Why Carlyle Group Shares Are Diving Today

The Carlyle Group Inc. CG shares are trading lower today. The company inked a deal to sell Cogentrix Energy to Quantum Capital Group and its affiliates for around $3 billion.

The Cogentrix platform includes 5.3 gigawatts of efficient natural gas-fired power plants across PJM, ERCOT, and ISO-NE, enhancing the reliability, resilience, and affordability of the U.S. electricity market.

The transaction, pending regulatory approvals, is expected to close between the fourth quarter of 2024 and the first quarter of 2025.

Matt O’Connor, a Partner within Carlyle’s Global Infrastructure team, said, “This is a win-win transaction for everyone involved as Cogentrix begins its next chapter of growth with Quantum. We are proud of the significant transformation Cogentrix has achieved under our ownership.”

Pooja Goyal, CIO of Global Infrastructure at Carlyle, commented, “We are pleased to have supported Cogentrix’s efforts to establish decarbonization objectives for its fleet of natural gas-fired power generation assets while continuing to support grid reliability, a critical balance required to effectuate the energy transition.”

Read: Carlyle’s $4B Purchase Of Baxter’s Kidney Division Backed By Ares And HPS Financing

In addition, Carlyle reported that in the second quarter of FY24, the adjusted EPS of $0.78 missed the consensus of $0.83, and Total Segment revenues of $788.0 million missed the consensus of $827.5 million.

Net Accrued Performance Revenues were $2.2 billion, generally flat quarter-over-quarter, and down 9% from the fourth quarter of 2023, primarily reflecting the impact of realizations. Realized Net Performance Revenues were $56 million due to exits in the international energy fund and the sixth U.S. buyout fund. Apart from this, Fee related earnings rose 32% Y/Y to $273 million in the quarter.

Investors can gain exposure to the stock via EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO and Invesco Global Listed Private Equity ETF PSP.

Price Action: CG shares are trading lower by 7.53% at $40.90 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.