The Carlyle Group Inc. · NASDAQ:CG
The Carlyle — Q1 2025 Earnings Presentation
39 slides from The Carlyle's earnings presentation, May 8, 2025
Slide 1: Carlyle Reports First Quarter 2025 Financial Results
Carlyle Reports First Quarter 2025 Financial Results MAY 8, 2025
Slide 2: Carlyle Reports First Quarter 2025 Financial Results
Carlyle Reports “Our quarterly results reflect First Quarter 2025 focused execution against our long-term strategy, evidenced by Financial Results record Fee Related Earnings, WASHINGTON, D.C. AND NEW YORK – May 8, 2025 – Global investment firm The FRE margin, and assets under Carlyle Group Inc. (NA
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking indicated in these statements including, but not limited to, statements within the meaning of Section 27A of the those described in this presentation and under the section Securities Act of 1933, as amended, and Section 21E of
Slide 4: First Quarter 2025 Financial Results
First Quarter 2025 Financial Results
Slide 5: Carlyle First Quarter 2025 U.S. GAAP Results
Carlyle First Quarter 2025 U.S. GAAP Results Net income attributable to The Carlyle Group Inc. common stockholders was $130 million for Q1 2025, or $0.35 per share on a diluted basis (Dollars in millions, except per share amounts) 1Q'24 1Q'25 LTM 1Q'24 LTM 1Q'25 REVENUES Fund management fees $ 523.6
Slide 6: Carlyle First Quarter 2025 Highlights
Carlyle First Quarter 2025 Highlights • Distributable Earnings (“DE”) of $455 million for Q1 2025 on a pre-tax basis, or $1.14 per common share on a post-tax basis, and $1.5 billion, or $3.79 per common share, for the LTM Financial • Fee Related Earnings (“FRE”) of $311 million for Q1 2025 and $1.1
Slide 7: Carlyle First Quarter 2025 Total Segment Operating Results
Carlyle First Quarter 2025 Total Segment Operating Results (Dollars in millions, except per share amounts) 1Q'24 1Q'25 LTM 1Q'24 LTM 1Q'25 SEGMENT REVENUES Fund management fees $ 515.6 $ 525.5 $ 2,073.8 $ 2,117.4 Transaction and portfolio advisory fees, net and other 26.7 77.9 90.7 214.8 Fee related
Slide 8: Distributable Earnings
Distributable Earnings • Distributable Earnings were $455 million in Q1 2025 and $1.5 billion for the LTM • Realized Net Performance Revenues were $127 million in Q1 2025 and $352 million for the LTM • Realized Principal Investment Income was $30 million in Q1 2025 and $97 million for the LTM Quarte
Slide 9: Fee Related Earnings
Fee Related Earnings • Fee Related Earnings of $311 million in Q1 2025 increased 17% compared to $266 million in Q1 2024. Fee Related Earnings was $1.1 billion for the LTM • FRE margin1 of 48% in Q1 2025 increased from 47% in Q1 2024. FRE margin for the LTM was 46% Quarterly FRE and FRE Margin FRE a
Slide 10: Performance Revenues
Performance Revenues • Net Accrued Performance Revenues1 were $2.7 billion as of Q1 2025, down 2% from the prior quarter, primarily reflecting the impact of realizations and lower net accrued performance revenues in our fifth Asia buyout fund. These were partially offset by the impact of 2% apprecia
Slide 11: Total Assets Under Management
Total Assets Under Management Total Assets Under Management1 of $453 billion at March 31, 2025 increased 3% from the prior quarter. The increase in Q1 2025 was driven by a 5% increase in Carlyle AlpInvest AUM attributable to inflows, particularly in our secondaries & portfolio finance, co- investmen
Slide 12: Performance Fee Eligible Assets Under Management
Performance Fee Eligible Assets Under Management Performance Fee Eligible AUM4 of $231 billion was up 2% quarter-over-quarter, primarily driven by inflows in our Carlyle AlpInvest funds and 2% appreciation across the carry fund portfolio. Performance Fee Eligible AUM was up 7% from $217 billion one
Slide 13: Fee-earning Assets Under Management
Fee-earning Assets Under Management Fee-earning Assets Under Management6 of $314 billion at March 31, 2025 were up 3% from the prior quarter, driven by a 4% increase in Global Credit from inflows in insurance solutions and deployment across the platform, as well as a 4% increase in Carlyle AlpInvest
