The Carlyle Group Inc. · NASDAQ:CG
The Carlyle — Q4 2024 Earnings Presentation
40 slides from The Carlyle's earnings presentation, Feb 11, 2025
Slide 1: Carlyle Reports Fourth Quarter and Full-Year 2024 Financial Results
Carlyle Reports Fourth Quarter and Full-Year 2024 Financial Results FEBRUARY 11, 2025
Slide 2: Carlyle Reports Fourth Quarter and Full-Year 2024 Financial Results
Carlyle Reports Fourth Quarter and Full-Year 2024 Financial Results WASHINGTON, DC AND NEW YORK, NY – February 11, 2025 – Global investment firm “Carlyle delivered a strong The Carlyle Group Inc. (NASDAQ: CG) today reported its unaudited results for the 2024, meeting every fourth quarter and full-ye
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: Fourth Quarter and Full-Year 2024 Financial Results
Fourth Quarter and Full-Year 2024 Financial Results
Slide 5: Carlyle Fourth Quarter and Full-Year 2024 U.S. GAAP Results
Carlyle Fourth Quarter and Full-Year 2024 U.S. GAAP Results Net income attributable to The Carlyle Group Inc. common stockholders in Q4 2024 was $211 million, and $1.0 billion for FY 2024, or $0.57 and $2.77 per share on a diluted basis, respectively (Dollars in millions, except per share amounts) 4
Slide 6: Carlyle Fourth Quarter and Full-Year 2024 Highlights
Carlyle Fourth Quarter and Full-Year 2024 Highlights • Distributable Earnings (“DE”) were $384 million in Q4 2024 on a pre-tax basis, or $0.92 per common share on a post-tax basis. FY 2024 DE was $1.5 billion, or $3.66 per common share Financial • Fee Related Earnings (“FRE”) were $287 million for Q
Slide 7: Total Segment Operating Results
Carlyle Fourth Quarter and Full-Year 2024 Total Segment Operating Results (Dollars in millions, except per share amounts) 4Q'23 4Q'24 FY'23 FY'24 SEGMENT REVENUES Fund management fees $ 525.1 $ 539.9 $ 2,064.4 $ 2,107.5 Transaction and portfolio advisory fees, net and other 34.6 80.6 80.4 163.6 Fee
Slide 8: Distributable Earnings
Distributable Earnings • Distributable Earnings were $384 million in Q4 2024 and $1.5 billion for FY 2024 • Realized Net Performance Revenues were $78 million in Q4 2024 and $366 million for FY 2024 • Realized Principal Investment Income was $32 million in Q4 2024 and $101 million for FY 2024 Quarte
Slide 9: Fee Related Earnings
Fee Related Earnings • Fee Related Earnings of $287 million in Q4 2024 increased 13% compared to $254 million in Q4 2023. FY 2024 Fee Related Earnings of $1.1 billion increased 29% from $859 million in FY 2023 • FRE margin1 of 44% in Q4 2024 and 46% in 2024 Quarterly FRE and FRE Margin Annual FRE an
Slide 10: Performance Revenues
Performance Revenues • Net Accrued Performance Revenues1 were $2.7 billion as of Q4 2024, which was down modestly from the prior quarter and increased 15% from one year ago, reflecting appreciation across the portfolio, partially offset by the impact of realizations • Realized Net Performance Revenu
Slide 11: Total Assets Under Management
Total Assets Under Management Total Assets Under Management1 of $441 billion at December 31, 2024 increased 4% from one year ago. The increase in 2024 was primarily driven by an 11% increase in Global Investment Solutions attributable to inflows, notably in our AlpInvest Secondaries & Portfolio Fina
Slide 12: Performance Fee Eligible Assets Under Management
Performance Fee Eligible Assets Under Management Performance Fee Eligible AUM4 of $229 billion was up 5% from $218 billion one year ago, primarily driven by inflows in our AlpInvest funds and third Opportunistic Credit fund, as well as 8% appreciation across the carry fund portfolio. FY 2024 inflows
Slide 13: Fee-earning Assets Under Management
