2012.
o Realized Investment Income/(Loss) was $6 million in Q4 2013 and $11 million in 2013.
• Economic Net Income (ENI): $576 million for Q4 2013 and $1.3 billion for 2013
o Economic Net Income was $576 million for Q4 2013 and $1.3 billion in 2013, up 79% from $736 million in 2012. On a post-tax basis, Carlyle generated ENI per Adjusted Unit of $1.64 for Q4 2013 and $3.55 for 2013.
o Q4 2013 ENI was positively impacted by appreciation of 6% in Carlyle’s carry fund portfolio. Corporate Private Equity carry funds were up 9%, Global Market Strategies carry funds increased 10%, and Real Assets carry funds declined 1% compared to the end of Q3 2013. Carry fund appreciation was 20% for 2013, compared to 14% for 2012.
o During Q4 2013, seven funds moved into an accrued carry position, including Carlyle Asia Partners III and Carlyle Europe Partners III, the seven of which collectively increased net performance fees by more than $360 million during the quarter.
1 As of Q4 2013, the calculation of Fee-Related Earnings excludes the impact of all equity based compensation. All prior periods have been restated to conform to this presentation.
The Carlyle Group L.P. – All Segments2013$ in millions, except where notedQ4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 13 – Q4 13QoQYoYYTDRevenues5058525086151,3943,369127%176%65%Expenses3234583524208182,04995%153%57%Economic Net Income1823941561955761,320196%216%79%Fee-Related Earnings5539314439152(12%)(30%)(11%)Net Performance Fees1323551231575921,226277%349%134%Realized Net Performance Fees12714211861357677482%180%35%Distributable Earnings188171163105401840283%113%22%Total Assets Under Management ($ in billions)170.2176.3180.4185.0188.82%11%11%Fee-Earning Assets Under Management ($ in billions)123.1122.9132.0137.9139.91%14%14%Note: Totals may not sum due to rounding.Period% Change
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Assets Under Management and Remaining Fair Value of Capital
• Total Assets Under Management: $188.8 billion as of Q4 2013 (+11% in 2013)
o Major drivers of change versus Q3 2013: Appreciation (+5.9 billion), new capital commitments (+$3.2 billion), acquisitions (+$2.2 billion), partially offset by net distributions (-$7.5 billion), changes in CLO collateral balances (-$0.4 billion) and net hedge fund redemptions (-$0.3 billion).
o Total Dry Powder of $52.0 billion as of Q4 2013, comprised of $24.7 billion in Corporate Private Equity, $1.5 billion in Global Market Strategies, $8.8 billion in Real Assets and $17.1 billion in Solutions.
• Fee-Earning Assets Under Management: $139.9 billion as of Q4 2013 (+14% in 2013)
o Major drivers of change versus Q3 2013: Asset inflows including commitments (+$4.2 billion), acquisitions (+$2.2 billion), foreign exchange/other (+$0.9 billion), and market appreciation (+$0.2 billion), partially offset by net distributions and outflows (-$4.6 billion), changes in CLO collateral balances (-$0.7 billion) and net hedge fund redemptions (-$0.2 billion).
o During Q4 2013, Fee-Earning AUM was positively impacted by the addition of new commitments in Carlyle’s latest vintage U.S., Europe, and Asia buyout funds, the pricing of a new CLO, fundraising across the energy platform, acquisitions, and other activities.
• Remaining Fair Value of Capital (carry funds only) as of Q4 2013: $63.0 billion
o Current Unrealized Multiple of Invested Capital (MOIC): 1.3x.
o Remaining fair value of capital in the ground in investments made in 2009 or earlier: 42% of total fair value.
o AUM in-carry ratio as of the end of Q4 2013: 80%2.
2 AUM in-carry ratio is calculated as the percentage of fair value of capital that is in carry funds in an accrued carry position divided by total AUM in those funds, excluding dry powder.
