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Carlyle Group Reports Strong 4Q17 Results

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Estimates

Carlyle Group (CG) posted earnings per share (or EPS) of $1.01 in 4Q17, which was significantly above analysts’ estimates. Earnings exceeded estimates by $0.39. According to the management, 2017 has been a great year for the company helped by deployments, fundraising, performance, as well as realizations.

In 4Q17, Carlyle Group generated economic income amounting to $366 million thanks to the appreciation in carry funds. In 2017, the company garnered economic income of $1.3 billion, which reflects a substantial rise on a YoY basis. This rise was due to the 20% appreciation in the company’s carry funds.

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4Q17 revenues

Carlyle generated revenues of $971.1 million, which beat analyst expectations by $192.6 million. The company saw a substantial rise of 24% in total assets under management (or AUM) in 4Q17 on a YoY basis thanks to the fund appreciation as well as fundraising. However, the company witnessed realizations of $26 billion in 2017. In 4Q17, total AUM stood at $195 billion.

In 4Q17, Carlyle Group saw realizations of $8 billion. During the same period, its deployments amounted to $7.2 billion, while in 2017, they were $22 billion.

The Carlyle Group’s beta value stood at 1.7, and peers (XLF) KKR (KKR), CBRE (CBG), and Greenhill (GHL) have beta values of 1.9, 2.2, and 0.82, respectively.

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