Carlyle beats analyst expectations

The firm still saw a decline in profits following the slide in energy prices

 

Washington D.C.-based Carlyle group beat analyst expectations for fourth quarter profits despite an overall slide in economic net income, according to results announced on an earnings call today. 

The firm's economic net income, which includes unrealized gains, was down 65 percent to $182.2 million from $520 million a year earlier. The result still beat analyst estimates of 44 cents per share, by coming in at 56 cents per share.

A significant part of the drop is accounted for by the firm's private equity business, resulting from profit taking on deals from funds in Europe and Asia.  Another component was the steep plunge in oil prices, which has caused an overall slowdown in the energy industry.  

Carlyle, which is raising another billion-dollar energy fund, has investments throughout the energy industry globally. The firm currently has approximately $9 billion in dry powder for energy.  On the call, Carlyle co-CEO William Conway said he was happy with the way the firm is positioned in energy, and plans to take advantage of value opportunities in the sector.

The global market strategies unit, which holds its hedge fund investments, also saw a significant slide in performance resulting in asset outflows and a 2 percent drop in performance.