The Carlyle Group Inc. · NASDAQ:CG
The Carlyle — Q1 2024 Earnings Presentation
40 slides from The Carlyle's earnings presentation, May 1, 2024
Slide 1: Carlyle Reports First Quarter 2024 Financial Results
Carlyle Reports First Quarter 2024 Financial Results MAY 1, 2024
Slide 2: Carlyle Reports First Quarter 2024 Financial Results
Carlyle Reports First Quarter 2024 “Carlyle’s first quarter Financial Results results reflect continued NEW YORK AND WASHINGTON – May 1, 2024 – Global investment firm The Carlyle momentum across the firm Group Inc. (NASDAQ: CG) today reported its unaudited results for the first quarter including ano
Slide 3: Forward-Looking Statements
Forward-Looking Statements Statements contained in this press release that are not Even if we were to achieve our goals, there is no guarantee historical facts are based on current expectations, estimates, that such fundraising will translate into increased earnings and projections, opinions, and/or
Slide 4: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results
Slide 5: Carlyle First Quarter 2024 U.S. GAAP Results
Carlyle First Quarter 2024 U.S. GAAP Results Net income attributable to The Carlyle Group Inc. common stockholders was $66 million for Q1 2024, or $0.18 per share on a diluted basis (Dollars in millions, except per share amounts) 1Q'23 1Q'24 LTM 1Q'23 LTM 1Q'24 REVENUES Fund management fees $ 500.8
Slide 6: Carlyle First Quarter 2024 Highlights
Carlyle First Quarter 2024 Highlights • Distributable Earnings (“DE”) of $431 million for Q1 2024 on a pre-tax basis, or $1.01 per common share on a post-tax basis, and $1.6 billion, or $3.62 per common share, for the LTM Financial • Fee Related Earnings (“FRE”) of $266 million for Q1 2024 and $932
Slide 7: Carlyle First Quarter 2024 Total Segment Operating Results
Carlyle First Quarter 2024 Total Segment Operating Results (Dollars in millions, except per share amounts) 1Q'23 1Q'24 LTM 1Q'23 LTM 1Q'24 SEGMENT REVENUES Fund management fees $ 506.2 $ 515.6 $ 2,048.9 $ 2,073.8 Transaction and portfolio advisory fees, net and other 16.4 26.7 111.3 90.7 Fee related
Slide 8: Distributable Earnings
Distributable Earnings • Distributable Earnings were $431 million in Q1 2024 and $1.6 billion for the LTM • Realized Net Performance Revenues were $142 million in Q1 2024 and $604 million for the LTM • Realized Principal Investment Income was $34 million in Q1 2024 and $99 million for the LTM Quarte
Slide 9: Fee Related Earnings
Fee Related Earnings • Fee Related Earnings of $266 million in Q1 2024 increased 38% compared to $193 million in Q1 2023. Fee Related Earnings was $932 for the LTM • FRE margin1 of 47% in Q1 2024 increased from 35% in Q1 2023. FRE margin for the LTM was 40% Quarterly FRE and FRE Margin FRE and FRE M
Slide 10: Investment Performance
Investment Performance CARRY FUNDS • Carry fund appreciation was 2% Appreciation across our investment portfolio in (Depreciation) the first quarter, with appreciation of 7% on an LTM Fair Value of 1Q'24 LTM 1Q'24 basis Investments ($ bn) Total Carry Funds $196 2% 7% • Our Global Investment Solution
Slide 11: Performance Revenues
Performance Revenues • Net Accrued Performance Revenues1 were $2.2 billion as of Q1 2024, down 9% from the prior quarter, reflecting the impact of realizations as well as the reversal of unrealized performance allocations in certain carry funds • Realized Net Performance Revenues were $142 million i
Slide 12: Total Assets Under Management
Total Assets Under Management Total Assets Under Management1 of $425 billion at March 31, 2024 was flat to the prior quarter as Q1 2024 inflows and appreciation were offset by outflows across all segments. Total Assets Under Management was up 12% from one year ago Total AUM by Segment Total AUM by P
Slide 13: Performance Fee Eligible Assets Under Management
