Carlyle, the world's second-biggest private-equity manager, is expanding beyond buyouts in a volatile global economy that has quelled deal-making and managers' ability to reap profits by selling companies. Private-equity rivals Blackstone Group LP (BX) and Apollo Global Management LLC (APO) also reported lower second-quarter profit as market swings hurt the value of their holdings and hampered their ability to sell or take their companies public. "Realization activity was relatively muted, driven by uncertain capital market conditions," Roger Freeman, a Barclays Plc analyst, wrote in a July 24 note to clients about the so- called alternative asset managers. "Fundraising continues to be strong across the group, driven by credit, infrastructure and natural-resources funds."