Carlyle tops profit expectations on pick-up in fees, deals

Carlyle's shares rose 1.7% in premarket trading.

The traditional private equity model of buying and selling companies has been hampered by rising interest rates in recent years, but Carlyle's larger peers KKR and Blackstone reported improving returns from cashing in on their investments in the second quarter.

Carlyle's stock has lost more than 14% of its market value so far this year, in line with other alternative asset managers.

Inflows totaled $16.8 billion, boosted by a $5 billion commitment to its next U.S. buyout fund through a structured deal it offered to cornerstone investors in May.

Credit strategies attracted $5.8 billion and the AlpInvest secondaries business $4.5 billion.

Total assets under management stood at $485 billion, which is 4% higher than a year ago. AlpInvest grew 16% in that time, credit swelled 4%, while private equity assets shrank 1% as assets were sold.

Global investment firm Carlyle topped Wall Street estimates for second-quarter profit on Wednesday, as fee-related earnings climbed and the group booked proceeds from deals in Japan and the U.S.