Carlyle Group LP on Wednesday said its second-quarter profit
rose 55%, as it continued to sell stakes in the companies it owns.
But it saw a decline in another key profitability measure.
The Washington, D.C., firm reported profit of $31 million, or 34
cents a share, compared with $20 million, or 27 cents a share, in
the same period last year.
Carlyle's second-quarter economic net income was $180 million,
or 55 cents a share, down from $318 million, or 73 cents a share,
in the same period a year ago. The results for that profitability
measure, which includes unrealized gains as well as cash earnings,
narrowly beat Wall Street's expectations. Analysts polled by
Thomson Reuters forecast 54 cents a share.
Economic net income fell in Carlyle's private-equity unit, its
specialty investing and lending and hedge fund segments and its
real assets unit.
Carlyle's funds that can earn the firm a slice of profits
appreciated by 3% in the quarter, as its buyout and global market
strategies funds gained 5% and 2%, respectively. The firm's older
energy funds, which are managed by former partner Riverstone
Holdings LLC, lost 3% in the period as volatility in energy markets
and lower commodity prices continued to take a toll.
The firm's distributable earnings, the portion of profits that
can be paid to shareholders, rose to $386 million, from $324
million during last year's second quarter. The firm said it would
pay out an 89 cent dividend for the quarter, a multiple of the 16
cents it paid a year ago.
Carlyle raised $4.7 billion in new money during the quarter,
down from $7.4 billion a year earlier. Meanwhile, it reaped $5.8
billion selling assets in the second quarter, compared with $6.5
billion during the same period last year. The firm invested $1.6
billion, or 53% less, during the second quarter than it did a year
earlier, when it put $3.4 billion to work.
Carlyle said its assets under management at the end of June were
$192.8 billion, down from $202.7 billion a year earlier and up
slightly on the $192.7 billion it managed at the end of March.
Carlyle's shares, which are down 5.4% this year, closed up 0.1%,
or 3 cents, at $26.02 on Tuesday.
Write to Gillian Tan at gillian.tan@wsj.com
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