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WASHINGTON - On Friday, Private equity firm Carlyle Group (NASDAQ:CG) reported third-quarter earnings that fell short of analyst expectations as investment losses weighed heavily on revenue.
The company’s shares fell 2.70% in pre-market trading following the announcement.
The company posted adjusted earnings of $0.96 per share, missing analyst estimates of $1.01, while revenue plummeted to $332.7 million, far below the consensus forecast of $992.23 million. The dramatic revenue decline was primarily driven by investment losses of $519 million in the quarter, compared to investment income of $1.83 billion in the same period last year.
Despite the revenue shortfall, Carlyle reported total assets under management of $474 billion as of September 30, up 6% YoY, with fee-earning assets under management increasing by the same percentage to $332 billion. The firm generated $16.9 billion in inflows during the quarter.
"Our strong third quarter results demonstrate continued execution of our strategic growth plan," said CEO Harvey M. Schwartz. "We generated $17 billion of organic quarterly inflows, continued to scale strategic areas like Carlyle AlpInvest and Insurance Solutions, and raised significant capital across our Global Wealth platform."
Fee-related earnings rose 12% to $312 million compared to $278 million in Q3 2024, with the FRE margin improving to 48% from 47% a year earlier. However, realized net performance revenues declined sharply to $19.1 million from $90.6 million in the prior-year quarter.
The Board of Directors declared a quarterly dividend of $0.35 per share, payable on November 19 to shareholders of record as of November 10.
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