Credit earnings up at Carlyle in Q1

Carlyle has seen its credit income grow by more than 20 percent as it grows its investment team.

Carlyle Group has seen fund management fees from its Global Credit arm grow by 22 percent year-on-year to $59 million.

In its first-quarter earnings statement, the asset manager revealed total credit assets under management have reached $33.8 billion, up 15 percent compared with the first quarter of 2017. This was largely driven by $7.1 billion of fundraising.

Global Credit’s total AUM was accounted for by $20.8 billion of CLOs, $9.9 billion of carry funds and $3 billion of direct lending.

Q1 2018 fundraising was $800 million and included one new CLO and several CLO resets as well as additional fundraising for direct lending. This was double the $400 million raised in Q1 2017. Total fundraising over the previous year reached $7.1 billion, up from $4.4 billion in the previous period.

Fee earnings for the quarter were $9 million and reached $88 million for the past 12 months.

Fund management fees were $59 million compared to $48 million in Q1 2017. On a 12-month basis, fee income was $202 million, up 4.6 percent from $193 million in the previous 12-month period.

As a proportion of the group’s total assets under management, global credit fell back to 16.7 percent in Q1 2018, compared to 17 percent in Q4 2017 and 18.1 percent in Q1 2017. However, this was largely due to rapid expansion of corporate private equity assets.

In April, Carlyle hired three professionals to its credit opportunities team, including former Apollo Global Management managing director Taylor Boswell, stating debt was a “strategic priority”.