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Mr Lee also said Carlyle’s investing activity “picked up sharply” throughout 2020, leading the company to invest $ 9 billion in the fourth quarter and $ 18 billion for the full year.
Carlyle’s exit pace “picked up” in 2020, making $ 7 billion for its fund investors in the fourth quarter and $ 21 billion for all of 2020, Lee said. Since the start of 2020, Carlyle has listed eight of his portfolio companies and holds a current value of more than $ 17 billion in government securities, he added.
Mr Lee said he expects the investment solutions business to grow, tapping into existing investors in his other two businesses.
Some 40% of investors in investment solutions are also limited partners in its private equity and lending franchises, he said.
“It is clear that the private financial markets have developed,” Mr. Lee said.
Investors large and small alike are looking for portfolio solutions through secondaries, co-investments and investments in new GP engagements, he said.
Investment Solutions help Carlyle executives introduce the rest of Carlyle to potential investors.
In addition, there are “very strong walls” between the investment solutions business and Carlyle’s other two businesses. Carlyle executives are ensuring that key information from LPs about their relationships with its other two companies does not pass through these walls, Lee said.
“This is a complementary strategy and not a substitution strategy,” said Lee. Investors use AlpInvest as a way to add to their alternative investment allocations, side by side with Carlyle funds, and to gain efficiency, for example through co-investments.
Carlyle said fourth quarter net income applicable to common shareholders was $ 518.8 million and $ 348.2 million for all of 2020. By comparison, Carlyle common shareholders recorded a net loss of $ 8.3 million in the fourth quarter of 2019 and net income of $ 345.3 million in full year 2019.
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