Carlyle Group LP (CG) Economic Net Income Rises To $394M

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Carlyle Group LP (NASDAQ:CG) reported a marginal surge in its economic net income for the first quarter of fiscal 2013. The Carlyle group is an investment firm, which primarily deals with direct fund and fund of fund investments. The economic net income for the firm came in at $394 million from the previous year’s corresponding quarter of $392.1 million. The company recorded net income of $1.02 per adjusted unit on a post tax basis for the first quarter.

Carlyle Group

Carlyle Group LP (CG) Net Income Attribute

The net income attributable to Carlyle Group LP (NASDAQ:CG) came in at $34 million or $0.66 per share for the first quarter of 2013.

The analysts polled by Reuters estimated the earnings per share of $0.94 for the quarter including one -time items.  The revenues of the company based on GAAP came in at $1145 million for the first quarter, as against $1110.9 million during the previous fiscals first quarter.

Management Views

The Co-chief executive officer, David M.Rubenstein said that the first quarter results reflected strong position of the company. The Fundraising was tremendous with $5 billion raised in new capital. The firm also realized $4 billion in realized proceeds. He said that the team is determined to invest in the operational capabilities of Carlyle Group LP (NASDAQ:CG). The main focus will be to form an international energy team, to set up a new business development corporation and also more comprehensive retail strategy.

William E.Conway the Jr., Co-Chief Executive Officer of Carlyle Group LP (NASDAQ:CG) said that the carry funds of the firm performed better and increased 7 percent in the first quarter. The global market strategies of the firm were also thriving and performed well along all metrics. Conway said that the distribution earnings were strong, and ENI increased two folds quarter over quarter. He said that the main area of focus of the firm is long term growth and profitability, which will give benefits and returns to fund and public investors as well.

Rival’s Results

The rival The Blackstone Group L.P. (NYSE:BX) saw an increase in its earnings in the first quarter of 2013. The net income for the quarter came in at $167.63 million or 29 cents per share, an increase over $58.32 million, or 11 cents from the corresponding quarter of the previous year.

The first quarter results of KKR & Co. L.P. (NYSE:KKR) also increased. The net income attributable to the company came in at $193.44 million, an increase over $190.44 million last year. The economic net income for the firm came in at $647.7 million, a decline from $727 million last year.

Analysts Take

Overall, the quarter was a good one for Carlyle Group LP (NASDAQ:CG), believes a report from Bank of America Merrill Lynch. The group witnessed “rising AUM, healthy fundraising / deployment / realization activity, and strong portfolio gains.” However, it does point out some issues like, low DE, weaker FRE, and marginally lower FPAUM (driven by CPE). As per the report, the group has a less than impressive distribution policy when compared to peers.

The report gives a ‘Buy’ rating to the stock.

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