Carlyle Profits Slip in Quarter of CEO Change and Market Tumult

Carlyle Group Inc.’s profit sank in the third quarter after the exit of its top boss and market tumult rippled through the private equity firm.

Distributable earnings fell about 12% to $644 million in the quarter ended September from a year ago, Carlyle reported Tuesday. Profit available to shareholders was $1.42 a share, beating the $1.07 average estimate of analysts surveyed by Bloomberg.

After generating windfalls on the back of cheap debt and surging markets, the private equity industry is being tested by the consequences of rapid rate hikes by the Federal Reserve. Volatile markets are hampering buyout firms’ ...