Carlyle Group Quarterly Profit Rises on Private-Equity Dealmaking

according to Reuters. The performance was driven by gains in its private-equity arm and its credit and secondaries businesses. CEO Harvey Schwartz highlighted that 2025 was a record year for the firm, exceeding internal targets.

Net realized performance revenue rose to $123 million in the quarter, bolstered by exits from the U.S. buyout fund, two European technology funds, and an opportunistic credit fund. The company also noted a rebound in mergers and acquisitions activity following lower interest rates and easing concerns about potential impacts from U.S. President Donald Trump's policies.

Fee-related earnings increased by 1% year-over-year to $290 million according to Reuters. Carlyle raised $53.7 billion in fresh capital in fiscal 2025, expanding its total assets under management to $477 billion. This was driven largely by inflows into its secondaries business, Carlyle AlpInvest, and its credit funds according to Reuters.

Why Did This Happen?

The firm's strong performance in 2025 was supported by its exit strategies and strategic exits from certain holdings. For instance, Carlyle sold its stake in U.S. chip startup Ampere and British fund network Calastone in 2025 according to Reuters. These moves contributed to a rise in performance-based income. Additionally, the firm's public offering of medical supplies company Medline in December added to its gains according to Reuters.

The broader M&A environment improved late in 2025. Lower interest rates reduced financing costs for deals, while concerns over potential regulatory shifts under the Trump administration began to ease. This environment encouraged more deal activity, particularly in the private equity and credit markets according to Reuters.

How Did Markets React?

Despite the strong quarterly results, Carlyle's stock has lost around 6% in 2026 amid a global market selloff according to Reuters. However, the stock remains up more than 5% compared to the same period in the previous year. The firm's shares have been under pressure due to broader market declines rather than specific concerns about Carlyle's performance.

Analysts remain cautiously optimistic. The stock trades at a forward price-to-earnings ratio of 14.54, compared to a trailing P/E of 31.81 according to Investing.com. This suggests that investors are valuing the company based on future growth potential rather than current earnings according to Reuters.

What Are Analysts Watching Next?

Carlyle will host a shareholder update on February 26, where it will outline its growth outlook and financial goals according to its IR. The firm appointed three co-presidents in January to enhance its ability to operate at scale and drive performance according to Investing.com. Management is expected to provide further clarity on its strategy and how it plans to sustain its recent momentum.

Investors are also monitoring the firm's ability to generate consistent revenue growth after a weak third quarter, which saw revenue fall 66% below expectations according to Investing.com. Success in fundraising and deal activity will be key indicators of the firm's ability to meet or exceed analyst expectations.

The upcoming earnings report on February 6 will be closely watched as a test of whether the firm can maintain its upward trajectory according to Seeking Alpha. Analysts currently expect earnings of $1.02 per share on revenue of $1.07 billion for the quarter according to Investing.com. The firm's ability to deliver on these forecasts will likely influence investor sentiment and stock performance in the near term.