The Carlyle Group LP, one of the country's largest private-equity firms, reported a slight rise in quarterly profits on Thursday, mostly because of a 7 percent gain in the value of its investments.
The Washington-based private equity fund reported economic net income of $394 million in the three months ending March 31, up from $392 million the year before.
After taxes were taken out, Carlyle's net income worked out to $1.02 per share. That beat analysts' estimates of 94 cents, according to FactSet. Carlyle became a public company last May, so it didn't provide prior year per-share numbers.
Distributable earnings, which reflect what Carlyle can actually pay to investors, dropped 6 percent to $168 million.
Carlyle's revenue of $1.15 billion was 3 percent higher than the same period the year before. Revenue from fund management fees slipped 1 percent to $231.4 million, while total performance fees inched up less than 1 percent to $642.4 million.
Revenue topped the $797 million analysts predicted.
Big investors continued to hand money over to Carlyle: The firm raised $4.9 billion in the first quarter.
Total assets under management rose to $176.3 billion, up 11 percent from the prior year. That increase came from appreciating investments and new money from investors. Investors' withdrawals and fluctuations in foreign currencies offset the gains.
The firm said it had total "dry powder," money ready to be used for acquisitions or investments, of $46 billion.
Carlyle's shares fell 2.7 percent in midday trading, dropping 86 cents to $31.34. The stock has traded as high as $37.89 and as low as $20 over the past 52 weeks.
- Private Equity & Hedge Funds
- private equity fund