Fee-earning Assets Under Management Fee-earning Assets Under Management6 of $304 billion at December 31, 2024 decreased 1% from one year ago, driven by an 8% decrease in Global Private Equity from outflows in funds which charge fees on invested capital and basis stepdowns, largely offset by a 14% in
Slide 14: Key Metrics Activity
Key Metrics Activity • Inflows1 were $14.2 billion in Q4 2024 and $40.8 billion for FY 2024, consisting entirely of fundraising activity which increased 10% from FY 2023. Inflows of $63.5 billion in FY 2023 included $26 billion of closed reinsurance transactions at Fortitude • Deployment2 was $17.6
Slide 15: Segment Highlights
Segment Highlights
Slide 16: Global Private Equity
Global Private Equity • Total AUM was $164 billion as of December 31, 2024, down 3% from the prior quarter as realizations in Q4 2024 more than offset Inflows $123BN $24 of $2.3 billion. Inflows in Q4 2024 included additional commitments Fair Value raised in our tenth U.S. real estate fund. Total AU
Slide 17: Global Credit
Global Credit • Total AUM was $192 billion as of December 31, 2024, a 1% decrease quarter over quarter, as market activity and outflows more than offset Inflows of $8.0 billion in Q4 2024. Inflows in Q4 2024 included the final closing in our third Opportunistic Credit fund and the closing $174BN $65
Slide 18: Global Investment Solutions
Global Investment Solutions • Total AUM was $85 billion as of December 31, 2024, a 2% increase quarter over quarter, as Inflows of $3.9 billion and 3% appreciation more than offset realizations and the impact of FX translation in Q4 2024. Inflows in Q4 2024 were driven by our AlpInvest Secondaries &
Slide 19: Supplemental Details
Supplemental Details
Slide 20: Total Segment Results
Carlyle Fourth Quarter and Full-Year 2024 Total Segment Results 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 FY'23 FY'24 (Dollars in millions, except per share amounts) SEGMENT REVENUES Fund management fees $ 525.1 $ 515.6 $ 525.5 $ 526.5 $ 539.9 $ 2,064.4 $ 2,107.5 Transaction and portfolio advisory fees, net and
Slide 21: Total Segment Balance Sheet Highlights
Total Segment Balance Sheet Highlights • Balance sheet assets attributable to Carlyle stockholders, including net cash and cash equivalents, net accrued performance revenues and investments, net of debt obligations totaled $4.9 billion at December 31, 2024 • Balance sheet cash totaled $1.3 billion a
Slide 22: AUM and Fee-earning AUM Roll Forward
AUM and Fee-earning AUM Roll Forward Total AUM Roll Forward Unaudited, in millions Three Months Ended December 31, 2024 Twelve Months Ended December 31, 2024 Global Global Global Global Private Global Investment Private Global Investment ($mn) Equity Credit Solutions Total Equity Credit Solutions To
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 December 31, 2024 As of December 31, 2024 Cumulative Remaining Net Accrued Committed Invested Percent Realized Fair Gross IRR Net IRR Carry/ Total Fair Gross IRR
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 December 31, 2024 As of December 31, 2024 Cumulative Remaining Net Accrued Committed Invested Percent Realized Fair Gross IRR Net IRR Carry/ Total Fai
Slide 25: Global Credit Fund Performance
Global Credit Fund Performance CARRY FUNDS TOTAL INVESTMENTS ($ mn) As of December 31, 2024 Cumulative Committed Invested Percent Realized Remaining Fair Gross IRR Net IRR Net Accrued Fund (Fee Initiation Date / Stepdown Date) (28) Capital (29) Capital (19) Invested Value (2) Value (3) MOIC (4) (6)(
Slide 26: Global Investment Solutions Fund Performance
Global Investment Solutions Fund Performance TOTAL INVESTMENTS (Reported in Local Currency, mn) As of December 31, 2024 Cumulative Net Accrued Invested Remaining Total Fair Carry/ Vintage Capital Realized Fair Value Gross IRR Net IRR (Giveback) Global Investment Solutions (22)(26) Year Fund Size (1)
