Carlyle's third-quarter profit exceeds expectations, boosted by a rebound in trading volumes

Reuters, November 5 - Carlyle Group (CG.O) reported third-quarter profits on Thursday that exceeded market expectations, as the asset manager realized more private equity investments and returned cash to investors.

According to forecast data compiled by London Stock Exchange Group (LSEG), in the three months ended September 30, distributable earnings (the cash available for paying dividends to shareholders) reached $1.12 per share, surpassing the expected $1.

In recent years, the traditional private equity model—buying and selling companies—has been hampered by rising interest rates, but Carlyle and some of its peers have accelerated their pace of investment exits and returned cash to investors.

Carlyle CEO Harvey Schwartz stated that the company is well-prepared to accelerate growth over the coming years. He noted that the firm is currently in the early stages of a robust fundraising cycle, and that assets under management not yet generating management fees are nearing historic highs.

Realized net performance revenues, reflecting Carlyle’s share of profits from investment exits, surged to $99.8 million this quarter from $19.1 million in the same period a year earlier.

Major deals completed by Carlyle this quarter included the sale of a 27% stake in Japanese X-ray inspection equipment manufacturer Rigaku, and the sale of electron microscope manufacturer Tescan Group.

Schwartz said that since the beginning of 2024, Carlyle has returned nearly $100 billion in capital to investors.

During the reporting period, assets under management increased by 1% to $479 billion, while uninvested capital grew by 5% to $94 billion.

Net fund inflows for the quarter totaled $10.8 billion, mainly driven by credit businesses. This increase was supported by the first close of Carlyle’s latest opportunistic credit fund, as well as capital raised for its aviation business.

Carlyle deployed $11 billion in capital, mainly focusing on credit and private equity business areas. Noteworthy deals included the acquisition of Korean household and healthcare equipment leasing platform Chung Ho Group and hardware encryption company Secturion Systems.

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