Carlyle Group Inc. reported its highest quarterly earnings in nearly four years, with distributable earnings rising 9.6% year-over-year to $472.3 million, or $1.07 per share on an after-tax basis. This significantly beat the average analyst estimate of 91 cents per share. The strong performance was attributed to a pick-up in private equity exits and increased fees, following a period where asset sales hadn't fully translated into shareholder gains.
Fee-related earnings, a key indicator of stable income, reached a record $357.7 million, an 11% increase from the previous year. Transaction and portfolio advisory fees more than doubled to $110.5 million, boosted by significant deals like the sale of Bermuda-based Vantage Group and Japanese lighting supplier Iwasaki Electric. The firm's total assets under management grew 4% year-over-year to a record $485 billion, with credit strategies attracting $5.8 billion and the AlpInvest secondaries business adding $4.5 billion.
Carlyle also secured $16.8 billion in inflows, including a $5 billion commitment to its next U.S. buyout fund. This quarter's results mirror improving trends seen by larger peers like KKR and Blackstone, who also reported better returns from cashing in on investments. The company distributed nearly $7 billion during the quarter and declared a quarterly dividend. CEO Harvey Schwartz highlighted that this was the strongest pre-tax distributable earnings quarter in almost four years, underscoring the power of Carlyle's diversified platform.
