Alternative asset manager Carlyle reported first-quarter earnings below analyst expectations, as lower realised performance income offset continued fundraising momentum and asset monetisations, according to a report by Reuters.
Distributable earnings — a key measure of cash profits available for shareholder distributions — totalled $327m, or 89 cents per share, missing consensus forecasts of 94 cents per share.
The weaker result was driven in part by a sharp decline in realised net performance revenue, which fell 84% year-on-year to $20.5 million. Although Carlyle completed a number of asset sales during the quarter, the gains generated did not materially translate into distributable income.
Fee-related earnings declined 3.4% over the period, while transaction and portfolio advisory fees dropped 30% to $54.1m. The firm said market uncertainty and lower deal activity continued to weigh on capital markets-related revenues.
Chief executive Harvey Schwartz said the firm expects transaction fee revenue to improve in coming quarters and pointed to a substantial pipeline of assets available for future exits.
Carlyle is targeting an additional $200bn in fundraising by the end of 2028, alongside ambitions to increase fee-related earnings to $1.9bn.
Despite the earnings miss, the firm recorded strong investment realisations across its US buyout portfolio and attracted $13 billion in new inflows during the quarter, lifting total assets under management to $475bn.
Growth was led by the firm’s AlpInvest secondary investment business, where assets increased 5% quarter-on-quarter. However, private equity assets declined 3%, while credit assets edged down 1%.
Under GAAP accounting standards, Carlyle posted a net loss of $132.2m, largely driven by unrealised investment losses of $616.7m.
Shares in Carlyle fell nearly 3% in early trading following the results announcement and are down more than 14% year-to-date.
