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Fee-related earnings, which are generally stable during market volatility, climbed to $312 million, just above analysts' average estimate of $311 million, according to data compiled by LSEG. Sign up here. Inflows were mainly directed towards Carlyle AlpInvest, a unit that buys and sells second-hand stakes in private equity funds and portfolios, and its global credit business. Total assets under management grew 6% to a record $474 billion from a year earlier. Revenue from selling or refinancing assets came in lower than that recorded during the same period last year, which weighed on the company's distributable earnings, or profit that can be returned to shareholders. That metric hit $368 million, or $0.96 per share, undershooting an average analyst forecast of $1.01. Chief Executive Harvey Schwarz highlighted growth in its insurance business, its AlpInvest unit, as well as in higher inflows from wealthy individuals. "The combination of these growth engines gives us strong momentum through year-end and into 2026," and positions Carlyle to exceed its 2025 financial targets, Schwarz said in a statement. The company in August forecast 10% growth in fee-related earnings and inflows of $50 billion for the full year. ALTERNATIVE INVESTMENTS Schwartz has been working on a turnaround after the company faced a few difficult years linked to an industry-wide downturn and an internal succession struggle. Higher interest rates in the last few years have hampered private equity firms' ability to maintain their time-honored model of buying companies, working on them to increase their value, and selling them at a profit. Many firms that started relying on this model have expanded strongly into so-called alternative investments - such as real estate, hedge funds and private credit. AlpInvest has become a growth engine for Carlyle, with assets under management rising 22% in the quarter. The company said in September that the unit has raised $20 billion to buy second-hand private equity stakes. Reporting by Isla Binnie in New York and Arasu Kannagi Basil in Bengaluru; Editing by Shinjini Ganguli Our Standards: The Thomson Reuters Trust Principles., opens new tab Isla Binnie reports on how company directors and executives manage stakeholder and shareholder interests, with a focus on compensation, corporate crises, dealmaking and succession. She also covers how politics, regulation, environmental issues and the broader economy affect boardroom discussions. Isla previously covered business, politics and general news in Spain and Italy. She trained with Reuters in London and covered emerging markets debt for the International Financing Review (IFR).
