CG Carlyle Group Inc

Carlyle Group LP on Wednesday said it swung to a third-quarter loss as its private-equity and energy funds lost value, the pace of deals slowed and it took a big charge related to losses at a hedge fund it owns.

The Washington, D.C., firm reported a loss of $84 million, or $1.11 a share, compared with a profit of $25 million, or 35 cents a share, in the same period last year.

Carlyle's first-quarter economic net income was a loss of $128 million, or 43 cents a share, down from gains of $166 million, or 55 cents a share, in the same period a year ago. Economic net income includes unrealized changes in the value of investments as well as cash earnings. The loss was worse than Wall Street expected. Analysts polled by Thomson Reuters forecast a loss of 36 cents a share.

Carlyle's funds that can earn the firm a slice of profits depreciated by 4% in the quarter, as its buyout funds lost 3% and its credit and hedge funds dropped 9%. The firm took a $162 million charge related to losses and investor redemptions at a credit hedge fund managed by its Claren Road Asset Management LLC.

Carlyle's newer energy and infrastructure funds fell 4%, while its older energy investments managed by Riverstone Holdings LLC plummeted 17%. Carlyle's real-estate funds were the lone risers, gaining 6%.

"Third quarter economic net income was largely driven by portfolio valuations on the final day of September, and since then global markets and valuations have moved higher," said David Rubenstein, Carlyle's co-founder and co-chief executive. "Our core business trends remain unaffected by these short-term movements."

The firm's distributable earnings, the portion of cash profits that can be paid to shareholders, rose to $244 million, from $157 million during last year's third quarter. Carlyle said it would pay out a 56-cent dividend for the quarter.

Carlyle raised $4.6 billion in new money during the quarter, down from $6.5 billion a year earlier. Meanwhile, it reaped $3.7 billion selling assets in the third quarter, compared with $4.5 billion during the same period last year. The firm invested $1.6 billion, about 57% less than it did during the third quarter a year earlier.

Carlyle said its assets under management at the end of September were $187.7 billion, down from $202.6 billion a year earlier and $192.8 billion at the end of June.

Carlyle's shares, which are down 30% on the year, closed down 0.6%, or 11 cents, at $19.26 on Tuesday. The stock lost 21.4% in 2014.

Write to Ryan Dezember at ryan.dezember@wsj.com

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(END) Dow Jones Newswires

October 28, 2015 07:35 ET (11:35 GMT)

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