The Carlyle Group‘s earnings rose less than 1 percent the first quarter, the private equity giant reported on Thursday. The small gain came largely thanks to a rise in the value of its investments.
The firm said that it earned $393.9 million in economic net income, compared with $392 million the same time last year. That amounts to $1.02 per share, exceeding the average analyst estimate of 94 cents a share, according to Standard & Poor’s Capital IQ.
Economic net income accounts for unrealized investment gains. Carlyle itself prefers to focus on distributable earnings, which track actual payouts to limited partners. But that measure fell 6 percent in the quarter, to $168 million, as the firm realized a $15 million loss on a Latin American real estate investment.
Carlyle’s first-quarter results fall short of what major rivals like the Blackstone Group, Kohlberg Kravis Roberts and Apollo Global Management have reported for their first quarters. Improving global markets and the continued availability of cheap debt have lifted the value of buyout firms’ holdings and opened the door to continued deal-making.
Other measures of Carlyle’s performance looked better. The firm raised $4.9 billion in the quarter, up 6.5 percent from a year ago. And its main carry funds, which pay out carried interest fees, appreciated by 7 percent, up from 4 percent last year.
The firm’s total assets under management rose 11 percent, to $176.3 billion.
“Our first quarter results continue to demonstrate strength in the Carlyle Engine,†David M. Rubenstein, one of the firm’s co-chief executives, said in a statement.
