Carlyle profits beat forecasts as private equity exits accelerate

Carlyle Group delivered stronger-than-anticipated third-quarter earnings, buoyed by a surge in private equity exits that drove realized investment gains and capital distributions, according to a Reuters report. The alternative asset manager reported distributable earnings of $1.12 per share for the three months ending September, surpassing analysts' expectations of $1.00.

Realized net performance revenue soared to $99.8 million from $19.1 million a year prior, signaling a rebound in investment monetizations after a prolonged downturn in private equity exits. Carlyle finalized the sale of electron microscope producer Tescan Group and divested a 27% stake in Japanese testing equipment firm Rigaku during the period.

The company is also anticipated to finalize nearly $6 billion in additional exits in the fourth quarter. Carlyle CEO Harvey Schwartz disclosed that the firm has returned nearly $100 billion to investors since the start of 2024. Capital inflows totaled $10.8 billion during the quarter, primarily fueled by credit strategies, while deployment reached $11 billion.

Carlyle forecasts at least $20 billion in inflows for the fourth quarter, supported by a reinsurance deal with Unum Group. However, fee-related earnings declined 6% to $293 million, underscoring ongoing challenges to recurring profitability.