Slide 14: Key Metrics Activity
Key Metrics Activity • Inflows1 were $14.2 billion in Q1 2025, driven by our insurance solutions and asset-backed finance strategies in Global Credit, as well as our secondaries & portfolio finance and co-investments strategies and CAPM funds in Carlyle AlpInvest. Inflows of $49.6 billion for the LT
Slide 15: Segment Highlights
Segment Highlights
Slide 16: Global Private Equity
Global Private Equity • Total AUM was $164 billion as of March 31, 2025, flat from the prior quarter, as Inflows of $2.7 billion, portfolio appreciation, and positive $22 $124BN foreign exchange activity offset realizations. Inflows in Q1 2025 included fundraising in our U.S. real estate funds. Tota
Slide 17: Global Credit
Global Credit • Total AUM was $199 billion as of March 31, 2025, up 4% from the prior quarter, as Inflows of $7.5 billion and market activity more than offset outflows. Inflows activity in Q1 2025 was driven by our insurance solutions and asset-backed finance strategies. Total AUM $182BN $68 increas
Slide 18: Carlyle AlpInvest
Carlyle AlpInvest • Total AUM was $89 billion as of March 31, 2025, a 5% increase from the prior quarter, as Inflows of $3.9 billion in Q1 2025, as well as positive foreign exchange activity and 1% segment appreciation, exceeded outflows for the period. Inflows in Q1 2025 were primarily driven by ou
Slide 19: Supplemental Details
Supplemental Details
Slide 20: Carlyle First Quarter 2025 Total Segment Results
Carlyle First Quarter 2025 Total Segment Results (Dollars in millions, except per share amounts) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 LTM 1Q'24 LTM 1Q'25 SEGMENT REVENUES Fund management fees $ 515.6 $ 525.5 $ 526.5 $ 539.9 $ 525.5 $ 2,073.8 $ 2,117.4 Transaction and portfolio advisory fees, net and other
Slide 21: Total Segment Balance Sheet Highlights
Total Segment Balance Sheet Highlights • Balance sheet assets attributable to Carlyle shareholders, including cash and equivalents, net accrued performance revenue and investments, net of debt obligations, totaled $5.0 billion at March 31, 2025 • Balance sheet cash totaled $1.2 billion as of March 3
Slide 22: AUM and Fee-earning AUM Roll Forward
AUM and Fee-earning AUM Roll Forward Total AUM Roll Forward in millions Three Months Ended March 31, 2025 Twelve Months Ended March 31, 2025 Global Private Global Carlyle Global Private Global Carlyle Equity Credit AlpInvest Total Equity Credit AlpInvest Total Balance, Beginning of Period $ 163,533
Slide 23: Global Private Equity Fund Performance
Global Private Equity Fund Performance REALIZED/PARTIALLY REALIZED TOTAL INVESTMENTS (Reported in Local Currency, mn) INVESTMENTS(5) As of March 31, 2025 As of March 31, 2025 Cumulative Remaining Net Accrued Committed Invested Percent Realized Fair MOIC Gross IRR Net IRR Carry/ Total Fair MOIC Gross
Slide 24: Global Private Equity Fund Performance, continued
Global Private Equity Fund Performance, continued REALIZED/PARTIALLY REALIZED TOTAL INVESTMENTS (Reported in Local Currency, mn) INVESTMENTS(5) As of March 31, 2025 As of March 31, 2025 Cumulative Remaining Net Accrued Committed Invested Percent Realized Fair MOIC Gross IRR Net IRR Carry/ Total Fair
Slide 25: Global Credit Fund Performance
Global Credit Fund Performance CARRY FUNDS TOTAL INVESTMENTS ($ mn) As of March 31, 2025 Cumulative Committed Invested Percent Realized Remaining Fair MOIC Gross IRR Net IRR Net Accrued Fund (Fee Initiation Date / Stepdown Date)(28) Capital(29) Capital(19) Invested Value(2) Value(3) (4) (6)(12) (7)(
Slide 26: Carlyle AlpInvest Fund Performance
Carlyle AlpInvest Fund Performance TOTAL INVESTMENTS (Reported in Local Currency, mn) As of March 31, 2025 Cumulative Remaining Net Accrued Vintage Invested Realized Fair Total Fair Gross IRR Net IRR Carry/(Giveback) Carlyle AlpInvest (22)(26) Year Fund Size Capital (1)(23) Value (23) Value(23) Valu
Slide 27: Reconciliations & Disclosures
Reconciliations & Disclosures
Slide 28: Reconciliation for Distributable Earnings Per Share