Slide 27: Reconciliations and Disclosures
Reconciliations and Disclosures
Slide 28: Reconciliation for Distributable Earnings Per Share (Unaudited)
Reconciliation for Distributable Earnings Per Share (Unaudited) Our estimated DE effective tax rate was 13.8% for FY 2024, reflecting the impact of tax deductions resulting from the vesting of restricted stock units as well as the recovery of certain tax basis step-ups and the amortization of intang
Slide 29: Reconciliation of GAAP to Total Segment Information
Reconciliation of GAAP to Total Segment Information (Dollars in millions) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 FY'22 FY'23 FY'24 INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES $ (842.7) $ 120.7 $ 218.8 $ 788.8 $ 265.4 $ 1,572.5 $ (600.9) $ 1,393.7 Adjustments: Net unrealized performance and fee related pe
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 December 31, 2023 Year End
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 Items 1 Segments Consolidated Items 1 Segments Three Months Ended December 31, 2023 Year Ended December 31, 2022 Performance rev
Slide 32: Reconciliation of GAAP to Total Segment Information, continued
Reconciliation of GAAP to Total Segment Information, continued (Dollars in millions) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 FY'22 FY'23 FY'24 REVENUE RECONCILING ITEMS Unrealized performance and fee related performance revenues $ (196.2) $ (521.6) $ 47.4 $ 1,495.1 $ 11.0 $ (142.5) $ (1,046.6) $ 1,031.9 Unrea
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) 12/31/24 (Dollars in millions) 12/31/23 09/30/24 12/31/24 INVESTMENTS, EXCLUDING ACCRUED PERFORMA
Slide 34: GAAP Statement of Operations (Unaudited)
GAAP Statement of Operations (Unaudited) (Dollars in millions, except per share amounts) 4Q'23 1Q’24 2Q’24 3Q’24 4Q'24 FY'22 FY'23 FY'24 REVENUES Fund management fees $ 532.0 $ 523.6 $ 534.4 $ 532.7 $ 597.4 $ 2,030.1 $ 2,043.2 $ 2,188.1 Incentive fees 31.8 26.2 31.3 38.7 37.3 63.7 93.7 133.5 Investm
Slide 35: GAAP Balance Sheet (Unaudited)
GAAP Balance Sheet (Unaudited) As of December 31, 2024 Consolidated Consolidated (Dollars in millions) Operating Entities Funds Eliminations Consolidated ASSETS Cash and cash equivalents $ 1,266.0 $ — $ — $ 1,266.0 Cash and cash equivalents of Consolidated Funds — 830.4 — 830.4 Restricted cash 0.5 —
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) (4) Performance Fee Eligible AUM represents the AUM of funds for which we are entitled to receive performance allocations, inclusive of the fair value of investments in those funds (which we refer to as “Performance Fee Elig
Slide 38: Notes, continued
Notes, continued Notes on Total AUM and Fee-earning AUM Roll Forwards (Page 22) (1) Inflows generally reflects the impact of gross fundraising as well as closed reinsurance transactions at Fortitude and corporate acquisitions during the period, if any. For funds or vehicles denominated in foreign cu
Slide 39: Notes, continued
Notes, continued Notes on Fund Performance Tables (Pages 23-26) (continued) (7) Net Internal Rate of Return (“Net IRR”) represents an annualized time-weighted return on Limited Partner invested capital, based on contributions, distributions and unrealized fair value as of the reporting date, after t
Slide 40: Notes, continued
Notes, continued Notes on Fund Performance Tables (Pages 23-26) (continued) (25) Includes ASF VIII - SMAs, ACF IX - SMAs, AlpInvest Strategic Portfolio Finance II, AlpInvest Atom Fund, AlpInvest Atom Fund II, all mezzanine investment portfolios, all ‘clean technology’ private equity investment portf