The Carlyle Group Inc. · NASDAQ:CG
The Carlyle — Carlyle Group — Q1 2020 Earnings Presentation
40 slides from The Carlyle's earnings presentation, Apr 30, 2020
Slide 1: The Carlyle Group Reports First Quarter 2020 Financial Results
THE CARLYLE GROUP REPORTS FIRST QUARTER 2020 FINANCIAL RESULTS APRIL 30, 2020 EXHIBIT 99.2
Slide 2: The Carlyle Group Reports First Quarter 2020 Financial Results
R-8 G-51 R-0 B-94 G-74 08335E The Carlyle Group Reports First Quarter B-13 6 R-9 R-11 G-102 2020 Financial Results 8 B-112 G-92 096670 B-15 WASHINGTON, DC – APRIL 30, 2020 – Global investment firm The Carlyle Group 0 R-23 R-88 G-234 Inc. (NASDAQ: CG) today reported its unaudited results for the firs
Slide 3: Removal of forward financial guidance; Forward Looking Statements
R-8 G-51 R-0 B-94 G-74 08335E The Carlyle Group Reports FourthFirst Quarter Quarter and B-13 6 R-9 R-11 G-102 F2020ul l FinancialYear 2019 Results Fi nanci al Resul ts 8 B-112 G-92 096670 B-15 Removal of forward financial guidance 0 R-23 R-88 G-234 Given the uncertain nature of the impact of the nov
Slide 4: First Quarter 2020 Earnings
R-0 R-8 G-74 G-51 B-13 B-94 6 R-9 R-11 G-10 8 2 G-92 B-11 B-15 R-232 0 4 R-88 G - G-15 234 9 B-23 B-16 R-20 4 5 8 R-13 G-23 6 2 G-18 B-24 0 R-977 R-14B-83 G-16 0 1 G-14 B-22 1 R-234 OldB-15 R-12 7 Color2 0 G-21 s G-16 7 9 B-15 R-14 B-22 7 First Quarter 2020 Earnings R-16 7 2 G-19 3 5 G-14 B-19 3 7 B
Slide 5: Carlyle First Quarter 2020 U.S. GAAP Results
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Carlyle First Quarter 2020 U.S. GAAP Results 8 B-112 G-92 096670 B-15 • Net income (loss) attributable to The Carlyle Group Inc. common stockholders in Q1 2020 was $(612.0) 0 R-23 R-88 G-234 million G-15 B-234 (Dollars in millions, except per share
Slide 6: Carlyle First Quarter 2020 Highlights
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Carlyle First Quarter 2020 Highlights 8 B-112 G-92 096670 B-15 0 R-23 R-88 G-234 • Distributable Earnings (“DE”) of $175 million for Q1 2020 on a pre-tax basis, or $0.48 per common G-15 B-234 9 EAEAEA share on a post-tax basis. LTM DE of $721 milli
Slide 7: COVID-19 Response - Supporting Our People, Portfolio Companies and Communities
R-8 G-51 R-0 B-94 G-74 08335E COVID-19 Response - B-13 6 R-9 R-11 G-102 Supporting Our People, Portfolio Companies and Communities 8 B-112 G-92 096670 B-15 0 R-23 R-88 G-234 • Providing extensive remote capabilities for 100% of workforce of more than 1,775 employees across 32 offices across six cont
Slide 8: Carlyle First Quarter 2020 Total Segment Operating Results
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Carlyle First Quarter 2020 Total Segment Operating Results 8 B-112 G-92 096670 B-15 (Dollars in millions, except per share amounts) 1Q'19 1Q'20 LTM 1Q'19 LTM 1Q'20 0 R-23 R-88 SEGMENT REVENUES G-234 G-15 B-234 Fund management fees $ 381.6 $ 381.5 $
Slide 9: Distributable Earnings
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Distributable Earnings 8 B-112 G-92 096670 B-15 0 R-23 • Distributable Earnings were $175 million in Q1 2020 and $721 million for the LTM R-88 G-234 G-15 B-234 – Fee Related Earnings accounted for 74% of Distributable Earnings in the quarter and 66
Slide 10: Fee Related Earnings
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Fee Related Earnings 8 B-112 G-92 096670 • Fee Related Earnings were $129 million in Q1 2020, up from $103 million in Q1 2019 with the increase largely due to the positive impact of a B-15 0 R-23 $30 million recovery of litigation costs in Q1 2020
Slide 11: Performance Revenues
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Performance Revenues 8 B-112 G-92 096670 1 B-15 • Net Accrued Performance Revenues were $1.2 billion as of Q1 2020, down (34)% from one year ago 0 R-23 R-88 G-234 • Realized Net Performance Revenues were $48 million in Q1 2020 and $205 million for
