Carlyle Group’s credit score enterprise noticed its distributable earnings develop by 47 per cent to $80.5m (£62m) within the third quarter, partially offsetting a subdued efficiency in personal fairness.
General, the choice asset supervisor reported distributable earnings – earnings that may be returned to shareholders – of $367m within the third quarter, broadly flat on final yr.
The expansion in earnings in its credit score and funding options arms had been offset by a 19.4 per cent year-on-year decline in distributable earnings in its personal fairness enterprise to $235.5m.
Learn extra: Carlyle-backed agency launches personal credit score platform for leisure sector
M&A exercise has been sluggish to recuperate which has impacted earnings for personal fairness asset managers.
Nonetheless, Carlyle’s general fee-related earnings got here in at a brand new quarterly document of $278m.
Whole property beneath administration (AUM) elevated by 17 per cent year-on-year to $447bn, of which credit score – each liquid and personal – accounted for $194bn.
“Carlyle’s document third-quarter outcomes mirror the influence of strategic actions now we have taken over the previous 18 months,” stated Harvey M. Schwartz, chief government of Carlyle.
Learn extra: Carlyle and KKR purchase $10.1bn pupil mortgage portfolio
“These actions, mixed with a pick-up in funding exercise throughout our platform, helped generate the most effective quarters of efficiency within the agency’s historical past, together with document quarterly charge associated earnings and FRE margin, and an almost 30 per cent quarterly improve in our internet accrued efficiency revenues. With this momentum, we’re well-positioned to seize new alternatives in an evolving market and proceed delivering sturdy returns and long-term progress for our purchasers and shareholders.”
Carlyle’s personal credit score AUM ticked up by $1bn to $28bn throughout the third quarter, because it famous notably sturdy fundraising exercise in its direct lending and opportunistic credit score funds.
Its direct lending enterprise originated $1.3bn within the third quarter and $3.9bn within the final 12 months, in line with the report.
Learn extra: Carlyle and Goldman Sachs make investments $1.1bn in Apex Group’s PIK notes