Three big private-equity firms hit a second-quarter wall
ByBlackstone Group, Carlyle Group and Apollo Global Management each struggled to match last year’s earnings, when rising markets lifted gains in their funds.
NewsBlackstone Group, Carlyle Group and Apollo Global Management each reported a drop in economic net income, an earnings measure that includes unrealized gains and losses that are marked to the market. The Standard & Poor’s 500 index of large U.S. stocks fell 0.2% in the second quarter, its first quarterly decline since the fourth quarter of 2012.
The three companies, which together manage $688 billion in assets, have churned out profits as they sold holdings into rising markets, a trend that peaked last year. Private-equity firms globally reaped a record $428 billion in 2014 asset sales, a 30% jump from the previous year, according to Preqin Ltd. The companies struggled in the second quarter to keep pace with last year’s earnings, when rising markets lifted gains in their funds…
