Carlyle Misses Earnings Target, Capital Markets Shine
Carlyle Group reported lower-than-expected distributable earnings in Q4, primarily driven by a decline in asset sale proceeds.
Key Highlights:
* $384 million profit available to shareholders
* EPS of 92 cents, 4 cents below estimates
* 24.1% drop in private equity earnings
* Realized performance revenue fell 4.7%
Despite missing earnings, Carlyle met its financial targets for 2023. CEO Harvey Schwartz has prioritized margin growth and performance by restructuring leadership and compensation models.
Capital Markets Strength:
* Record fee-related earnings of $287.4 million (13% increase)
* Assets under management rose 4% to $441 billion
* Inflows of $14.2 billion, driven by credit business
* Transaction and portfolio advisory fees more than doubled to $80.6 million
Carlyle's capital markets business has been a key focus area since Schwartz's appointment. Both corporate private equity and real estate funds saw 1% growth, while global credit funds gained 3%.
Carlyle has executed several notable exits in recent months, including StandardAero and Rigaku IPOs and the sale of Forgital.