The Carlyle Group Inc. · NASDAQ:CG
The Carlyle — Q3 2024 Earnings Presentation
40 slides from The Carlyle's earnings presentation, Nov 7, 2024
Slide 1: Carlyle Reports Third Quarter 2024 Financial Results
Carlyle Reports Third Quarter 2024 Financial Results NOVEMBER 7, 2024
Slide 2: Carlyle Reports Third Quarter 2024 Financial Results
Carlyle Reports “Carlyle’s record third quarter results reflect the impact of Third Quarter 2024 strategic actions we have taken over the past eighteen months. Financial Results These actions, combined with a pick-up in investment activity WASHINGTON, D.C. AND NEW YORK – November 7, 2024 – Global in
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: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results
Slide 5: Carlyle Third Quarter 2024 U.S. GAAP Results
Carlyle Third Quarter 2024 U.S. GAAP Results Net income attributable to The Carlyle Group Inc. common stockholders was $596 million for Q3 2024, or $1.63 per share on a diluted basis (Dollars in millions, except per share amounts) 3Q'23 3Q'24 YTD 3Q'23 YTD 3Q'24 REVENUES Fund management fees $ 502.6
Slide 6: Carlyle Third Quarter 2024 Highlights
Carlyle Third Quarter 2024 Highlights • Distributable Earnings (“DE”) of $367 million for Q3 2024 on a pre-tax basis, or $0.95 per common share on a post-tax basis, and $1.1 billion, or $2.74 per common share YTD Financial • Fee Related Earnings (“FRE”) of $278 million for Q3 2024 and $817 million Y
Slide 7: Carlyle Third Quarter 2024 Total Segment Operating Results
Carlyle Third Quarter 2024 Total Segment Operating Results (Dollars in millions, except per share amounts) 3Q'23 3Q'24 YTD 3Q'23 YTD 3Q'24 SEGMENT REVENUES Fund management fees $ 518.1 $ 526.5 $ 1,539.3 $ 1,567.6 Transaction and portfolio advisory fees, net and other 11.2 27.4 45.8 83.0 Fee related
Slide 8: Distributable Earnings
Distributable Earnings • Distributable Earnings were $367 million in Q3 2024 and $1.1 billion YTD • Realized Net Performance Revenues were $91 million in Q3 2024 and $288 million YTD • Realized Principal Investment Income was $9 million in Q3 2024 and $69 million YTD Quarterly Distributable Earnings
Slide 9: Fee Related Earnings
Fee Related Earnings • Fee Related Earnings of $278 million in Q3 2024 increased 36% compared to $205 million in Q3 2023. Fee Related Earnings of $817 million YTD were 35% higher compared to $605 million in the prior YTD period • FRE margin1 of 47% in Q3 2024 increased from 37% in Q3 2023. FRE margi
Slide 10: Investment Performance
Investment Performance CARRY FUNDS • Carry fund appreciation was 3% across our investment portfolio in Appreciation (Depreciation) the third quarter, with appreciation of 8% on an LTM Fair Value of 3Q'24 YTD 3Q'24 LTM 3Q'24 basis Investments ($ bn) Total Carry Funds $205 3% 7% 8% • Our Corporate Pri
Slide 11: Performance Revenues
Performance Revenues • Net Accrued Performance Revenues1 were $2.8 billion as of Q3 2024, up 28% quarter-over-quarter, and up 17% from Q4 2023, primarily reflecting appreciation across the portfolio, partially offset by the impact of realizations • Realized Net Performance Revenues were $91 million
Slide 12: Total Assets Under Management
Total Assets Under Management Total Assets Under Management1 of $447 billion at September 30, 2024 increased 3% from the prior quarter due to Q3 2024 appreciation and inflows, and were partially offset by realizations and outflows. Total Assets Under Management was up 17% from one year ago Total AUM
Slide 13: Performance Fee Eligible Assets Under Management
Performance Fee Eligible Assets Under Management Performance Fee Eligible AUM4 of $231 billion was up 4% quarter-over-quarter as appreciation, primarily driven by strong performance in our U.S. Buyout funds, and new performance fee eligible capital raised, were partially offset by realizations large
Slide 14: Fee-earning Assets Under Management
Fee-earning Assets Under Management Fee-earning Assets Under Management6 of $314 billion at September 30, 2024 were up 2% from the prior quarter due to an increase in the fair value of assets covered by the Fortitude strategic advisory services agreement, deployment in Global Credit, and Global Inve
Slide 15: Key Metrics Activity
Key Metrics Activity • Fundraising was $8.8 billion in Q3 2024, driven by additional commitments raised in our latest U.S. Real Estate fund, as well as capital raised across our Global Credit and Global Investment Solutions segments. Fundraising of $43.5 billion for the LTM increased 73% compared to
Slide 16: Segment Highlights
Segment Highlights
Slide 17: Global Private Equity
Global Private Equity • Total AUM was $169 billion as of September 30, 2024, up 3% from the prior quarter as Q3 2024 Fundraising of $3.7 billion and portfolio appreciation $24 $127BN more than offset realizations. Fundraising in Q3 2024 was primarily driven by our latest U.S. Real Estate fund. Total
