Carlyle Group recorded higher quarterly profit, with distributable earnings - the profit available to return to shareholders - rising 13.7% from a year earlier to $436 million, or $1.01 per share.
The company said cashing in on assets at its private-equity business and gains from its global credit operations helped lift net realized performance revenue to $123 million for the quarter. Carlyle also pointed to exit activity at its U.S. buyout fund, two European technology funds and an opportunistic credit fund as contributors to the quarter's realized returns.
CEO Harvey Schwartz said in a statement: "2025 was a record year for Carlyle, and we significantly outperformed the targets we set at the beginning of the year."
Fee-related earnings rose 1% to $290 million. During 2025 the firm sold its stake in U.S. chip startup Ampere and in British fund network Calastone, and it took medical supplies company Medline public in December.
Carlyle continued to attract fresh capital, raising $53.7 billion in fiscal 2025. That fundraising increased the firm's total assets under management to $477 billion, an 8% rise versus the prior year. The company said inflows were concentrated in its secondaries business, Carlyle AlpInvest - which operates in the secondary market for private-equity stakes - and in its credit funds.
The broader deal environment also provided tailwinds. Carlyle cited a rebound in mergers and acquisitions late in the prior year after a prolonged downturn, noting that lower interest rates made deal financing cheaper and that concerns over the effects of policies introduced by U.S. President Donald Trump began to ease.
On market performance, Carlyle's shares have fallen by around 6% so far in 2026 amid a global selloff, though they remain up more than 5% over the past year.
The firm highlighted several discrete transactions and business lines that supported the quarter's results while pointing to continued demand for secondaries and credit strategies as sources of fresh capital.
Investor tools and screening services were mentioned in company commentary on stock selection, asking whether investors should be buying CG now and noting that algorithmic evaluation systems assess companies across many financial metrics to identify opportunities. The commentary referenced prior notable stock performances that the system has highlighted.
Key points
- Distributable earnings rose 13.7% year-over-year to $436 million, or $1.01 per share.
- Net realized performance revenue increased to $123 million, supported by exits across private equity and credit funds.
- Carlyle raised $53.7 billion in fiscal 2025, lifting assets under management to $477 billion, up 8% year-over-year; inflows focused on secondaries and credit.
Risks and uncertainties
- Equity market volatility - Carlyle's shares have fallen around 6% so far in 2026 amid a global selloff, which could affect investor sentiment and valuation.
- Dependence on exit activity - realized gains in the quarter were partly driven by exits from specific funds; future results may hinge on continued exit opportunities in private equity and credit.
- M&A financing conditions - the rebound in mergers and acquisitions credited to lower interest rates played a role in deal flow; any reversal in financing conditions could dampen deal activity.