Carlyle Group predicts 2018 slowdown

Carlyle Group has said it will struggle to match its 2017 investment gains this year, due to the volatile stock market and rising interest rates.

It reported bumper fourth-quarter earnings last year, with its private equity funds rising by eight per cent in the last three months. Its fourth-quarter economic net income per adjusted unit came in at $1.01, well ahead of analysts’ expectations for 62 cents

However, co-chief executive Kewsong Lee said, ‘As we sit here today, the investment environment is challenging, with market valuation levels recently at all-time highs, increasing volatility that we are all witnessing in real time, and the potential for upwards movement in interest rates.

‘It will be difficult for us to generate the same level of appreciation across our platform in 2018 as we delivered in 2017.’