Carlyle Group has posted stronger-than-expected Q1 results, reporting $311m in fee-related earnings – a 17% increase year-on-year – as the firm makes strides in returning to growth after three years of muted performance and internal succession challenges.

The US-based buyout group raised $14bn in new capital during the first quarter and $50bn over the past 12 months, lifting total assets under management to a record $453bn.

“It feels great where we are in our process,” said CEO Harvey Schwartz, who joined in 2023 following a long tenure at Goldman Sachs. “All of our strategic initiatives, including target fee growth and margin expansion, are on track.”

Carlyle’s secondaries platform, AlpInvest, emerged as its fastest-growing unit with profits nearly doubling. The firm also completed profitable exits from portfolio companies including aviation services group StandardAero and IT services provider Hexaware Technologies.

Despite the positive earnings momentum, Schwartz noted that macro uncertainty tied to trade tensions and the US political climate is weighing on the broader M&A environment. “We want to get rewarded properly for the risk we’re taking,” he said. “It’s not so much a green or red light – more of a yellow light.”

Schwartz added that he remains optimistic the US Federal Reserve would act decisively if interest rate cuts were needed, citing the central bank’s policy flexibility.

Carlyle’s improving financial performance comes as the firm looks to reassert its position as a leading global private equity player following a prolonged period of transition.

Source: Financial Times