By Chibuike Oguh

(Reuters) – Carlyle Group (NASDAQ) Inc saw a decrease of 41% in year-on-year distributable earnings for the first quarter on Thursday. Market volatility meant that investors were not able to cash out assets as quickly as they had hoped.

From $214.9million a year ago, distributable earnings, or cash that is available for shareholder dividends, grew to $303million to $303.3m. According to Refinitiv, this translated into after-tax distributable earnings per shared of 74cs. This was lower than the $1.01 average analyst estimate.

Kewsong, the Chief Executive Officer of Carlyle stated in an interview that volatility in markets caused by Russia’s War in Ukraine and inflation concerns slowed down dealmaking activity. Carlyle relies upon this to generate profit and cash out on assets.

Things get shoved out. Again, though, I try to see the larger picture. Many deals had been signed for us. Lee explained that the deals haven’t been closed.

Carlyle’s net accrued performance revenue, which represents investment profits not realized by investors, was a record $4.3Billion, an increase of 34% over the $3.2B a year ago.

The firm, based in Washington, D.C., stated that the growth was due to appreciation of U.S. assets, including natural resources and energy.

Carlyle spent $10.9B on new acquisitions in its portfolio, and earned $6.4B from asset sales. Fee-related earnings rose 42% to $183million, a record amount compared with $129 million last fiscal year.

Lee stated that focusing on FRE is really helping to accelerate it and grow it.

Carlyle reported that the private equity fund of its portfolio grew by 3% and real estate funds, by 10% respectively. Infrastructure and natural resources funds also grew by 19%. Blackstone (NYSE – Inc) said last week that it saw its real estate opportunistic assets rise by 10.3% and its private equity portfolio grow 2.8%.

Carlyle’s total asset management increased by 8% to $225 billion in the fourth quarter. Its acquisition of CBAM Partners’ $15 billion credit portfolio, high fundraising activity, and appreciation of funds are all factors that contributed to the increase. The unspent capital was $85 billion.

Carlyle has declared a quarterly dividend of $0.325 per Share, an increase from the $0.25 paid last year.