Reconciliation for Distributable Earnings Per Share (Unaudited) Our estimated DE effective tax rate was 9.2% for Q1 2025, reflecting the impact of tax deductions resulting from the vesting of restricted stock units and the amortization of intangible assets related to acquisitions, partially offset b
Slide 29: Reconciliation of GAAP to Total Segment Information
Reconciliation of GAAP to Total Segment Information (Dollars in millions) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 LTM 1Q'24 LTM 1Q'25 FY'23 FY'24 INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES $ 120.7 $ 218.8 $ 788.8 $ 265.4 $ 171.0 $ (639.8) $ 1,444.0 $ (600.9) $ 1,393.7 Adjustments: Net unrealized performa
Slide 30: Reconciliation of GAAP to Total Segment Information, continued
Reconciliation of GAAP to Total Segment Information, continued Total Reportable Consolidated Reconciling Carlyle Total Reportable Consolidated Reconciling Carlyle (Dollars in millions) Segments Funds Items Consolidated1 Segments Funds Items Consolidated1 Three Months Ended March 31, 2024 Year Ended
Slide 31: Reconciliation of GAAP to Total Segment Information, continued
Reconciliation of GAAP to Total Segment Information, continued Carlyle Reconciling Total Reportable Carlyle Reconciling Total Reportable (Dollars in millions) Consolidated Items1 Segments Consolidated Items1 Segments Three Months Ended March 31, 2024 Year Ended December 31, 2023 Performance revenues
Slide 32: Reconciliation of GAAP to Total Segment Information, continued
Reconciliation of GAAP to Total Segment Information, continued (Dollars in millions) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 LTM 1Q'24 LTM 1Q'25 FY'23 FY'24 REVENUE RECONCILING ITEMS Unrealized performance and fee related performance revenues $ (521.6) $ 47.4 $ 1,495.1 $ 11.0 $ (197.3) $ (1,547.5) $ 1,356.2 $
Slide 33: Reconciliation for Total Segment Information, continued
Reconciliation for Total Segment Information, continued RECONCILIATION OF TOTAL INVESTMENTS RECONCILIATION OF ATTRIBUTABLE TO THE CARLYLE GROUP INC. ACCRUED PERFORMANCE ALLOCATIONS (Dollars in millions) 03/31/25 (Dollars in millions) 12/31/24 03/31/25 ACCRUED PERFORMANCE ALLOCATIONS, NET OF INVESTME
Slide 34: GAAP Statement of Operations
GAAP Statement of Operations (Unaudited) (Dollars in millions, except per share amounts) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 LTM 1Q'24 LTM 1Q'25 FY'23 FY’24 REVENUES Fund management fees $ 523.6 $ 534.4 $ 532.7 $ 597.4 $ 586.1 $ 2,066.0 $ 2,250.6 $ 2,043.2 $ 2,188.1 Incentive fees 26.2 31.3 38.7 37.3 43.2
Slide 35: GAAP Balance Sheet
GAAP Balance Sheet (Unaudited) As of March 31, 2025 Consolidated Consolidated (Dollars in millions) Operating Entities Funds Eliminations Consolidated ASSETS Cash and cash equivalents $ 1,190.3 $ — $ — $ 1,190.3 Cash and cash equivalents of Consolidated Funds — 570.9 — 570.9 Restricted cash 9.0 — —
Slide 36: Notes
Notes Dividend Policy Our dividend policy for our common stock is an annual rate of $1.40 per share ($0.35 per common share on a quarterly basis). The declaration and payment of any dividends to holders of our common stock are subject to the discretion of our Board of Directors, which may change our
Slide 37: Notes, continued
Notes, continued Notes on Assets Under Management (Pages 11-13) (continued) (7) Pending Fee-earning Assets Under Management refers to commitments that have been raised and will become Fee-earning Assets Under Management upon the activation of recurring fund management fees on the commitments, or as
Slide 38: Notes, continued
Notes, continued Notes on Fund Performance Tables (Pages 23-26) (continued) (3) Represents remaining fair value, before management fees, expenses and carried interest, and may include remaining escrow values for realized investments. (4) Multiple of invested capital (“MOIC”) represents total fair va
Slide 39: Notes, continued
Notes, continued Notes on Fund Performance Tables (Pages 23-26) (continued) (22) Includes private equity and mezzanine primary fund investments, secondary fund investments and co-investments originated by AlpInvest. Excluded from the performance information shown are: (a) investments that were not o