Performance Fee Eligible Assets Under Management Performance Fee Eligible AUM4 of $217 billion was flat quarter over quarter as new performance fee eligible capital raised, notably in our AlpInvest Secondaries and Co-Investments strategies and our fifth Japan Buyout fund, was offset by realizations
Slide 14: Fee-earning Assets Under Management
Fee-earning Assets Under Management Fee-earning Assets Under Management6 of $304 billion at March 31, 2024 were down 1% from the prior quarter as capital deployment in Global Credit and fee-paying capital raised in our AlpInvest funds were outpaced by outflows in our Global Private Equity and Global
Slide 15: Key Metrics Activity
Key Metrics Activity • Fundraising was $5.3 billion in Q1 2024, driven by continued momentum in our AlpInvest Secondaries and Co-Investment strategies, commitments raised in our fifth Japan Buyout fund, and the closing of our latest vintage U.S. CLO. Fundraising of $35.6 billion for the LTM increase
Slide 16: Segment Highlights
Segment Highlights
Slide 17: Global Private Equity
Global Private Equity • Total AUM was $159 billion as of March 31, 2024, down 1% from the prior $123BN $25 quarter as realizations in Q1 2024 more than offset Fundraising of $1.5 billion and modest appreciation in our carry funds. Fundraising in Q1 Fair Value 2024 was primarily driven by our fifth J
Slide 18: Global Credit
Global Credit • Total AUM was $186 billion as of March 31, 2024, down 1% quarter over quarter, driven by outflows of $2.4 billion, which more than offset $13 Fundraising of $1.5 billion. Fundraising activity during the quarter included the closing of a new U.S. CLO, subscriptions in CTAC, and $171BN
Slide 19: Global Investment Solutions
Global Investment Solutions • Total AUM was $80 billion as of March 31, 2024, a 4% increase quarter over quarter, reflecting Fundraising of $2.3 billion in Q1 2024, particularly in our secondaries and co-investment strategies, and 5% segment appreciation, which exceeded $2.0 billion of outflows for
Slide 20: Supplemental Details
Supplemental Details
Slide 21: Carlyle First Quarter 2024 Total Segment Results
Carlyle First Quarter 2024 Total Segment Results (Dollars in millions, except per share amounts) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 LTM 1Q'23 LTM 1Q'24 SEGMENT REVENUES Fund management fees $ 506.2 $ 515.0 $ 518.1 $ 525.1 $ 515.6 $ 2,048.9 $ 2,073.8 Transaction and portfolio advisory fees, net and other
Slide 22: 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 $4.2 billion at March 31, 2024 • Balance sheet cash totaled $1.3 billion as of March 3
Slide 23: AUM and Fee-earning AUM Roll Forward
AUM and Fee-earning AUM Roll Forward Total AUM Roll Forward in millions Three Months Ended March 31, 2024 Twelve Months Ended March 31, 2024 Global Global Global Private Global Investment Global Private Global Investment Equity Credit Solutions Total Equity Credit Solutions Total Balance, Beginning
Slide 24: Global Private Equity Fund Performance
Global Private Equity Fund Performance REALIZED/PARTIALLY REALIZED TOTAL INVESTMENTS (Reported in Local Currency, mn) INVESTMENTS(5) As of March 31, 2024 As of March 31, 2024 Cumulative Remaining Net Accrued Committed Invested Percent Realized Fair MOIC Gross IRR Net IRR Carry/ Total Fair MOIC Gross
Slide 25: Global Private Equity Fund Performance, continued
Global Private Equity Fund Performance, continued REALIZED/PARTIALLY REALIZED TOTAL INVESTMENTS (Reported in Local Currency, mn) INVESTMENTS(5) As of March 31, 2024 As of March 31, 2024 Cumulative Remaining Net Accrued Committed Invested Percent Realized Fair MOIC Gross IRR Net IRR Carry/ Total Fair
Slide 26: Global Credit Fund Performance (Carry Funds Only)
Global Credit Fund Performance (Carry Funds Only) TOTAL INVESTMENTS ($ mn) As of March 31, 2024 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)(1