Assets Under Management ($ billion)Remaining Fair Value (1)(1) Fair value of remaining carry fund capital in the ground, by vintage. Totals may not sum due to rounding.Data as of December 30, 2013.$64.9$43.0$35.5$33.4$38.7$28.4$49.8$35.1Total AUMFee-EarningAUMSolutionsRAGMSCPE$188.8$139.9Pre-2008; 27%2008; 10%2009; 5%2010; 14%2011; 20%2012; 9%2013; 12%Various; 3%$63 billion71%29%PrivatePublic
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Non-GAAP Operating Results
Carlyle’s non-GAAP results for Q4 2013 are provided in the table below:
Carlyle Group Summary$ in millions, except unit and per unit amountsEconomic Net incomeQ4 2013Economic Net Income (pre-tax)575.9$ Less: Provision for income taxes (1)55.9Economic Net Income, After Taxes520.0$ Fully diluted units (in millions)317.3Economic Net Income, After Taxes per Adjusted Unit1.64$ Distributable EarningsDistributable Earnings401.3$ Less: Estimated foreign, state, and local taxes (2)22.2 Distributable Earnings, After Taxes379.1$ Allocating Distributable Earnings for only public unitholders of The Carlyle Group L.P.Distributable Earnings to The Carlyle Group L.P.61.0$ Less: Estimated current corporate income taxes (3)1.8 Distributable Earnings to The Carlyle Group L.P. net of corporate income taxes59.2$ Units in public float (in millions)(4)50.3 Distributable Earnings, net, per The Carlyle Group L.P. common unit outstanding1.18$ (1) Represents the implied provision for income taxes that was calculated using a similar methodology applied in calculating the tax provision for The Carlyle Group L.P., without any reduction for noncontrolling interests. (2) Represents the implied provision for current income taxes that was calculated using a similar methodology applied in calculating the current tax provision for The Carlyle Group L.P., without any reduction for noncontrolling interests.(3) Represents current corporate income taxes payable upon distributable earnings allocated to Carlyle Holdings I GP Inc. and estimated current Tax Receivable Agreement payments owed.(4) Includes 938,759 common units issued in February 2014 in connection with the closing of the Diversified Global AssetManagement acquisition and the vesting of deferred restricted common units. These newly issued units areincluded in this calculation because they will participate in the unitholder distribution that will be paid in March 2014.
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Corporate Private Equity (CPE)
• Distributable Earnings (DE): $286 million for Q4 2013 and $538 million for 2013. The following components impacted Distributable Earnings in Q4 2013 and 2013:
o Fee-Related Earnings were $4 million in Q4 2013 and $9 million for 2013, compared to $19 million in Q4 2012 and $63 million for 2012, with the decline driven by higher fundraising costs for buyout funds, higher allocated interest costs, and the allocation of proceeds received in Q4 2012 from an insurance settlement.
o Realized Net Performance Fees were $271 million for Q4 2013 and $513 million in 2013, compared to $54 million for Q4 2012 and $335 million in 2012.
• Economic Net Income (ENI): $549 million for Q4 2013 and $1.1 billion for 2013
o Economic Net Income of $549 million for Q4 2013 and $1.1 billion in 2013, compared to $122 million for Q4 2012 and $479 million in 2012. The significant increase in ENI in Q4 2013 relative to prior periods was driven by five significant funds moving into an accrued carry position during the quarter.
o CPE carry fund valuations increased 9% in Q4 2013 and 30% in 2013, compared with 5% in Q4 2012 and 16% in 2012.
o Net Performance Fees of $535 million for Q4 2013 and $1.0 billion for 2013, compared to $100 million for Q4 2012 and $394 million in 2012.
• Total Assets Under Management (AUM): $64.9 billion as of Q4 2013
o Total AUM increased 22% to $64.9 billion from $53.3 billion as of Q4 2012.
o Funds Raised of $11.8 billion in 2013 were driven by the final closing in our latest vintage U.S. buyout fund, and additional closings of our latest vintage Asia, Europe, and Japan buyout funds, and Sub Saharan Africa fund, and various co-investments.
o Fee-Earning Assets Under Management were $43.0 billion as of Q4 2013, up 27% from $33.8 billion as of Q4 2012, with the increase driven by $17.2 billion in inflows, and partially offset by $7.5 billion in outflows, including distributions and basis step downs.
Q4Q4Q4Q42012: $
7.8 bn2012: $
4.2 bn2012: $
12.1 bn2012: 16%Funds RaisedEquity InvestedRealized Proceeds$2.6 bn$5.3 bn$0.9 bnCarry Fund Returns9%2013: $4.8 bn2013: $11.8 bn2013: $12.2 bn2013: 30%Corporate Private Equity2013$ in millions, except where notedQ4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 13 – Q4 13QoQYoYYTDEconomic Net Income1222391061595491,054244%348%120%Fee-Related Earnings191(4)849(43%)(77%)(85%)Net Performance Fees1002351091475351,026264%438%160%Realized Net Performance Fees541118645271513510%402%53%Distributable Earnings741148454286538434%287%34%Total Assets Under Management ($ in billions)53.355.157.962.264.94%22%Fee-Earning Assets Under Management ($ in billions)33.833.238.541.943.03%27%Note: Totals may not sum due to rounding.Period% Change
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Global Market Strategies (GMS)
• Distributable Earnings (DE): $102 million for Q4 2013 and $214 million for 2013. The following components impacted Distributable Earnings in Q4 2013 and 2013:
o Fee-Related Earnings were $21 million in Q4 2013 and $86 million for 2013, compared to $31 million in Q4 2012 and $89 million in 2012. The Q4 2013 decline versus the same quarter last year was driven by lower transaction fees from investment exit activity, higher allocated interest costs during 2013, and the allocation of proceeds received in Q4 2012 from an insurance settlement.
o Realized Net Performance Fees were $79 million for Q4 2013 and $110 million in 2013, compared to $50 million for Q4 2012 and $66 million for 2012.
o Realized Investment Income was $1 million in Q4 2013 and $18 million in 2013.
• Economic Net Income (ENI): $67 million for Q4 2013 and $228 million for 2013
o Economic Net Income of $67 million for Q4 2013 and $228 million for 2013, compared to $59 million for Q4 2012 and $165 million for 2012.
o GMS carry fund valuations increased 10% in Q4 2013, compared with 5% appreciation in Q4 2012. The asset weighted hedge fund performance of our reported funds was 8.5% in 2013.
o Net Performance Fees of $43 million for Q4 2013 and $129 million for 2013, compared to $23 million for Q4 2012 and $53 million for 2012.
• Total Assets Under Management (AUM): $35.5 billion as of Q4 2013
o Total AUM of $35.5 billion as of Q4 2013 increased 9% versus Q4 2012, while Fee-Earning AUM of $33.4 billion increased 8% versus Q4 2012.
o Total hedge fund AUM was $14.1 billion as of Q4 2013.
o Carlyle closed six CLOs during 2013 totaling $3.1 billion in assets, including one new CLO during Q4 2013 totaling $408 million in assets.
o GMS carry fund AUM ended Q4 2013 at $3.8 billion.
o Total structured credit AUM ended Q4 2013 at $17.2 billion.
Q4Q4Q4Q42012: $
5.2 bn2012: $
0.6 bn2012: $
1.1 bn2012: 23%Note: Funds Raised excludes acquisitions, but includes hedge funds and CLOs. Equity Invested and Realized Proceeds are for carry funds only. Funds RaisedEquity InvestedRealized Proceeds10%Carry Fund Returns2013: $5.7 bn2013: $0.8 bn$0.5 bn$0.4 bn2013: $1.0 bn2013: 28%$0.3 bnGlobal Market Strategies2013$ in millions, except where notedQ4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 13 – Q4 13QoQYoYYTDEconomic Net Income59104471067228558%13%38%Fee-Related Earnings31252317218624%(32%)(3%)Net Performance Fees237325(12)43129468%86%141%Realized Net Performance Fees501411579110nm57%66%Distributable Earnings86414624102214321%18%27%Total Assets Under Management ($ in billions)32.533.134.735.435.50%9%Fee-Earning Assets Under Management ($ in billions)31.031.433.133.733.4(1%)8%Funds Raised, excluding hedge funds ($ in billions)1.21.31.51.10.74.7Hedge Fund Net Inflows ($ in billions)0.0(0.1)0.90.4(0.2)1.0Note: Totals may not sum due to rounding. Funds Raised excludes the impact of acquisitions.Period% Change
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Real Assets (RA)
• Distributable Earnings (DE): ($2) million for Q4 2013 and $46 million for 2013. The following components impacted Distributable Earnings in Q4 2013 and 2013:
o Fee-Related Earnings were $3 million in Q4 2013 and $25 million for 2013, compared to $0 in Q4 2012 and $4 million in 2012. The increase was primarily driven by earnings from our equity interest in NGP Energy Capital Management (which was only a partial period in Q4 2012), partially offset by increases in professional fees, fundraising costs for our latest vintage U.S. real estate fund, higher allocated interest costs during 2013, and the allocation of proceeds received in Q4 2012 from an insurance settlement.
