: Carlyle Group stock drops after firm posts loss amid ‘complex’ economic backdrop

Carlyle Group Inc. CG stock was down 6.4% in premarket trades on Wednesday after the private equity firm swung to a second-quarter loss.. Carlyle Group CG said it lost $88.4 million, or 27 cents a share, in the three months ended June 30, while in the year-ago quarter it reported net income of $245.4 million, or 67 cents a share. Second-quarter revenue fell to $462.1 million from $1.05 billion. Fee-related earnings fell 12% to $207 million. Assets under management increased by 1% from the prior quarter to $385 billion. The firm’s quarterly loss was driven by a $104 million investment loss related to its interest in Fortitude Re, a reinsurance business. CEO Harvey Schwartz said, “While the economic backdrop remains complex, and investor sentiment remains mixed, the peak of the inflation cycle may have passed.” Schwartz said Carlyle Group is “cautiously optimistic” that activity levels will accelerate.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.