Both The Carlyle Group and Apollo Global Management are
in the process of raising
massive new buyout funds. And while neither firm is having any trouble gathering LP commitments, the two industry giants have unveiled quite different financial results from the past three months with the release of their latest quarterly earnings reports.
Carlyle reported post-tax ENI of $274.8 million, a 139% YoY increase, which translates to about 81 cents per share. That’s nearly double the pre-release estimate of Thomson Reuters analysts. Apollo, meanwhile, logged ENI of $183.5 million, or about 46 cents per share, on par with analyst expectations. That figure marks a decline of about 54% compared to Apollo’s 2Q 2016.
Other highlights from Carlyle’s 2Q include $8.4 billion in gross capital raised across all asset classes, $6 billion in realized proceeds and $3.4 billion in invested capital. The firm’s buyout portfolio appreciated by 9% during 2Q, helping contribute to $1.6 billion in net accrued performance fees, and Carlyle’s corporate private equity division now has $54.3 billion in AUM.
Apollo’s private equity business logged record inflows of $23.8 billion during 2Q, driven by the firm’s ninth flagship buyout fund, which had $24.3 billion in committed capital as of the end of 2Q, per the firm’s earnings report. The PE unit realized $1.4 billion and deployed a further $723 million, with the firm’s private equity funds appreciating by 1.9% during the three-month span.
Separately, Apollo has agreed to sell CH2M Hill to Jacobs Engineering in a cash-and-stock transaction with an enterprise value of about $3.27 billion. With the sale, Apollo will exit an investment from 2015, when the firm acquired a minority stake in the provider of engineering services for $300 million at a reported valuation of around $2 billion.
In at least one way, that minority deal with CH2M was an uncharacteristic one for Apollo. Dating back to the start of 2011,
less than 4% of the firm’s completed private equity deals have been of the growth variety, according to the PitchBook Platform.
Want more? PitchBook subscribers can learn more about Apollo and Carlyle’s recent investment histories.