NEW YORK (AP) — Carlyle Group, the private equity giant, reported a loss for the second quarter, hurt by volatile stock markets.
But Carlyle raised more money from investors and recorded higher earnings from the fees it charged.
Carlyle went public in the spring. Wednesday's report was its second as a public company.
Carlyle posted an economic net loss of $57 million, down sharply from economic net income of $237 million a year ago.
But Carlyle also said it raised $3.9 billion from investors in the second quarter, almost double the $2.1 billion it raised in the first quarter. And total assets under management jumped to $156 billion from $108 billion a year ago.
Private equity firms raise money from investors and then use that money to go invest in companies. Different firms have different strategies: Some, for example, look for companies that are in financial trouble because they think they can turn them around and sell them for a profit.
Wealthy individuals can invest with private equity firms. So can pension funds, foundations and other groups that manage money on behalf of small investors.
The private equity business in general is under close scrutiny this year because of the presidential election. Mitt Romney, the presumed Republican nominee, was an executive at the private equity firm Bain Capital. The Romney camp touts Bain as saving businesses and creating jobs; the Obama camp accuses Romney of slashing jobs at companies Bain bought.
Companies like Carlyle make money by charging fees for its services. Fee-related earnings rose slightly to $36 million from $31 million a year ago.
But Carlyle recorded a $107 million loss on performance fees in the latest quarter compared to a gain of $191 million a year ago.
The second quarter was tumultuous for the stock market, rocked by worries about Europe's debt crisis and an apparent slowdown in the U.S. economy. The Standard & Poor's 500 index lost 3 percent of its value in the second quarter, after a 12 percent gain in the first. That made it harder for many investment firms to make money. Carlyle's energy investments struggled, and investments in public companies tended to do worse than investments in private companies.
The stock went public in May at $22. Its shares fell 49 cents, or 2 percent, to $23.98 per share in afternoon trading Wednesday. They have traded since the IPO between $20 and $25.24.
