Listed private equity firms enjoyed quite a third quarter this year, but that shouldn’t be much of a surprise.
Earlier this year, Apollo chief Leon Black told an audience in Los Angeles that exit opportunities for private equity investments were “almost biblical. There is a time to reap and there’s a time to sow,” adding, almost unnecessarily, that Apollo was reaping. And by the looks of their third quarter results, they’ve reaped quite a bit. The firm reported $192.5 million of economic net income (ENI) (versus $82.8 million from the same period last year) and a 59% spike in revenues. Quarterly profits more than doubled in the third quarter.
Apollo wasn’t the only success story in the PE universe in the third quarter. Oaktree Capital Management ramped up profits by about 70% on the strength of $42.9 million of ENI, up from $25.2 million from 3Q 2012. KKR beat analyst expectations by posting a 20% gain in profits for the third quarter thanks to a sizeable jump in its quarterly ENI, up to $613.7 million in 3Q 2013 compared to $509.9 million in 3Q 2012. KKR’s private equity portfolio did much of the heavy lifting, rising 5.9%. Blackstone’s PE portfolio rose 4.2% in the third quarter, despite a 54% drop in quarterly revenue, while Carlyle was also in the black, posting a 5% gain in its PE division despite an 88% slide in overall profits.