Slide 18: Global Credit
Global Credit • Total AUM was $194 billion as of September 30, 2024, up 2% quarter-over- quarter, as market activity and Fundraising of $2.8 billion more than offset $14 outflows. Fundraising activity reflects capital raised across the platform, notably in our Direct Lending and Opportunistic Credit
Slide 19: Global Investment Solutions
Global Investment Solutions • Total AUM was $84 billion as of September 30, 2024, a 4% increase quarter- over-quarter. Fundraising of $2.3 billion in Q3 2024, particularly in our Secondaries & Portfolio Finance strategy and our CAPM retail strategy, as well as 2% segment appreciation, exceeded outfl
Slide 20: Supplemental Details
Supplemental Details
Slide 21: Carlyle Third Quarter 2024 Total Segment Results
Carlyle Third Quarter 2024 Total Segment Results (Dollars in millions, except per share amounts) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 YTD 3Q'23 YTD 3Q'24 SEGMENT REVENUES Fund management fees $ 518.1 $ 525.1 $ 515.6 $ 525.5 $ 526.5 $ 1,539.3 $ 1,567.6 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 $5.0 billion at September 30, 2024 • Balance sheet cash totaled $1.4 billion as of Sep
Slide 23: AUM and Fee-earning AUM Roll Forward
AUM and Fee-earning AUM Roll Forward Total AUM Roll Forward in millions Three Months Ended September 30, 2024 Twelve Months Ended September 30, 2024 Global Global Global Private Global Investment Global Private Global Investment Equity Credit Solutions Total Equity Credit Solutions Total Balance, Be
Slide 24: Global Private Equity Fund Performance
Global Private Equity Fund Performance REALIZED/PARTIALLY REALIZED TOTAL INVESTMENTS (Reported in Local Currency, mn) INVESTMENTS(5) As of September 30, 2024 As of September 30, 2024 Cumulative Remaining Net Accrued Committed Invested Percent Realized Fair MOIC Gross IRR Net IRR Carry/ Total Fair MO
Slide 25: Global Private Equity Fund Performance, continued
Global Private Equity Fund Performance, continued REALIZED/PARTIALLY REALIZED TOTAL INVESTMENTS (Reported in Local Currency, mn) INVESTMENTS(5) As of September 30, 2024 As of September 30, 2024 Cumulative Remaining Net Accrued Committed Invested Percent Realized Fair MOIC Gross IRR Net IRR Carry/ To
Slide 26: Global Credit Fund Performance (Carry Funds Only)
Global Credit Fund Performance (Carry Funds Only) TOTAL INVESTMENTS ($ mn) As of September 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) (
Slide 27: Global Investment Solutions Fund Performance
Global Investment Solutions Fund Performance TOTAL INVESTMENTS (Reported in Local Currency, mn) As of September 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) Va
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 7.3% for Q3 2024, 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 30: Reconciliation of GAAP to Total Segment Information
Reconciliation of GAAP to Total Segment Information (Dollars in millions) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 YTD 3Q'23 YTD 3Q'24 FY'22 FY'23 INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES $ 152.2 $ (842.7) $ 120.7 $ 218.8 $ 788.8 $ 241.8 $ 1,128.3 $ 1,572.5 $ (600.9) Adjustments: Net unrealized performa
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 September 30, 2023 Year En
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 September 30, 2023 Year Ended December 31, 2022 Performance reve
Slide 33: Reconciliation of GAAP to Total Segment Information, continued
Reconciliation of GAAP to Total Segment Information, continued (Dollars in millions) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 YTD 3Q'23 YTD 3Q'24 FY'22 FY'23 REVENUE RECONCILING ITEMS Unrealized performance and fee related performance revenues $ (229.2) $ (196.2) $ (521.6) $ 47.4 $ 1,495.1 $ (850.4) $ 1,020.9
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) 09/30/24 (Dollars in millions) 12/31/23 06/30/24 09/30/24 ACCRUED PERFORMANCE ALLOCATIONS, NET OF
Slide 35: GAAP Statement of Operations (Unaudited)
GAAP Statement of Operations (Unaudited) (Dollars in millions, except per share amounts) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 YTD 3Q'23 YTD 3Q'24 FY'22 FY’23 REVENUES Fund management fees $ 502.6 $ 532.0 $ 523.6 $ 534.4 $ 532.7 $ 1,511.2 $ 1,590.7 $ 2,030.1 $ 2,043.2 Incentive fees 21.1 31.8 26.2 31.3 38.7
Slide 36: GAAP Balance Sheet (Unaudited)
GAAP Balance Sheet (Unaudited) As of September 30, 2024 Consolidated Consolidated (Dollars in millions) Operating Entities Funds Eliminations Consolidated ASSETS Cash and cash equivalents $ 1,376.8 $ — $ — $ 1,376.8 Cash and cash equivalents of Consolidated Funds — 488.5 — 488.5 Restricted cash 2.1
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