Finance

Carlyle profits dip as market falls weigh on private fund managers


Carlyle Group reported lower second-quarter earnings on 28 July as the value of its investments appreciated less than a year ago.

The Washington-based alternative investments manager said it earned $245.4m, or 67 cents a share, in the three months ended 30 June. That is down from $925m, or $2.55 a share, in the same period last year.

Distributable earnings, or the portion of the firm’s profits that can be returned to investors, rose to $528.8m pretax, or $1.17 a share after taxes, from $395.4m, or 88 cents a share, in the second quarter last year. Revenue plunged 61% to about $1.05bn in the just-ended period.

Other alternative investments firms this year have seen profits decline from 2021, when private fund managers enjoyed a banner year because of rising asset values and record deal making and exits. This year, declines in public stock markets have weighed on the value of private fund managers’ investment portfolios, depressing firms’ profits.

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Carlyle’s carried-interest funds appreciated by 3% during the second quarter, compared with a decline of more than 16% for the S&P 500 index. The firm’s infrastructure and natural resources funds notched the best performance of any strategy, rising 13% on the quarter, while its corporate private equity portfolio was flat.

Carlyle said it raised $9.8bn in the second quarter, holding closings for its eighth US buyout fund and its fifth fund targeting European technology companies. The firm’s carried interest funds invested $6.7bn and recorded $8.5bn in sales.

Carlyle’s assets under management reached $376bn as of 30 June, the firm’s highest sum ever and 16% higher than at the end of March. The total was boosted by Carlyle’s new advisory agreement with reinsurer Fortitude Re, which added $48bn, Carlyle said.

Write to Chris Cumming at [email protected]

This article was published by Dow Jones Newswire, a fellow Dow Jones Group brand

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