Private equity firms like Carlyle have benefited from rising corporate valuations in the public and private markets, which have allowed them to cash out investments at higher profits.
Blackstone Group (NYSE:) Inc, the world’s largest private equity firm, also reported earlier this week that its distributable earnings more than doubled in the first quarter owing to a surge in asset sales.
Carlyle said it sold $ 6.4 billion worth of assets in the first quarter, allowing the firm post a net income of $ 869 million under generally accepted accounting principles (GAAP), compared with a $ 612 million loss a year earlier.
Its divestments included the sale of a majority stake in PA Consulting to Jacobs Engineering Group Inc (NYSE:), which valued the Britain-based advisory firm at 1.82 billion pounds ($ 2.54 billion). Carlyle also exited its entire shareholding in Japanese enterprise software developer WingArc1st via an initial public offering on the Tokyo Stock Exchange for about $ 175 million.
Carlyle said its credit funds appreciated by 8% in the first quarter. Its corporate private equity, real estate and natural resources funds rose 15%, 4%, and 7%, respectively.
Total asset management rose to $ 260 billion, up from $ 246 billion in the previous quarter owing to the appreciation of its funds. Carlyle closed the quarter with $ 75 billion in unspent capital and declared a quarterly dividend of 25 cents.
($ 1 = 0.7176 pounds)
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
By Chibuike Oguh
This post originally appeared on Stock Market News