Carlyle sees improving exit conditions for "good companies"

Investing.com -- Carlyle Group Inc. reported improved conditions for exiting investments as capital markets show signs of recovery, Chief Financial Officer Justin Plouffe said Wednesday.

The firm's US buyout team distributed 23% of fair market value over the last 12 months, double the industry average, with exits spanning Japan, US real estate and other sectors, Plouffe said in a Bloomberg Television interview.

"The market is open if you have good companies and you know how to find the right buyer," Plouffe said, challenging views of a persistent buyer-seller disconnect over valuations. Carlyle completed exits through sales and initial public offerings.

The Washington-based firm posted its highest quarterly earnings in almost four years as it sold private equity holdings and returned cash to shareholders.

Plouffe addressed private credit, noting that default rates in Carlyle's portfolio remain low. Management teams have navigated the current "tricky" environment effectively, said Plouffe, who spent almost 20 years as a credit investor before becoming CFO this year.

Credit markets are bifurcated, with spreads relatively tight outside software, he said. The industry's resilience through prior rate cycles suggests it can handle further stress.

The firm launched a dedicated aerospace, defense and industrials platform, completing its first deal last month with the acquisition of Secturion Systems. The platform formalizes nearly four decades of Carlyle activity in the sector and reflects a long-term focus on national security and data infrastructure, Plouffe said.

Plouffe ruled out acquisitions for growth, saying the firm "put out a plan in February that was a 100% organic. We feel great about that plan. Our shareholders feel great about that plan. So we don't need inorganic growth to achieve our goals."

Carlyle shares fell 14% this year through Tuesday, while the S&P 500 Index gained 13%.

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