How Carlyle’s compensation change impacted its stock performance
- Carlyle Group reported a net loss of nearly $700 million
- Carlyle’s stock was up 8.5% despite the loss
- The loss was due to a change in how the firm pays its buyout professionals
- Buyout teams will now receive more pay when Carlyle cashes out on a holding or when the stock rises
- Carlyle still made 86 cents a share in distributable earnings for the quarter
- Carlyle plans to buy back $1.4 billion worth of stock
- Analysts welcomed Carlyle’s compensation change
- Carlyle aims to raise $40 billion for its funds in 2024
The private-equity firm Carlyle Group reported a net loss of nearly $700 million, causing its stock to surge by 8.5%. The loss was attributed to a change in the firm’s compensation structure for buyout professionals. Under the new system, buyout teams will receive more pay when Carlyle cashes out on a holding or when the stock rises. Despite the loss, Carlyle still managed to make 86 cents a share in distributable earnings for the quarter and plans to buy back $1.4 billion worth of stock. Analysts praised Carlyle’s compensation change, which follows similar moves by other private-equity firms. Carlyle aims to raise $40 billion for its funds in 2024.
Public Companies: Carlyle Group (Unknown), Blackstone (Unknown), KKR (Unknown)
Private Companies:
Key People: Mark Wilson (Unknown), Brad Bedell (Deutsche Bank Analyst), Harvey Schwartz (Chief Executive of Carlyle Group)
Factuality Level: 7
Justification: The article provides information about Carlyle Group’s financial results and changes in its compensation structure. The information seems to be based on factual data and quotes from analysts. However, there is a lack of context and background information, and some statements are not supported by evidence or further explanation.
Noise Level: 3
Justification: The article provides relevant information about Carlyle Group’s financial performance and compensation changes. It mentions the charge and loss incurred by the firm, as well as the reasons behind the compensation change. It also includes comments from analysts and compares Carlyle to its competitors. However, the article lacks in-depth analysis, scientific rigor, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information about the private-equity firm Carlyle Group’s financial performance and compensation changes for its buyout professionals.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses financial topics related to Carlyle Group’s financial performance and compensation changes, but does not mention any extreme events.
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