Private equity firm Carlyle Group L.P. (CG.O) posted higher-than-expected quarterly earnings on Wednesday, in line with its peers, as a firmer global financial market bolstered investment returns.
Carlyle said it had earned economic net income of $158.3 million before taxes in the second quarter. A key metric for U.S. private equity firms, ENI accounts for unrealized gains or losses in investments.
ENI was down 12 percent from a year earlier but more than 1.5 times the first-quarter result, reflecting the turnaround in financial markets.
After taxes, Carlyle said it had earned ENI of $115.1 million, or 35 cents per share. Analysts on average had expected 31 cents per share, according to Thomson Reuters I/B/E/S.
Indeed, Carlyle said returns earned on investments hit 5 percent for the quarter, the highest in more than a year.
Natural resources holdings posted the biggest gains at 11 percent, helped by a 26 percent rebound in oil prices CLc1 during the quarter.
The Washington D.C.-based firm, which manages $175.6 billion, is the latest U.S. buyout company to report higher-than-expected earnings, mirroring similar performances from rivals Blackstone Group (BX.N) and KKR & Co LP.
Photo: A general view of the lobby outside of the Carlyle Group offices in Washington, May 3, 2012. Reuters/Jonathan Ernst