Carlyle increased distributable earnings 17% as exits accelerated, though fee earnings slipped and markdowns in a flagship buyout fund caused a small GAAP loss. CEO Harvey Schwartz highlighted strong Distributable Earnings per share and near-$100 billion in distributions since early 2024.
Carry funds generated $8.8bn of realised proceeds in the quarter and $39.6bn over the past 12 months, up 23% year‑over‑year. Notable exits in Global Private Equity included Rigaku from Carlyle’s Japan buyout funds, Tescan from its European technology funds, and Camino Natural Resources and Varo Preem from its energy business. Carried interest came primarily from the second US equity opportunities fund, the fourth Japan buyout fund, NGP’s eleventh energy fund, and the first international energy fund.
Despite the earnings lift, fee earnings fell and markdowns in a flagship buyout fund pushed the firm to a small GAAP loss. The performance underscores Carlyle’s focus on returning capital to investors while navigating market volatility and positioning for future growth. Analysts note that continued strong exit activity will be key to sustaining this momentum.
Source: PE Insights · Summarized by HeadlinesBriefing