Buyout company Carlyle Group was undone by its non-buyout interests last quarter despite a boost from its $3bn (£1.86bn) sale of headphone maker Beats.
The Washington-based company, which has a range of interests from buyouts, hedge fund investments and property, said economic net income (ENI) fell 15 per cent to $166m in the third quarter.
ENI is a measure of profit used by private equity firms, which includes the value of their unsold portfolio companies.
Carlyle was laid low by its global markets strategies division, which co-invests in hedge funds, and its solutions business, which invests in rival private equity funds.
Global markets reported a profit of just $1m, down 88 per cent on last year, while its solution unit revealed a $5m loss.
Its traditional private equity did better, making $4.5bn from selling assets, including offloading its stake in Beats to Apple.
Assets under management weighed in at $202.6bn after attracting a further $6.5bn from investors over the quarter.
Overall, distributable earnings which can be returned to shareholders rose to $159m compared to a year ago.