Carlyle Group Inc. reported an enormous soar in fourth-quarter earnings, pushed by robust funding efficiency in a few of its companies and an upswing in fee-related income.
The Washington, D.C.-based agency reported internet earnings of $647.6 million, or $1.77 a share, within the interval. That compares with internet earnings of $518.8 million, or $1.44 a share, a yr earlier.
As with bigger rival Blackstone Inc., which reported outcomes final week, Carlyle’s real-estate enterprise led the way in which when it comes to efficiency, returning 11%, roughly in step with the S&P 500.
The agency’s private-equity portfolio appreciated by 6%.
Carlyle’s fourth-quarter distributable earnings, or the portion of revenue that might be returned to shareholders, got here in at a report $902.8 million, or $2.01 a share. That compares with $236.9 million, or 64 cents a share, a yr earlier.
The agency stated its board accepted a rise within the annual dividend to $1.30 per share, up from $1.
Beneath Chief Govt Kewsong Lee, Carlyle has been centered on increasing companies corresponding to credit score investing that generate regular administration charges, which have historically been extra extremely valued by buyers than extra unstable efficiency charges.
Price-related earnings climbed 20% to $174.5 million as fee-earning belongings beneath administration elevated by 14% to $193 billion. General belongings beneath administration rose to $301 billion, up 22% yr over yr.
Shares of Carlyle and its private-equity friends posted robust features in 2021 however have wavered in the course of the first few weeks of the yr as buyers fret about rising rates of interest, which increase the price of borrowing for leveraged buyouts and might hinder fast-growing portfolio firms.
Mr. Lee stated the agency’s growing reliance on administration charges ought to give buyers consolation.
“We’re getting into 2022 with power and a greater platform than we’ve ever had earlier than,” he informed The Wall Avenue Journal.
Carlyle, which set a aim final yr of elevating $130 billion in contemporary capital by 2024, raised $51.3 billion in 2021, together with $11.4 billion in the course of the fourth quarter.
This story has been revealed from a wire company feed with out modifications to the textual content
Supply: Live Mint