Carlyle’s 41% rise in first-quarter earnings beats estimates

The Carlyle Group logo is displayed at the company’s office in Tokyo, Japan October 17, 2018. REUTERS/Issei Kato/File Photo

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April 28 (Reuters) – Carlyle Group Inc (CG.O) on Thursday reported a 41% year-on-year increase in first-quarter distributable profit as market volatility prevented the private equity firm from withdrawing money. money. active as much as some analysts had expected.

Distributable income, which represents cash available to pay dividends to shareholders, rose to $303 million from $214.9 million a year earlier. That translated into after-tax distributable earnings per share of 74 cents, which missed analysts’ average estimate of $1.01 per share, according to financial data provider Refinitiv.

Chief executive Kewsong Lee said in an interview that market volatility fueled by Russia’s war in Ukraine and inflation concerns have slowed trading activity Carlyle relies on to cash in. assets and generate profits.

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“Things are pushed back. But again, I’m focusing on the big picture. A lot of deals have been signed for us. They’re just not done,” Lee said.

Carlyle said its accrued net performance income, representing unrealized investment profits, hit a record $4.3 billion, up 34% from $3.2 billion. dollars from the previous year.

That growth was driven by appreciation in its assets in natural resources, energy, U.S. real estate and some buyout funds, the Washington, DC-based company said.

During the quarter, Carlyle spent $10.9 billion on new acquisitions in its portfolio and generated $6.4 billion in asset sales. Its fee-related revenue (FRE) reached a record $183 million, up 42% from $129 million last year.

“The focus on FRE, real acceleration and growth is really paying off,” Lee said.

Carlyle said its private equity funds grew 3%; real estate funds grew by 10%; and infrastructure and natural resource funds rose 19%. Blackstone Inc (BX.N) said last week that its opportunistic real estate funds rose 10.3%, while its private equity portfolio gained 2.8%. Read more

Carlyle’s total asset management grew 8% to $325 billion in the quarter, primarily due to its acquisition of credit manager CBAM Partners’ $15 billion portfolio, strong fundraising activity funds and fund appreciation. Unspent capital was $85 billion.

Carlyle declared a quarterly dividend of $0.325 per share, up from $0.25 last year.

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Reporting by Chibuike Oguh in New York; Editing by Kim Coghill

Our standards: The Thomson Reuters Trust Principles.

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