The Carlyle Group Inc. · NASDAQ:CG
The Carlyle — Q2 2024 Earnings Presentation
40 slides from The Carlyle's earnings presentation, Aug 5, 2024
Slide 1: Carlyle Reports Second Quarter 2024 Financial Results
Carlyle Reports Second Quarter 2024 Financial Results AUGUST 5, 2024 Please note that this version reflects an adjustment to the Global Credit fund performance table on page 26 from our earnings release previously issued on August 5, 2024. No changes were made to reported earnings.
Slide 2: Carlyle Reports Second Quarter 2024 Financial Results
Carlyle Reports “The first half of 2024 reflects strong momentum Second Quarter 2024 across our business, with activity accelerating with Financial Results improved market sentiment. NEW YORK AND WASHINGTON – August 5, 2024 – Global investment firm The This momentum is reflected Carlyle Group Inc. (
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: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results
Slide 5: Carlyle Second Quarter 2024 U.S. GAAP Results
Carlyle Second Quarter 2024 U.S. GAAP Results Net income attributable to The Carlyle Group Inc. common stockholders was $148 million for Q2 2024, or $0.40 per share on a diluted basis (Dollars in millions, except per share amounts) 2Q'23 2Q'24 YTD 2Q'23 YTD 2Q'24 REVENUES Fund management fees $ 507.
Slide 6: Carlyle Second Quarter 2024 Highlights
Carlyle Second Quarter 2024 Highlights • Distributable Earnings (“DE”) of $343 million for Q2 2024 on a pre-tax basis, or $0.78 per common share on a post-tax basis, and $775 million, or $1.79 per common share YTD Financial • Fee Related Earnings (“FRE”) of $273 million for Q2 2024 and $539 million
Slide 7: Carlyle Second Quarter 2024 Total Segment Operating Results
Carlyle Second Quarter 2024 Total Segment Operating Results (Dollars in millions, except per share amounts) 2Q'23 2Q'24 YTD 2Q'23 YTD 2Q'24 SEGMENT REVENUES Fund management fees $ 515.0 $ 525.5 $ 1,021.2 $ 1,041.1 Transaction and portfolio advisory fees, net and other 18.2 28.9 34.6 55.6 Fee related
Slide 8: Distributable Earnings
Distributable Earnings • Distributable Earnings were $343 million in Q2 2024 and $775 million YTD • Realized Net Performance Revenues were $56 million in Q2 2024 and $198 million YTD • Realized Principal Investment Income was $27 million in Q2 2024 and $60 million YTD Quarterly Distributable Earning
Slide 9: Fee Related Earnings
Fee Related Earnings • Fee Related Earnings of $273 million in Q2 2024 increased 32% compared to $207 million in Q2 2023. Fee Related Earnings of $539 million YTD were 35% higher compared to $401 million in the prior YTD period • FRE margin1 of 46% in Q2 2024 increased from 34% in Q2 2023. FRE margi
Slide 10: Investment Performance
Investment Performance CARRY FUNDS • Carry fund appreciation was 1% across our investment portfolio in Appreciation (Depreciation) the second quarter, with appreciation of 7% on an LTM Fair Value of 2Q'24 YTD 2Q'24 LTM 2Q'24 basis Investments ($ bn) Total Carry Funds $198 1% 3% 7% • Our Global Credi
Slide 11: Performance Revenues
Performance Revenues • Net Accrued Performance Revenues1 were $2.2 billion as of Q2 2024, generally flat quarter-over-quarter, and down 9% from Q4 2023 primarily reflecting the impact of realizations • Realized Net Performance Revenues were $56 million in Q2 2024 and $198 million YTD – Q2 2024 Reali
Slide 12: Total Assets Under Management
Total Assets Under Management Total Assets Under Management1 of $435 billion at June 30, 2024 increased 2% from the prior quarter as Q2 2024 inflows and appreciation were partially offset by realizations and outflows. Total Assets Under Management was up 13% from one year ago Total AUM by Segment To
Slide 13: Performance Fee Eligible Assets Under Management
Performance Fee Eligible Assets Under Management Performance Fee Eligible AUM4 of $223 billion was up 3% quarter-over-quarter as new performance fee eligible capital raised, notably in our real estate funds and AlpInvest Secondaries strategy, was partially offset by realizations primarily in our GPE
Slide 14: Fee-earning Assets Under Management
Fee-earning Assets Under Management Fee-earning Assets Under Management6 of $307 billion at June 30, 2024 were up 1% from the prior quarter due to capital deployment in Global Credit, the activation of fees in our sixth Asia Buyout fund, and fee-paying capital raised in our AlpInvest funds, which wa
Slide 15: Key Metrics Activity
Key Metrics Activity • Fundraising was $12.4 billion in Q2 2024, driven by commitments raised in Real Estate, the closing of four new CLOs, and additional capital raised for our AlpInvest Secondaries & Portfolio Finance strategy. Fundraising of $40.9 billion for the LTM increased 64% compared to the
Slide 16: Segment Highlights
Segment Highlights
