The Carlyle Group LP (NASDAQ:CG) has had a mixed 2013. The investment firm released a poor earnings report for the last three months of 2012, and, though shares have increased, they have only done so in line with the Nasdaq. The firm is looking toward brighter fortunes for the year ahead, however, according to a new report from Citigroup Inc (NYSE:C).
Carlyle Group’s Strong Fundraising, Strategies
The report, the lead author of which was analyst William R Katz, reiterated a $34 price target on Carlyle Group LP (NASDAQ:CG) shares and talked up some of the opportunities that the company is likely to have in the next year and a half. The bottom line is that the company is likely to see strong fundraising, and its strategies are continuing to improve in strength.
The report follows the firm’s earnings report for the first three months of 2013, which delivered a positive surprise to analysts. Since the start of 2013, shares in the company have increased by a fraction less than 15 percent, matching gains by the wider Nasdaq, but lagging those of the S&P 500.
The Citigroup Inc (NYSE:C) analysts estimate that in 2014, The Carlyle Group LP (NASDAQ:CG) will manage to raise more than $10 billion from three buyout funds centered in the United States, Europe and Japan. The analysts think that the company will wait to meet this goal before it offers additional products, though it currently has 14 funds awaiting close.
In 2011, The Carlyle Group LP (NASDAQ:CG) managed to raise $6.6 billion in 2011, and $14 billion in 2012. The strong fundraising in the year ahead compares well with past performance for the analysts, and they seem confident in their prediction that Carlyle will manage to meet these targets.
Another factor in the firm’s favor, according to Citigroup Inc (NYSE:C), is the company’s diversification of strategy across its businesses. That trend should buffer the company from dramatic changes in any one market, and allows the company to play many different strategies across the globe.
The Citigroup Inc (NYSE:C) analysts think that these factors, including the scalability of its hedge fund and collateralized loan obligation businesses, make the Carlyle Group a decent bet for investors through 2013. The company’s performance fee generation, a major revenue driver, are also continuing to improve at The Carlyle Group LP (NASDAQ:CG).
Scale is all important in the fund-of-fund business, and althoug Carlyle Group LP (NASDAQ:CG) is small compared to some competitors, it’s growing and could be a force in the area in the years to come.