William Blair Large Cap Growth Fund on Carlyle Group

Carlyle is an alternative asset manager with exposure to corporate private equity, real assets and credit. Shares declined on redemption concerns and a mixed earnings report, with fee-related and performance-related revenues below expectations even though capital raising remained strong. The fund maintained the position and expects capital raising to remain relatively stable over an intermediate horizon, with faster growth in credit, secondaries, co-investments and other non-corporate-private-equity areas. It views concerns about private equity and performance-related earnings as cyclical rather than structural, creating compelling long-term risk/reward.