Slide 12: Total Assets Under Management
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Total Assets Under Management 8 B-112 G-92 096670 B-15 1 0 R-23 • Total Assets Under Management of $217 billion at March 31, 2020 decreased (3)% from the prior R-88 G-234 G-15 B-234 quarter and (2)% from one year ago 9 EAEAEA B-16 • Available Capit
Slide 13: Fair Value of Investments
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Fair Value of Investments 8 B-112 G-92 096670 B-15 4 0 R-23 • Fair Value of Investments was $143 billion at March 31, 2020, down slightly from one year ago R-88 G-234 G-15 B-234 • Fair value in traditional carry funds of $76 billion was down 5% fro
Slide 14: Fee-earning Assets Under Management
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Fee-earning Assets Under Management 8 B-112 G-92 096670 7 B-15 • Fee-earning Assets Under Management of $158 billion decreased (1)% compared to one year ago, 0 R-23 R-88 G-234 driven by a (6)% decrease in Real Assets, partially offset by a 4% incre
Slide 15: Key Metrics Activity
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Key Metrics Activity 8 B-112 G-92 096670 B-15 0 R-23 • Fundraising was $7.5 billion in Q1 2020, and $20.0 billion for the LTM. Q1 2020 fundraising was driven R-88 G-234 G-15 B-234 by activity in Investment Solutions and Global Credit 9 EAEAEA B-16
Slide 16: Segment Highlights
R-0 R-8 G-74 G-51 B-13 B-94 6 R-9 R-11 G-10 8 2 G-92 B-11 B-15 R-232 0 4 R-88 G - G-15 234 9 B-23 B-16 R-20 4 5 8 R-13 G-23 6 2 G-18 B-24 0 R-977 R-14B-83 G-16 0 1 G-14 B-22 1 R-234 OldB-15 R-12 7 Color2 0 G-21 s G-16 7 9 B-15 R-14 B-22 7 Segment Highlights R-16 7 2 G-19 3 5 G-14 B-19 3 7 B-18 R-147
Slide 17: Corporate Private Equity
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Corporate Private Equity 8 B-112 G-92 096670 • Fee Related Earnings of $77 million in Q1 2020 were up from $58 million in Q1 2019, primarily driven by B-15 lower G&A expenses in the current quarter (which included $15 million in litigation recovery
Slide 18: Real Assets
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Real Assets 8 B-112 G-92 096670 • Fee Related Earnings of $24 million in Q1 2020 were down from $26 million in Q1 2019 primarily driven by lower B-15 transaction fees and higher general & administrative expenses in Q1 2020 (which also included $6 m
Slide 19: Global Credit
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Global Credit 8 B-112 G-92 096670 • Fee Related Earnings of $19 million in Q1 2020 increased from $13 million in Q1 2019, primarily driven by lower general & Direct B-15 administrative expenses (which included $6 million in litigation recovery cont
Slide 20: Investment Solutions
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Investment Solutions 8 B-112 G-92 096670 • Fee Related Earnings of $8 million in Q1 2020 were up from $7 million in Q1 2019 primarily driven by lower B-15 general & administrative expenses in the current quarter (which included $3 million in litiga
Slide 21: Supplemental Details
R-0 R-8 G-74 G-51 B-13 B-94 6 R-9 R-11 G-10 8 2 G-92 B-11 B-15 R-232 0 4 R-88 G - G-15 234 9 B-23 B-16 R-20 4 5 8 R-13 G-23 6 2 G-18 B-24 0 R-977 R-14B-83 G-16 0 1 G-14 B-22 1 R-234 OldB-15 R-12 7 Color2 0 G-21 s G-16 7 9 B-15 R-14 B-22 7 Supplemental Details R-16 7 2 G-19 3 5 G-14 B-19 3 7 B-18 R-1
Slide 22: Carlyle First Quarter 2020 Total Segment Results
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Carlyle First Quarter 2020 Total Segment Results 8 B-112 G-92 096670 B-15 0 R-23 (Dollars in millions, except per share amounts) 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 LTM 1Q'19 LTM 1Q'20 R-88 G-234 G-15 B-234 SEGMENT REVENUES 9 EAEAEA Fund management fees
