Carlyle results blow past
forecasts, aided by stock rally
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[May 03, 2017]
YORK (Reuters) - Private equity firm Carlyle Group LP posted first
quarter earnings that handily beat expectations on Wednesday, in line
with its peers, after a buoyant stock market lifted investment returns
across the industry.
The results are the latest sign that a rally in the S&P 500 to a record
high in the first quarter had served U.S. buyout firms well by
bolstering returns. Carlyle's peers Blackstone Group LP, KKR & Co LP and
Apollo Global Management LLC all reported first-quarter earnings that
Carlyle said it earned an economic net income (ENI) of $364.6 million
after taxes, more than six times what it earned a year earlier. That
translated into $1.09 of ENI per share after taxes, well above analyst
forecasts for 38 cents per share and the second-highest on record since
another bumper earnings since the fourth quarter of 2013, it said.
ENI is a crucial performance measure for U.S. private equity firms as it
accounts for unrealized gains or losses in investments.
The Washington D.C.-based firm said its private equity investments
appreciated 9 percent in the first three months, better than a 5.5
percent gain in the S&P 500 index in the same period.
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Passersby walk in front
of video monitors announcing the Carlyle Group's listing on the
NASDAQ market site in New York's Times Square after the opening bell
for trading, U.S. May 3, 2012. REUTERS/Keith Bedford/File Photo
Holdings in the energy sector, currently the biggest industry Carlyle is
invested in, has also fared well as oil prices steadied around $50, Carlyle
said. A source close to Carlyle but who declined to be named said Carlyle was
most invested in upstream production of energy at the moment.
Despite the strong results, Carlyle's distributable earnings, which show cash
available to pay dividends, fell to $55 million from $129 million a year ago.
That translated to distributable earnings of 13 cents a share, compared to 35
cents a year earlier.
(Reporting by Koh Gui Qing; Editing by Chizu Nomiyama, Bernard Orr)
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