Global investment firm Carlyle Group (NASDAQ: CG) reported a 5.6% increase in its first-quarter profit, driven by higher fees and a rise in assets under management (AUM) to a record level.
For the three months ending March 31, Carlyle posted distributable earnings of $455.4 million, or $1.14 per share, compared to $431.3 million, or $1.01 per share, for the same period last year.
Despite volatile markets, influenced by economic uncertainty and U.S. President Donald Trump’s tariff policies, Carlyle and other large asset managers have managed to navigate the challenges well. These firms benefit from significant management fees, providing stability even when selling assets is difficult. This enables them to take advantage of market disruptions and acquire assets at discounted prices.
Carlyle’s fee-related earnings climbed 17%, reaching a record $310.6 million. Fund management fees grew by 2%, while transaction and portfolio advisory fees, earned from arranging capital market deals, surged nearly three-fold.
The company’s AUM rose to $453 billion, a 6% increase from the previous year. This growth was driven by strong performance in Carlyle’s global credit segment and AlpInvest, its secondary investments unit.
Carlyle recorded $14.2 billion in inflows and deployed $11.1 billion, leaving $84 billion available for investment.
However, Carlyle’s stock has dropped nearly 21% so far this year. In comparison, its peers—Blackstone (NYSE: BX), KKR, and Apollo—have seen similar declines of 21%, 21.4%, and 21.7%, respectively.
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