Boosted by an increase in fund management fees, The Carlyle Group has posted significant YoY upticks in both earnings and economic net income. The buyout firm logged $44.6 million in 3Q 2017 earnings after recording just $800,000 in earnings during the same period last year, and it registered ENI of $192.3 million during 3Q, representing a 176% YoY increase. That figure equates to 56 cents per share, besting reported analyst estimates of 51 cents per share.
Carlyle reported $1.5 billion in net accrued performance fees over the past quarter, a 28% YoY bump, and its fund portfolio appreciated 3%. The firm invested $6.9 billion, raised $7.1 billion in new capital and realized $8.4 billion in proceeds. Its distributable earnings jumped to $254.5 million, or 75 cents per share, compared to $193.3 million in 2Q and $222.6 million in 3Q 2016. Overall, Carlyle had $174.4 billion AUM as of September 30, up from $169.8 billion at the end of 2Q. The firm's stock price dipped 2% on Tuesday, however, closing the day with a market cap of some $7.3 billion.
Carlyle said the major impacts on its 3Q results included the recovery of $74 million related to insurance commodities and its sale of Urbplan, a Brazilian land development company.
It's already been an eventful 4Q for the firm, with co-founders David Rubenstein and William Conway announcing last week they would step down as co-CEOs at the end of the year, giving way to firm veterans Glenn Youngkin and Kewsong Lee. In July, meanwhile, Bloomberg reported that Carlyle is in the midst of raising $15 billion for its latest US private equity fund.