Good day, ladies and gentlemen, and welcome to The Carlyle Group First Quarter 2012 Conference Call. [Operator Instructions] As a reminder this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Daniel Harris, Head of Investor Relations. You may begin.

Thank you, and good morning. Welcome to Carlyle's First Quarter 2012 Earnings Call. My name is Dan Harris, and I'm the Head of Public Market Investor Relations at Carlyle. And with me on the call today, our Co-Chief Executive Officers, Bill Conway and David Rubenstein; and our Chief Financial Officer, Adena Friedman. If you have not received or seen the earnings release, which we published this morning detailing our first quarter results, it is available on the Investor Relations portion of our website at ir.carlyle.com or on Form 8-K filed with the Securities and Exchange Commission. This call is being webcast, and a replay will be available on our website immediately following the conclusion of today's call. While this is our first earnings call as a public entity, we were still a private company in the first quarter, thus included in our results are both GAAP, as well as pro forma results which assume we have been a public entity during the first quarter. Some housekeeping items before I hand it over to David. We will refer to certain non-GAAP financial measures in today's remarks including Distributable Earnings, Economic Net Income and fee-related earnings. These measures should not be considered in isolation from or as a substitute for measures prepared in accordance with Generally Accepted Accounting Principles. Reconciliations of these non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are included in our earnings release, which is available on the Investor Relations portion of our website. Additionally, we will report our pro forma results for the quarter, which reflect changes related to our IPO as if they had occurred prior to the period. We would like to remind everyone that any forward-looking statements provided today do not guarantee future performance and undue reliance should not be placed on them. These statements are based on current management expectations and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including those identified in the Risk Factor section of our registration statement on Form-S1 filed with the SEC and available on our website as such factors may be updated from time to time in our SEC filings. Carlyle assumes no obligation to update any forward-looking statements. Finally, given the proximity to the IPO and various quiet period restrictions, we will not be conducting a question-and-answer period today. With that, let me turn it over to David Rubenstein.

Good morning, and thank you for joining the Carlyle Group's first public earnings call as we present the results of 2012's first quarter which ended on March 31. We are pleased to provide you with the report on what was a very solid quarter for the firm and which is importantly consistent with our full year performance objectives. We appreciate the support of the many institutional and individual investors who subscribed for our units in the recent IPO, and we value as well the confidence expressed in us by those who have purchased the units since the IPO. We want all unitholders to know that we take our responsibilities as fiduciaries on behalf of unitholders very seriously. And consequently, we will in this and in all subsequent earnings calls do our best to provide as much transparency about our activities as competitive factors will permit. We also want our unitholders to know that we firmly believe Carlyle's status as a public company will strengthen our capabilities, and the results of that strengthening will, in due course, be increasingly apparent to our unitholders, as well as to our many fund investors, employees and professional relationships throughout the world. We did not take the decision to go public lightly nor do we take lightly the obligations we have assumed as the leaders of a public company. We trust that this will be apparent to all as we proceed to operate Carlyle as a public company. No doubt as a public company there will be times when we face challenges, just as there will be times when we see considerable opportunities. As we initiate today our long-term earnings call relationship with our unitholders and also with the analysts who cover us, we are pleased that the information we will be providing today is…

Thank you, David, and good morning. I'd like to focus on our investments, value creation and distribution activities across the firm. Before doing so, let me spend a few minutes on one of the tools we regularly use to inform our investment decisions. More specifically, Carlyle has more than 200 portfolio companies and more than 270 active real estate investments around the world, more than any other alternative investment firm. We track data from these companies on a monthly basis, and have selected approximately 2 dozen data series that are well synchronized with the business cycle or otherwise highly correlated with official government statistics. Importantly, we collect and analyze these data in real time, which gives us an edge in both our investment decisions and how we manage our portfolio. We call this data, Carlyle economic indicators. Let me provide a good example of the value of the proprietary economic indicators that we track. Last summer, when Congress was debating an increase in the debt ceiling, the markets, press, and a number of commentators started talking about a double-dip recession. We looked at key data from our portfolio companies: sales volumes, capital expenditures, order books, among others, and due to contraction, it's highly improbable in the near term. We concluded that the U.S. economy would continue to grow albeit slower than we would like. As a result, we not only made important investments within our funds, we also encouraged our portfolio companies to continue to focus on growth as opposed to hunkering down. Now with respect to Carlyle's investment performance, let me turn to the Carlyle engine to which David referred. As you know, we had a thrift year in 2011. We invested $11.3 billion in our carry funds, and our carry funds appreciated by 16%, and we distributed $18.8…

Thank you, Bill. Good morning, everyone, and let me again welcome you to our first quarterly conference call as a public entity. We intend to follow a similar format each quarter with an update on the environment from our Co-CEOs, and then I will walk you through the financial results for the quarter. As many of you know, we have 4 main segments, and I will focus on each during my remarks. For the quarter, on a pro forma basis, taking into consideration changes related to our IPO, Carlyle generated $189 million in Distributable Earnings or $0.57 per unit in after-tax Distributable Earnings, an Economic Net Income of $401 million or $1.10 per unit after tax. The primary differences between the pro forma and actual results for the quarter are: first, the split and the change in the split of the performance fees investment team from approximately 55% prior to the IPO to 45% after our internal reorganization in connection with the IPO; second, the repayment of debt with the IPO proceeds; and third, for our GAAP results only, the change in treatment of partner compensation as an expense as opposed to equity distributions, as well as the inclusion of one quarter of IPO-related equity compensation charges. Because Carlyle was not a public company during the first quarter of 2012, we will not have distributions to common unitholders for the period. In connection with our second quarter earnings announcement and consistent with our distribution policy, we will commence distribution to common unitholders on a prorated basis to reflect the partial quarter as a public company based on our May 2 pricing date. On an actual basis and not pro forma for the IPO, the Carlyle Group posted pretax Distributable Earnings of $179 million, which compares to $284 million in last…

Thank you, Adena, and thank you all for participating in our first quarter earnings call. As we now prepare to conclude this call, we want to leave you with 3 key takeaways from this quarter. First, we generated $0.57 in Distributable Earnings per unit, a great start to the year and importantly, consistent with our full year performance objectives. Second, the pace of our realizations to Carlyle fund investors remains healthy as we had $3.8 billion in realized proceeds during the first quarter. And lastly, our investment performance continues to be very solid with our carry funds appreciating 9% during the quarter. We have been and remain optimistic about our firm and the prospects that lie in front of us. We look forward to speaking with you again next quarter. And again, thank you very much for listening to this call. Good day.

Thank you. Ladies and gentlemen, this concludes the conference for today. You may all disconnect, and have a wonderful day.