The Carlyle Group has reported a 25.6% year-on-year rise in Q2 distributable earnings, signalling building momentum across its platform amid stronger fee-related revenue and successful portfolio exits.
Distributable earnings reached $431m, or $0.91 per share, outperforming analyst expectations of $0.89, according to LSEG consensus estimates. Shares in the firm rose 4.7% on the news.
Fee-related earnings rose 18.4% to $323.3m, driven by a 16% increase in fund management fees and a 66% surge in transaction and portfolio advisory fees. Assets under management climbed 7% to $465bn, supported by growth in Carlyle’s AlpInvest secondaries platform – a strategic focus under CEO Harvey Schwartz.
Carlyle raised $13.4bn in new capital and deployed $14.6bn in the quarter, ending the period with $89bn in dry powder. Secondary market activity, particularly through AlpInvest, continued to offer liquidity solutions for LPs amid ongoing challenges in traditional exits.
The firm also booked $5.1bn in exit proceeds, including notable disposals such as aerospace components manufacturer Forgital and NSM Insurance Group.
CFO John Redett said the firm now expects fee-related earnings to grow approximately 10% in 2025, up from its previous guidance of 6%. Redett was recently named Co-President alongside two other firm veterans, a move seen by analysts as reinforcing executive stability.
Despite broader private equity challenges – including a slower deal environment and macroeconomic uncertainty – Carlyle has outperformed, with shares up nearly 23% year-to-date, outpacing the Nasdaq Composite’s 8.6% gain over the same period.
Schwartz reaffirmed Carlyle’s strategic priorities around wealth distribution, global credit, insurance, and capital markets, while also welcoming recent US policy developments aimed at stimulating economic activity.