Slide 27: Global Investment Solutions Fund Performance
Global Investment Solutions Fund Performance TOTAL INVESTMENTS (Reported in Local Currency, mn) As of March 31, 2024 Cumulative Remaining Net Accrued Vintage Invested Realized Fair Total Fair Gross IRR Net IRR Carry/(Giveback) GLOBAL INVESTMENT SOLUTIONS(22)(26) Year Fund Size Capital (1)(23) Value
Slide 28: Reconciliations & Disclosures
Reconciliations & Disclosures
Slide 29: Reconciliation for Distributable Earnings Per Share (Unaudited)
Reconciliation for Distributable Earnings Per Share (Unaudited) Our estimated DE effective tax rate was 15.4% for Q1 2024, reflecting the impact of tax deductions resulting from the vesting of restricted stock units, the amortization of intangible assets related to acquisitions, and foreign tax cred
Slide 30: Reconciliation of GAAP to Total Segment Information
Reconciliation of GAAP to Total Segment Information (Dollars in millions) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 LTM 1Q'23 LTM 1Q'24 FY'22 FY'23 INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES $ 159.6 $ (70.0) $ 152.2 $ (842.7) $ 120.7 $ 989.4 $ (639.8) $ 1,572.5 $ (600.9) Adjustments: Net unrealized perform
Slide 31: 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, 2023 Year Ended
Slide 32: 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, 2023 Year Ended December 31, 2022 Performance revenues
Slide 33: Reconciliation of GAAP to Total Segment Information, continued
Reconciliation of GAAP to Total Segment Information, continued (Dollars in millions) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 LTM 1Q'23 LTM 1Q'24 FY'22 FY'23 REVENUE RECONCILING ITEMS Unrealized performance and fee related performance revenues $ (20.7) $ (600.5) $ (229.2) $ (196.2) $ (521.6) $ (862.0) $ (1,547
Slide 34: 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) 03/31/24 (Dollars in millions) 03/31/24 ACCRUED PERFORMANCE ALLOCATIONS, NET OF ACCRUED INVESTMEN
Slide 35: GAAP Statement of Operations (Unaudited)
GAAP Statement of Operations (Unaudited) (Dollars in millions, except per share amounts) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 LTM 1Q'23 LTM 1Q'24 FY'22 FY’23 REVENUES Fund management fees $ 500.8 $ 507.8 $ 502.6 $ 532.0 $ 523.6 $ 2,080.4 $ 2,066.0 $ 2,030.1 $ 2,043.2 Incentive fees 19.8 21.0 21.1 31.8 26.2
Slide 36: GAAP Balance Sheet (Unaudited)
GAAP Balance Sheet (Unaudited) As of March 31, 2024 Consolidated Consolidated (Dollars in millions) Operating Entities Funds Eliminations Consolidated ASSETS Cash and cash equivalents $ 1,276.5 $ — $ — $ 1,276.5 Cash and cash equivalents of Consolidated Funds — 426.0 — 426.0 Restricted cash 1.4 — —
Slide 37: 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), which commenced with the first quarter 2023 dividend paid in May 2023. Prior to the first quarter 2023 dividend, our dividend policy for our common stock
Slide 38: Notes, continued
Notes, continued Notes on Assets Under Management (Pages 12-14) (continued) (5) Beginning in Q4’23, the In-Carry Ratio represents Performance Fee-Generating Fair Value divided by Total Performance Fee Eligible Fair Value (as defined above). Prior to Q4’23, this metric represented the percentage of F
Slide 39: Notes, continued
Notes, continued Notes on Fund Performance Tables (Pages 24-27) (1) Represents the original cost of investments since inception of the fund. (2) Represents all realized proceeds since inception of the fund. (3) Represents remaining fair value, before management fees, expenses and carried interest, a
Slide 40: Notes, continued
Notes, continued Notes on Fund Performance Tables (Pages 24-27) (continued) (21) Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: CSP I, CSP II, CEMOF I, CSC, CMP I, CMP II, SASOF