o Realized Net Performance Fees were $1 million for Q4 2013 and $45 million for 2013, compared to $22 million for Q4 2012 and $99 million for 2012.
o Realized Investment Income/(Loss) of ($6) million during Q4 2013 and ($23) million for 2013, driven by losses in certain Latin American and European real estate investments.
• Economic Net Income/(Loss) (ENI): ($65) million for Q4 2013 and ($34) million for 2013
o Economic Net Income/(Loss) of ($65) million for Q4 2013 and ($34) million for 2013 compared to ($7) million for Q4 2012 and $67 million for 2012.
o Real Asset carry fund valuations declined 1% in Q4 2013 and increased 1% in 2013, compared to an increase of 1% in Q4 2012 and an increase of 9% in 2012.
o Net Performance Fees of ($3) million for Q4 2013 and $31 million for 2013, compared to $6 million for Q4 2012 and $69 million in 2012.
o Investment Income/(Loss) of ($64) million during Q4 2013 and ($85) million for 2013, driven by unrealized losses in certain Latin American and European real estate investments.
• Total Assets Under Management (AUM): $38.7 billion as of Q4 2013
o Total AUM of $38.7 billion declined 4% versus Q4 2012, driven by $5.2 billion in distributions, partially offset by $2.0 billion in new commitments and $1.6 billion in market appreciation.
o Fee-Earning AUM of $28.4 billion declined 3% versus Q4 2012, driven by $3.1 billion in outflows, including distributions, partially offset by $2.1 billion in inflows, including commitments.
Q4Q4Q4Q42012: $
0.3 bn2012: $
3.2 bn2012: $
5.5 bn2012: 9%Note: Funds Raised excludes acquisitions. Equity Invested and Realized Proceeds are for carry funds only.Realized ProceedsCarry Fund Returns2013: $2.0 bn2013: $2.5 bn$0.4 bn$0.9 bnFunds RaisedEquity Invested2013: $4.1 bn2013: 1%$0.8 bn-1%Real Assets2013$ in millions, except where notedQ4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 13 – Q4 13QoQYoYYTDEconomic Net Income (Loss)(7)42(11)0(65)(34)nmnmnmFee-Related Earnings0967325(59%)625%583%Net Performance Fees642(17)10(3)31nmnm(55%)Realized Net Performance Fees2216199145(90%)(96%)(55%)Distributable Earnings23122512(2)46nmnm(55%)Total Assets Under Management ($ in billions)40.240.339.839.038.7(1%)(4%)Fee-Earning Assets Under Management ($ in billions)29.329.428.728.528.4(0%)(3%)Note: Totals may not sum due to rounding.Period% Change
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Solutions
• Distributable Earnings (DE): $15 million for Q4 2013 and $42 million for 2013
o Fee-Related Earnings were $10 million for Q4 2013 and $32 million for 2013, compared to $5 million in Q4 2012 and $16 million in 2012.
o Realized Net Performance Fees were $5 million for Q4 2013 and $10 million for 2013, compared to $1 million in Q4 2012 and $2 million in 2012.
o The increases were primarily due to the acquisition of the remaining interest in AlpInvest as well as a partial quarter benefit from the acquisition of Metropolitan Real Estate Equity Management.
• Economic Net Income (ENI): $26 million for Q4 2013 and $73 million for 2013, compared to $8 million in Q4 2012 and $24 million for 2012.
• Total Assets Under Management (AUM): $49.8 billion as of Q4 2013
o Total AUM of $49.8 billion was up 13% compared to Q4 2012, driven by $4.7 billion in commitments, $2.1 billion in acquisitions, and $6.0 billion in market appreciation, partially offset by $8.1 billion in distributions.
o Fee-Earning AUM of $35.1 billion increased 21% versus Q4 2012, with the increase primarily driven by $7.6 billion in inflows and commitments, $2.2 billion in acquisitions, and partially offset by $5.5 billion in outflows, including distributions, and fee basis step downs.
