NEW YORK (TheStreet) -- Shares of Carlyle Group LP (CG) are up 1.05% to $34.75 after the alternative asset management firm said its second quarter earnings doubled from a year ago as one of its European buyout funds started paying performance fees, highlighting the growth potential of its private equity business in Europe, Reuters reports.
While two U.S. buyout funds accounted for more than half of all of Carlyle's performance fees in the quarter, the firm said its third European buyout fund was now also a contributor.
Carlyle said economic net income (ENI), an earnings metric that factors in the mark-to-market value of its portfolio, jumped to $318 million in the second quarter from $156 million a year ago, as it took advantage of a stock market rally and buoyant capital markets to exit more of its portfolio companies, Reuters noted.
That translated to post-tax ENI per adjusted unit of 73 cents versus the 74 cent average forecast of analysts in a Thomson Reuters poll.
TheStreet Ratings team rates CARLYLE GROUP LP as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CARLYLE GROUP LP (CG) a SELL. This is based on the dominance of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow."