Blackstone’s Deployments in 2Q17 Exceeded Apollo, Carlyle, and KKR
2Q17 results overview
n 2Q17, alternative asset managers (XLF) Carlyle Group (CG) and KKR & Co. (KKR) reported earnings per share (or EPS) of $0.59 and $0.89, respectively. These EPS results beat Wall Street analysts’ EPS estimates. The expected 2Q17 EPS of Carlyle and KKR stood at $0.41 and $0.67, respectively.
However, Blackstone (BX) and Apollo Global Management (APO) posted EPS of $0.59 and $0.46, respectively, which missed analysts’ estimates. Blackstone’s and Apollo’s expected EPS for 2Q17 stood at $0.62 and $0.49, respectively.
Interested in APO? Don't miss the next report.
Receive e-mail alerts for new research on APO
Carlyle Group beat analysts’ estimates on the back of significant appreciation of 5% in the company’s carry fund portfolio in 2Q17. Carlyle Group also posted net performance fees of $299 million in 2Q17.
KKR’s 2Q17 performance income of $564 million resulted from exits implemented by the company. These exits led to the generation of realized carried interest amounting to $265 million in 2Q17.
Alternative asset managers have made significant deployments in 2Q17. Blackstone (BX) made deployments totaling $8.4 billion in 2Q17, which is higher than its peers. During the same period, Apollo, Carlyle, and KKR deployed $2.6 billion, $3.4 billion, and $4.9 billion, respectively.
The asset management industry is expected to witness a healthy investment environment in 2H17, which could lead to an increase in deployments by asset managers. In 2Q17, Blackstone, Apollo, Carlyle, and KKR deployed $4.2 billion, $0.7 billion, $1.4 billion, and $3.6 billion, respectively, in their private equity divisions.