Beats the estimate
Carlyle Group (CG) reported its 1Q15 earnings on April 29. The company managed to beat Wall Street analysts’ EPS (earnings per share) estimates of $0.70—its EPS was $0.80. The first quarter earnings were impacted by an adverse court judgment in a French tax court. The ruling negatively impacted its economic net income by $34 million. Excluding the impact of the judgment, distributable income and economic earnings in 1Q15 would have been $228 million and $307 million, respectively, or $0.67 and $0.91 per adjusted unit.
Carlyle Group raised $4.4 billion in new capital in the first quarter. This took the total assets under management to $192.7 billion.
Carlyle’s co-CEO—William E. Conway, Jr.—said in the company’s press release on April 29 that “The performance of our funds has been solid early in the year, with our carry funds up 6% in the first quarter and other products performing well. We have been active investors with 10 new Corporate Private Equity investments and 24 new Real Assets investments in the first quarter alone.”
Alternative investment giant
Carlyle Group advises investment funds and vehicles that invest across a range of asset classes, geographies, and investment strategies to generate returns for its investors or limited partners.
Alternative investment management is an active style of investing. It attempts to outperform the major indices, like the S&P 500 (SPX), instead of replicating returns as is the case in passive fund management. Active fund management generally requires a performance fee over and above a certain fixed fee for managing funds.
Among other companies in the asset management industry forming part of the Financial Select Sector SPDR Fund (XLF), Blackstone (BX) beat the estimates by 32%, KKR (KKR) beat the estimates by 17%, and BlackRock (BLK) beat the estimates by 8% in 1Q15. Apollo Global Management (APO) and Legg Mason (LM) haven’t announced their quarterly results yet.