Carlyle Group sees valuations stagnate due to oil price drop

 
Michael Bow
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PRIVATE equity giant Carlyle Group followed in the footsteps of its industry rivals yesterday by reporting slower valuation rises weighed down by declining energy prices.

Fourth quarter profits fell by 68 per cent compared to the prior year after the value of the companies its owned slowed.

The firm, led by its trio of founders David Rubenstein, Bill Conway and Daniel D’Aniello said its portfolio of assets rose by one per cent in value – compared to six per cent during the same period last year.

The business, well known in the UK for its ownership of breakdown vehicle recovery service RAC, said economic net income – a common measure of profits – fell to $181m from $562m in the prior period.

The rout in the value of oil contributed to the drop alongside the lack of strong hedge fund performance fees to bulk up its revenue stream.

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