Carlyle solutions AUM declines 14% year-on-year

Assets under management for The Carlyle Group’s solutions group declined 14 percent year-on-year, according to the firm’s first quarter earnings report.

Assets under management are $49.4 billion as of 31 March 2015, compared to $50.8 billion as of the end of 2014 and $57.2 billion as of 31 March 2014.

Carlyle said the decline in assets was a result of a negative foreign exchange impact of $9.6 billion, distributions of $10 billion and net redemptions of $1.1 billion. Those factors were partially offset by $2 billion in commitments and $11.3 billion in market appreciation.

The solutions group includes fund of funds manager AlpInvest Partners and Metropolitan Real Estate Equity Management. Active funds in the commitment period include AlpInvest Fund V.

The fund investments arm of Fund V is a 2012-vintage that is generating a -6 percent net internal rate of return and the co-investments arm, which is a 2014-vintage, is generating a -11 percent net IRR. Meanwhile, the secondary investments arm, a 2011-vintage €4 billion fund, is generating a 25 percent net IRR.

The solutions group has lost a number of executives this month. Managing director Vineet Budhraja left after two years and head of sales and marketing Neil Collins departed after just over one year.

AlpInvest has also lost managing director Tjarko Hektor and principal Wyley Scherr this year. The group has tried to bolster the team by hiring Noah Keys and Eric Hanno as principals from UBS and Partners Group respectively, but has no plans to replace Hektor.