GLOBAL investment firm The Carlyle Group yesterday reported its third quarter earnings increased nearly fivefold, fuelled by record asset sales, predominantly from its private equity portfolio.

Distributable earnings rose to a record $713m, up from $152m a year earlier. This brought distributable earnings for the year so far to $1.3bn - an increase of 255 per cent.

PE firms like Carlyle have benefited from the economy reopening post-pandemic, paired with low interest rates. This perfect storm has sent mergers and acquisitions to new record highs, and allowed them to cash in high on selling investments.

It comes after rival US giant Blackstone last week reported that its distributable earnings had more than double to an all-time high in the third quarter, also due to robust asset sales.

Carlyle also raised capital in the quarter and invested $6.3bn to buy stakes in new companies, including Japanese renewable energy firm JAG energy.

"We feel excited about the momentum we are creating across all of our business," chief executive Kewsong Lee told the Financial Times. In reference to its improved credit business, he said: "It's been one heck of a turnaround."

(c) 2021 City A.M., source Newspaper