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Carlyle Group's 3Q net income falls 88 percent

The Associated Press

NEWS: Private equity firm The Carlyle Group LP said Wednesday that its net income fell 88 percent in the third-quarter as its costs roses.

DETAILS: Carlyle, which is based in New York, had its initial public offering in May 2012. Its portfolio includes more than 200 companies and 300 real estate investments.

Carlyle has a pipeline of companies that it expects to go public in the next two quarters, co-CEO William Conway Jr. said in a note to clients.

NUMBERS: Net income fell to $2.3 million, or 4 cents per common unit, in the quarter ending Sept. 30. That's down from $18.6 million, or 40 cents common unit, in the same quarter a year ago.

Its adjusted net income amounted to 51 cents per unit. Analysts expected earnings of 62 cents per unit, according to FactSet.

Total revenue rose 3.4 percent to $888.1 million from $858.5 million.

Its distributable earnings, which reflect what Carlyle can actually pay to investors, fell to $104.7 million from $206.9 million. On a per unit basis, it delivered distributable earnings of 32 cents per share.

Total assets under management rose 18 percent to $185 billion in the quarter from $157.4 million.

Expenses rose 16 percent from a year ago to $814.7 million.

STOCK: Up 40 cents, or 1.3 percent, to $30.53 in afternoon trading Wednesday.