Carlyle’s credit unit sees distributable earnings rise by 47pc in Q3
Carlyle Group’s credit business saw its distributable earnings grow by 47 per cent to $80.5m (£62m) in the third quarter, partially offsetting a subdued performance in private equity.
Overall, the alternative asset manager reported distributable earnings – profits that can be returned to shareholders – of $367m in the third quarter, broadly flat on last year.
The growth in profits in its credit and investment solutions arms were offset by a 19.4 per cent year-on-year decline in distributable earnings in its private equity business to $235.5m.
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M&A activity has been slow to recover which has impacted profits for private equity asset managers.
However, Carlyle’s overall fee-related earnings came in at a new quarterly record of $278m.
Total assets under management (AUM) increased by 17 per cent year-on-year to $447bn, of which credit – both liquid and private – accounted for $194bn.
“Carlyle’s record third-quarter results reflect the impact of strategic actions we have taken over the past 18 months,” said Harvey M. Schwartz, chief executive of Carlyle.
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“These actions, combined with a pick-up in investment activity across our platform, helped generate one of the best quarters of performance in the firm’s history, including record quarterly fee related earnings and FRE margin, and a nearly 30 per cent quarterly increase in our net accrued performance revenues. With this momentum, we are well-positioned to capture new opportunities in an evolving market and continue delivering strong returns and long-term growth for our clients and shareholders.”
Carlyle’s private credit AUM ticked up by $1bn to $28bn during the third quarter, as it noted particularly strong fundraising activity in its direct lending and opportunistic credit funds.
Its direct lending business originated $1.3bn in the third quarter and $3.9bn in the last 12 months, according to the report.
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