• Solutions completed the acquisition of Metropolitan Real Estate Equity Management in November of 2013. As of December 31, 2013, Metropolitan advised 16 fund of funds vehicles totaling, in the aggregate, approximately $2.0 billion in AUM. Solutions also acquired Diversified Global Asset Management (DGAM) in February of 2014, which will be reflected in our Q1 2014 results, and which had $6.6 billion in managed and advised assets as of December 31, 2013.
Solutions2013$ in millions, except where notedQ4 2012Q1 2013Q2 2013Q3 2013 (1)Q4 2013Q1 13 – Q4 13QoQYoYYTDEconomic Net Income89132526737%245%198%Fee-Related Earnings536121032(18%)115%103%Net Performance Fees36712164133%466%381%Realized Net Performance Fees111351071%430%467%Distributable Earnings6481515420%170%140%Total Assets Under Management ($ in billions)44.147.848.048.449.83%13%Fee-Earning Assets Under Management ($ in billions)28.928.931.833.735.14%21%Note: Totals may not sum due to rounding.(1) – During Q3 2013, Carlyle acquired the remaining 40% interest in AlpInvest. As such, amounts since the acquisition represent 100% of the financial results of AlpInvest. Prior to Q3 2013, amounts represent Carlyle’s 60% economic interest in AlpInvest.Period% Change
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Balance Sheet & Equity Capital Highlights
The amounts presented below exclude the effect of U.S. GAAP consolidation eliminations on investments and accrued performance fees, as well as cash and debt associated with Carlyle’s consolidated funds and consolidated real estate VIE. All data is as of December 31, 2013.
• Cash and Cash Equivalents of $967 million.
• On-balance sheet investments attributable to unitholders of $253 million, excluding the equity investment by Carlyle in NGP Energy Capital Management.
• Net Accrued Performance Fees attributable to unitholders of $1.8 billion. These performance fees are comprised of Gross Accrued Performance Fees of $3.7 billion less $50 million in accrued giveback obligation, $1.7 billion in accrued performance fee compensation and non-controlling interest, and $0.2 billion of net accrued performance fees realized in December 2013 and collected in January 2014.
• Loans payable and senior notes totaling $941 million.
Carlyle initiated an annual equity compensation program for its partners and employees at the end of 2013, and made an equity grant as part of the compensation program on February 1, 2014. The grant resulted in the issuance of 5.6 million new deferred restricted common units (“DRUs”) with the majority vesting over 3.5 years. The gross dilution from the equity grant is 1.8%. Commencing in Q1 2014, the dilutive effect of this DRU grant will be reflected in our GAAP and ENI per-unit results during their vesting period. However, the DRUs granted will not impact the Distributable Earnings-per-unit results until the DRUs vest, which principally will commence in Q3 2015.
Separately, common units issued in connection with the DGAM acquisition of approximately 0.7 million units (approximately $22.1 million) and vesting of prior-year DRU grants increased our common unit count by approximately 0.9 million as of February 3, 2014. Prior year DRU grants, including grants made at the time of our IPO that will vest in 2014, will add 3.6 million units to our Distributable Earnings unit count throughout the year, with the majority vesting on May 2, 2014.
Starting with our year-end 2013 results, we have removed equity compensation expense from both Fee-Related Earnings and Distributable Earnings, as these measures closely represent cash earnings generation. Because Economic Net Income presents cash and non-cash measures, our equity compensation expenses are included in our Economic Net Income results as a separately disclosed expense item.
Conference Call
Carlyle will host a conference call at 8:30 a.m. EST on Wednesday, February 19, 2014 to announce and discuss financial results for Q4 2013 and 2013.
Analysts and institutional investors may listen to the call by dialing +1-800-850-2903 (international +1-253-237-1169) and mentioning “Carlyle Group Fourth Quarter 2013 Earnings Conference Call.” The conference call will be webcast simultaneously to the public through a link on the investor relations
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section of the Carlyle web site at ir.carlyle.com. An archived replay of the webcast will be available soon after the live call.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with approximately $189 billion of assets under management across 118 funds and 100 fund of funds vehicles as of December 31, 2013. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,500 people in 34 offices across six continents.
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