Carlyle Group Defies Market Volatility with Record Profits
Global investment firm Carlyle Group surpassed first-quarter profit predictions, benefiting from increased management fees. Despite volatile markets, Carlyle's diversified portfolio ensured substantial earnings. The firm's distributable earnings rose 5.6%, while assets under management reached $453 billion, driven by its credit segment and secondary investments unit, AlpInvest.
Carlyle Group, a global investment firm, exceeded expectations for its first-quarter profits on Thursday, primarily due to increased management fees as the firm's assets under management achieved an all-time high.
Despite the market's volatility throughout the year, largely attributed to economic uncertainties and U.S. President Donald Trump's tariff policies, Carlyle and other large asset managers have managed to navigate the challenging environment effectively. Their extensive portfolio can yield substantial management fees, ensuring stability when opportunities for exits are limited, and allowing them to seize opportunities during market disruptions.
Carlyle's distributable earnings, reflecting the cash available to shareholders, rose by 5.6% to $455.4 million, or $1.14 per share, for the three-month period ending March 31, surpassing analyst projections of 95 cents per share according to LSEG. Meanwhile, fee-related earnings increased 17% to a record $310.6 million, with fund management fees rising by 2% and transaction and portfolio advisory fees tripling. The firm's assets under management grew to $453 billion, supported by the expansion of its global credit segment and AlpInvest, its secondary investments platform.
(With inputs from agencies.)
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