Carlyle Group reported a 25.6% growth in second-quarter profit on Wednesday, helped by a pickup in fees as it grew its assets under management.
The investment firm’s distributable earnings, or profit that can be returned to shareholders, was $431 million, or 91 cents per share, for the three months ended June 30. That compares with $343.2 million or 78 cents per share, a year ago.
The company has been trying to advance its turnaround under CEO Harvey Schwartz, who has steered Carlyle deeper into high-growth segments such as private markets and international operations.
Last week, Carlyle named three of its longtime insiders as co-presidents, a new role and a step some analysts said could help reinforce investors’ confidence in the company.
Fee-related earnings grew 18.4% to $323.3 million in the quarter.
Fund management fees rose 16% and transaction and portfolio advisory fees, which Carlyle earns from arranging capital market deals for its portfolio companies and other clients, jumped 66%.
Assets under management at the Washington, D.C.-based company rose 7% to $465 billion, thanks to growth in AlpInvest, Carlyle’s unit for second-hand private equity funds.
The secondary market has given pension funds and other private equity investors a way to sell stakes in companies at a time when elevated interest rates, sweeping U.S. tariffs and geopolitical uncertainty have hampered dealmaking.
Still, market activity was accelerating, Schwartz said.
The company generated $13.4 billion of fresh capital. It deployed $14.6 billion and had $89 billion available for investment at the end of the quarter.
So far this year, Carlyle’s shares have jumped nearly 19% compared with an 8.3% growth in the Nasdaq composite index .IXIC.
Reuters
