William Blair Small-Mid Cap Core Fund on Carlyle Group

Carlyle is an alternative asset manager spanning corporate private equity, real assets and credit. The stock was pressured by redemption concerns across alternative managers and by weaker-than-expected fee-related earnings and performance-related revenues, even as capital raising remained strong. The fund believes Carlyle's capital raising should remain relatively stable over an intermediate horizon, with faster growth in credit, secondaries, co-investments and other non-corporate-private-equity areas. It sees current concerns around corporate private equity and performance-related earnings as cyclical rather than structural, leaving the long-term risk/reward compelling.