Carlyle's second-quarter profit jumps on fee growth as AUM climbs
(Reuters) -Carlyle Group reported a 25.6% growth in second-quarter profit on Wednesday, helped by a pickup in fees as it grew its assets under management.
The investment firm's distributable earnings, or profit that can be returned to shareholders, was $431 million, or 91 cents per share, for the three months ended June 30. That compares with $343.2 million or 78 cents per share, a year ago.
The company has been trying to advance its turnaround under CEO Harvey Schwartz, who has steered Carlyle deeper into high-growth segments such as private markets and international operations.
Last week, Carlyle named three of its longtime insiders as co-presidents, a new role and a step some analysts said could help reinforce investors' confidence in the company.
Fee-related earnings grew 18.4% to $323.3 million in the quarter.
Fund management fees rose 16% and transaction and portfolio advisory fees, which Carlyle earns from arranging capital market deals for its portfolio companies and other clients, jumped 66%.
Assets under management at the Washington, D.C.-based company rose 7% to $465 billion, thanks to growth in AlpInvest, Carlyle's unit for second-hand private equity funds.
The secondary market has given pension funds and other private equity investors a way to sell stakes in companies at a time when elevated interest rates, sweeping U.S. tariffs and geopolitical uncertainty have hampered dealmaking.
Still, market activity was accelerating, Schwartz said.
The company generated $13.4 billion of fresh capital. It deployed $14.6 billion and had $89 billion available for investment at the end of the quarter.
So far this year, Carlyle's shares have jumped nearly 19% compared with an 8.3% growth in the Nasdaq composite index.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
The Rank Group Plc Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
The Rank Group Plc (LON:RNK) shareholders are probably feeling a little disappointed, since its shares fell 6.4% to UK£1.38 in the week after its latest full-year results. It looks like a credible result overall - although revenues of UK£795m were what the analysts expected, Rank Group surprised by delivering a (statutory) profit of UK£0.095 per share, an impressive 20% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rank Group after the latest results. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Taking into account the latest results, the consensus forecast from Rank Group's four analysts is for revenues of UK£852.7m in 2026. This reflects a reasonable 7.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 9.2% to UK£0.10. In the lead-up to this report, the analysts had been modelling revenues of UK£838.2m and earnings per share (EPS) of UK£0.092 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice increase in earnings per share expectations following these results. See our latest analysis for Rank Group There's been no major changes to the consensus price target of UK£1.82, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Rank Group analyst has a price target of UK£2.00 per share, while the most pessimistic values it at UK£1.63. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Rank Group is an easy business to forecast or the the analysts are all using similar assumptions. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Rank Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Rank Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.0% annually. Factoring in the forecast slowdown in growth, it looks like Rank Group is forecast to grow at about the same rate as the wider industry. The Bottom Line The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Rank Group's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at UK£1.82, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Rank Group going out to 2028, and you can see them free on our platform here. Plus, you should also learn about the 1 warning sign we've spotted with Rank Group . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
23 minutes ago
- Yahoo
Earnings Beat and Acquisitions Strengthen Rocket Companies Progress
Rocket Companies, Inc. (NYSE:RKT) is one of the 11 Best Short Squeeze Stocks to Buy Now. The company surpassed Q2 expectations and has bolstered expectations for its Redfin acquisition and pending COOP transaction. A businessperson using a laptop to review the details of a mortgage loan for a client. Rocket Companies, Inc. (NYSE:RKT) is a leading fintech platform delivering mortgage lending, real estate brokerage, personal finance, and homeownership solutions. The Michigan-based company's ecosystem includes Rocket Mortgage, Rocket Homes, Rocket Close, and Rocket Money. Its business model involves leveraging AI to streamline the homebuying and financial management experience. On July 31, 2025, the company reported achieving an EPS of $0.04 that surpassed the analysts' expectations of $0.03 in its Q2 earnings results. Additionally, Rocket Companies, Inc. (NYSE:RKT)'s revenue reached $1.36 billion, exceeding the projected $1.28 billion, further garnering positive attention from investors. In addition to this, Rocket Companies, Inc. (NYSE:RKT) is anticipated to close the COOP transaction in the fourth quarter of 2025, thus eliminating elevated transaction-related expenses that negatively impacted the company's second-half 2025 earnings. Also, the acquisition of Redfin, completed on July 1, 2025, brought a positive outlook to the company as the combination of the most-visited real estate brokerage website and the U.S.'s largest mortgage lender is expected to improve efficacy. With a short float of 58.38%, Rocket Companies, Inc. (NYSE:RKT) potentially has extreme short interest. However, the stock attracts investor interest as it is subject to a dramatic squeeze in positive momentum. While we acknowledge the potential of RKT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best REIT Stocks to Buy Right Now and 10 Stocks with Huge Catalysts on the Horizon Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23 minutes ago
- Yahoo
Giants' Justin Verlander's brother downplays Dodgers superstar Shohei Ohtani's $240M distraction
Giants' Justin Verlander's brother downplays Dodgers superstar Shohei Ohtani's $240M distraction originally appeared on The Sporting News The Los Angeles Dodgers haven't been playing particularly well lately, including suffering a mid-week sweep at the hands of the Angels. In fact, the Dodgers lost every game they played against the Angels this season. During the series, former Angel Shohei Ohtani found himself on the wrong side of history. 'According to Baseball Almanac's tracker of every triple play in MLB history, it marked just the eighth the Angels have ever turned. As for the Dodgers, they have now fallen victim to 24 triple plays. There had never been a triple play in the 152 games between the Dodgers and Angels since the Freeway Series began in 1997,' SI's Sam Connon wrote. Off the field, Ohtani is facing growing distractions, including an ongoing lawsuit. 'A Hawaii real estate investor and broker are suing Shohei Ohtani, claiming the Los Angeles Dodgers star and his agent got them fired from a $240 million luxury housing development on the Big Island's coveted Hapuna Coast that they brought him in to endorse,' The Associated Press's Jimmy Golen wrote. 'According to the lawsuit filed in Hawaii Circuit Court on Friday, Ohtani's agent, Nez Balelo, increasingly demanded concessions from developer Kevin J. Hayes Sr. and real estate broker Tomoko Matsumoto before demanding that their business partner, Kingsbarn Realty Capital, drop them from the deal.' While the situation is unfolding off the field, MLB analyst and Justin Verlander's brother, Ben Verlander, has attempted to downplay its significance. 'In a since-deleted tweet, Verlander dismissed the $240 million legal fight by telling fans, 'Let's all remember to not just get mad because you see his name attached to something. If his name wasn't Shohei Ohtani we wouldn't even know about this,'' Alvin Garcia wrote. 'He added, 'Never seen so many people care about CIVIL lawsuits regarding real estate.'' Follow The Sporting News on WhatsApp Verlander has certainly minimized the seriousness of the ongoing situation, which could escalate quickly. The Dodgers have done well to keep the matter from becoming a clubhouse distraction. However, Verlander's public comments aren't a good look. Ohtani will continue to play, but if the lawsuit doesn't go well, Verlander's dismissive remarks may come back to haunt him for a long time.
