Carlyle buyout funds grow 7% in 2012

The listed private equity firm’s buyout, growth capital, energy and real estate funds all increased in value during the first six months of 2012.

The Carlyle Group’s “carry funds” have had a strong first half of 2012.
The listed firm’s buyout and growth capital funds have increased in value by 7 percent and 5 percent respectively through the second quarter of the year, slightly below Carlyle’s overall carry fund growth, which increased by 8 percent during the first six months of 2012.

The firm’s carry funds – which comprise roughly half of its total assets – include vehicles that Carlyle advises as well as its buyout funds, growth capital funds, real asset funds and distressed debt and mezzanine funds but excludes structured credit funds, hedge funds and fund of funds vehicles. The firm’s real estate funds and energy funds grew by 6 percent and 9 percent, respectively.

Despite the six month increases in fund valuations, Carlyle’s buyout funds decreased in value by 2 percent during the second quarter of 2012 and its growth capital funds decreased by 2 percent during the past 12 months. The firm declined to comment on the cause of its negative fund valuations.

Carlyle’s strongest performing group of assets so far this year has been its credit business, known as global market strategies, which grew 15 percent through the second quarter. The credit division includes structured finance, collateralised loan obligations and hedge funds and is run by managing director and head of global market strategies Michael Petrick.

Carlyle is not required to report its mid-year results publicly. The fund valuation data through Q2 2012, which it sends to all its limited partners, is a separate report from the quarterly earnings that Carlyle is required to report. In May, the firm hired former Goldman Sachs senior research analyst Daniel Harris to head its public market investor relations department, a newly created position.

Carlyle has been a particularly active investor during the past two weeks. The firm’s private equity group invested in Italian fashion brand Light Force, which owns womenswear brand Twin Set Simona Barbieri, in a deal that is understood to be valued in the €250 million to €300 million range. Carlyle made the investment from its €5.3 billion Carlyle European Partners III fund.

Last week, the firm reached a deal with Sunoco to form a joint venture called Philadelphia Energy Solutions, keeping an historic Philadelphia-area oil refinery open. The refinery – the oldest continuously operating facility on the east coast – was scheduled to close in August.

Carlyle’s real estate group has also made two investments so far this month, purchasing Texas-based Lakeway Resort and Spa and acquiring a controlling stake in China-based Mandarin Hotel Holdings.