(Boursier.com) — The Carlyle Group beat consensus for distributable earnings in the fourth quarter, but missed the bar on revenue. The private equity firm, which has just appointed former Goldman Sachs executive Harvey Schwartz as its new CEO, therefore posted a very mixed performance over the period ended. Group co-founder and interim CEO William Conway said Carlyle had faced a difficult market environment but managed to deliver a “strong financial performance” in 2022. The firm reported net profit from the fourth quarter housed at $127 million, or 35 cents per share, from $648 million a year prior. Fourth-quarter revenue fell to $719 million from just under $2 billion, and below Wall Street analysts’ average estimate which was closer to $1 billion according to FactSet. Distributable earnings fell to $1.01 per share from $2.01 a year earlier, but exceeded the consensus of 97 cents.
Note also that according to the New York Times, Harvey Schwartz was not Carlyle’s first choice for the position of CEO. People familiar with the talks told the NYT that Carlyle had contacted at least half a dozen high-level Wall Street executives, some of whom reportedly declined to be interviewed for the job — in addition to internal candidates. Some of the external candidates reportedly asked if they could sell the business if they took the job… A person with direct knowledge of the matter said the uncertainty following the sudden departure of former CEO Kewsong Lee had upset many large Carlyle clients, including a number of global pension funds.
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