Opportunistic credit boosts Carlyle balance sheet despite profit miss

Robust inflows into Carlyle Group’s third opportunistic credit fund helped to boost the company’s performance fees in the fourth quarter of the year.

However, the company’s distributable earnings missed market expectations, resulting in a 3.1 per cent fall in its share price in pre-market trading.

Carlyle’s profit miss stemmed from lower proceeds from asset sales, which led to a 24.1 per cent drop in earnings at the firm’s private equity business.

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The investment firm’s profit available to shareholders came in at $384m for the fourth quarter of 2024, and $1.5bn for the full year.

Fee-related earnings were $287m for the fourth quarter, and $1.1bn for the full year, while realised net performance revenues were $78m for the fourth quarter and $366m for the full year.

The firm reported that its total assets under management (AUM) grew by four per cent year-on-year to $441bn, boosted by inflows into its subsidiary AlpInvest’s secondaries business, as well as portfolio finance and private market funds.

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Carlyle’s global credit AUM increased by two per cent, driven by inflows across the segment, including the closing of 10 new collateralised loan obligations and its latest opportunistic credit fund.

“Carlyle delivered a strong 2024, meeting every financial target we set, including record fee related earnings and fee related earnings margin, and robust inflows,” said Carlyle’s chief executive Harvey M. Schwartz.

“As we enter 2025, we expect a high level of activity across our platform and remain focused on driving long-term shareholder value.”

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