Carlyle doubles profits in Q2

The private equity firm doubled profits, but still missed expectations

Washington-based Carlyle Group managed to double profits in the second quarter, reporting net income of $318 million according to an earnings statement released today. The company reported earnings of 73 cents per share, missing the 74 cents per share expectation by a penny.

Despite that, Carlyle realized $6.5 billion in cash proceeds for investors this quarter and 14 of its private equity funds are now in cash carry. Performance fees from one of its European buyout funds also bolstered profits this quarter.

“While Carlyle funds continue to produce strong returns for our fund investors, the big story is the strong performance of our European private equity businesses. Carlyle Europe Partners III has appreciated 47% over the past year and has begun generating substantial realized performance fees, further diversifying the composition of Carlyle's earnings. Our European technology funds are also performing exceptionally well,” Carlyle Co-CEO William E. Conway, Jr. said in a statement.

Carlyle has been taking advantage of the frothy activity in private equity this year, acquiring in-store marketer Acosta as PEI reported yesterday, and launching several successful IPOs including Healthscope, an Australian healthcare company, and Applus, a Spanish testing and inspection company.

Notable exits include Sermeta, a French heat exchanger manufacturer.

The firm added $3.4 billion into new deals, more than double the $1.3 billion one year ago.

On the fundraising side, Carlyle added $7.4 billion in new money, up from the $6.9 billion it raised the same period a year ago. The firm expects several fund closings in the third quarter, including its first international energy fund which is on pace to be the largest first fund in Carlyle’s history.

Carlyle's assets under management were $202.7 billion as of the end of June, up from $198.9 billion as of the end of March. Carlyle shares were up about 1.8% Wednesday morning at $35.