Slide 17: Global Private Equity
Global Private Equity • Total AUM was $164 billion as of June 30, 2024, up 3% from the prior $123BN $25 quarter as Q2 2024 Fundraising of $5.2 billion and portfolio appreciation more than offset realizations. Fundraising in Q2 2024 was Fair Value primarily driven by our Real Estate strategy. Total A
Slide 18: Global Credit
Global Credit • Total AUM was $190 billion as of June 30, 2024, up 2% quarter-over- quarter, as Fundraising of $5.0 billion more than offset outflows. $13 Fundraising activity during the quarter included the closing of four new CLOs, capital raised in our third credit opportunities fund, and $173BN
Slide 19: Global Investment Solutions
Global Investment Solutions • Total AUM was $81 billion as of June 30, 2024, a 1% increase quarter-over- quarter, as Fundraising of $2.3 billion in Q2 2024, particularly in our Secondaries & Portfolio Finance strategy, exceeded outflows and the impact of (1)% segment depreciation for the period. Tot
Slide 20: Supplemental Details
Supplemental Details
Slide 21: Carlyle Second Quarter 2024 Total Segment Results
Carlyle Second Quarter 2024 Total Segment Results (Dollars in millions, except per share amounts) 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 YTD 2Q'23 YTD 2Q'24 SEGMENT REVENUES Fund management fees $ 515.0 $ 518.1 $ 525.1 $ 515.6 $ 525.5 $ 1,021.2 $ 1,041.1 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 $4.0 billion at June 30, 2024 • Balance sheet cash totaled $0.9 billion as of June 30,
Slide 23: AUM and Fee-earning AUM Roll Forward
AUM and Fee-earning AUM Roll Forward Total AUM Roll Forward in millions Three Months Ended June 30, 2024 Twelve Months Ended June 30, 2024 Global Global Global Private Global Investment Global Private Global Investment Equity Credit Solutions Total Equity Credit Solutions Total Balance, Beginning of
Slide 24: Global Private Equity Fund Performance
Global Private Equity Fund Performance REALIZED/PARTIALLY REALIZED TOTAL INVESTMENTS (Reported in Local Currency, mn) INVESTMENTS(5) As of June 30, 2024 As of June 30, 2024 Cumulative Remaining Net Accrued Committed Invested Percent Realized Fair MOIC Gross IRR Net IRR Carry/ Total Fair MOIC Gross I
Slide 25: Global Private Equity Fund Performance, continued
Global Private Equity Fund Performance, continued REALIZED/PARTIALLY REALIZED TOTAL INVESTMENTS (Reported in Local Currency, mn) INVESTMENTS(5) As of June 30, 2024 As of June 30, 2024 Cumulative Remaining Net Accrued Committed Invested Percent Realized Fair MOIC Gross IRR Net IRR Carry/ Total Fair M
Slide 26: Global Credit Fund Performance (Carry Funds Only)
Global Credit Fund Performance (Carry Funds Only) TOTAL INVESTMENTS ($ mn) As of June 30, 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)(12
Slide 27: Global Investment Solutions Fund Performance
Global Investment Solutions Fund Performance TOTAL INVESTMENTS (Reported in Local Currency, mn) As of June 30, 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 18.8% for Q2 2024, reflecting the impact of tax deductions resulting from the vesting of restricted stock units, the amortization of intangible assets related to acquisitions, partially offset by
Slide 30: Reconciliation of GAAP to Total Segment Information
Reconciliation of GAAP to Total Segment Information (Dollars in millions) 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 YTD 2Q'23 YTD 2Q'24 FY'22 FY'23 INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES $ (70.0) $ 152.2 $ (842.7) $ 120.7 $ 218.8 $ 89.6 $ 339.5 $ 1,572.5 $ (600.9) Adjustments: Net unrealized performanc
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 June 30, 2023 Year Ended D
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 June 30, 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) 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 YTD 2Q'23 YTD 2Q'24 FY'22 FY'23 REVENUE RECONCILING ITEMS Unrealized performance and fee related performance revenues $ (600.5) $ (229.2) $ (196.2) $ (521.6) $ 47.4 $ (621.2) $ (474.2)
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) 06/30/24 (Dollars in millions) 06/30/24 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) 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 YTD 2Q'23 YTD 2Q'24 FY'22 FY’23 REVENUES Fund management fees $ 507.8 $ 502.6 $ 532.0 $ 523.6 $ 534.4 $ 1,008.6 $ 1,058.0 $ 2,030.1 $ 2,043.2 Incentive fees 21.0 21.1 31.8 26.2 31.3
Slide 36: GAAP Balance Sheet (Unaudited)
GAAP Balance Sheet (Unaudited) As of June 30, 2024 Consolidated Consolidated (Dollars in millions) Operating Entities Funds Eliminations Consolidated ASSETS Cash and cash equivalents $ 914.8 $ — $ — $ 914.8 Cash and cash equivalents of Consolidated Funds — 1,047.5 — 1,047.5 Restricted cash 2.3 — — 2
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