Slide 23: Total Segment Balance Sheet Highlights
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Total Segment Balance Sheet Highlights 8 B-112 G-92 096670 B-15 0 R-23 • Balance sheet assets attributable to Carlyle stockholders (including net cash and equivalents, net R-88 G-234 accrued performance revenue and investments) totaled $1.6 billion
Slide 24: AUM and Fee-earning AUM Roll Forward
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 AUM and Fee-earning AUM Roll Forward 8 B-112 G-92 096670 B-15 0 R-23 Total AUM Roll Forward (Unaudited) R-88 G-234 G-15 B-234 9 Three Months Ended March 31, 2020 Twelve Months Ended March 31, 2020 EAEAEA ($mm) B-16 5 R-208 Corporate Corporate R-13
Slide 25: Corporate Private Equity Fund Performance
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Corporate Private Equity Fund Performance 8 B-112 G-92 096670 B-15 0 TOTAL INVESTMENTS REALIZED/PARTIALLY REALIZED INVESTMENTS(7) R-23 (Reported in Local Currency, mm) R-88 G-234 As of March 31, 2020 As of March 31, 2020 G-15 B-234 Investment 9 Per
Slide 26: Real Assets Fund Performance
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Real Assets Fund Performance 8 B-112 G-92 096670 B-15 TOTAL INVESTMENTS REALIZED/PARTIALLY REALIZED INVESTMENTS(7) 0 R-23 (Reported in Local Currency, mm) R-88 As of March 31, 2020 As of March 31, 2020 G-234 G-15 Investment B-234 Period End/ Cumula
Slide 27: Global Credit Fund Performance (Carry Funds Only)
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Global Credit Fund Performance (Carry Funds Only) 8 B-112 G-92 096670 B-15 TOTAL INVESTMENTS 0 R-23 ($mm) As of March 31, 2020 R-88 G-234 G-15 Investment B-234 Period End/ Cumulative LTM Realized 9 EAEAEA Fund Fee Committed Invested Realized Remain
Slide 28: Investment Solutions Fund Performance
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Investment Solutions Fund Performance 8 B-112 G-92 096670 B-15 TOTAL INVESTMENTS (Reported in Local Currency, mm) 0 R-23 As of March 31, 2020 R-88 G-234 INVESTMENT SOLUTIONS(27) Cumulative Invested Realized Remaining Fair Total Fair Fund Vintage Fu
Slide 29: Reconciliation & Disclosures
R-0 R-8 G-74 G-51 B-13 B-94 6 R-9 R-11 G-10 8 2 G-92 B-11 B-15 R-232 0 4 R-88 G - G-15 234 9 B-23 B-16 R-20 4 5 8 R-13 G-23 6 2 G-18 B-24 0 R-977 R-14B-83 G-16 0 1 G-14 B-22 1 R-234 OldB-15 R-12 7 Color2 0 G-21 s G-16 7 9 B-15 R-14 B-22 7 Reconciliation & Disclosures R-16 7 2 G-19 3 5 G-14 B-19 3 7
Slide 30: Reconciliation for Distributable Earnings Per Share
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Reconciliation for Distributable Earnings Per Share (Unaudited) 8 B-112 G-92 096670 B-15 (Dollars in millions, 0 R-23 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 LTM 1Q'20 QoQ YoY LTM R-88 except per share data and where noted) G-234 G-15 B-234 9 FEE RELATED EAR
Slide 31: Reconciliation of GAAP to Total Segment Information
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Reconciliation of GAAP to Total Segment Information 8 B-112 G-92 096670 B-15 0 R-23 R-88 (Dollars in millions) 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 LTM 1Q'19 LTM 1Q'20 FY'18 FY'19 G-234 G-15 B-234 INCOME (LOSS) BEFORE PROVISION FOR INCOME 9 EAEAEA TAXES $
Slide 32: Reconciliation of GAAP to Total Segment Information, continued
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Reconciliation of GAAP to Total Segment Information, continued 8 B-112 G-92 096670 Total Reportable Consolidated Reconciling Carlyle Total Reportable Consolidated Reconciling Carlyle B-15 1 1 (Dollars in millions) Segments Funds Items Consolidated
Slide 33: Reconciliation of GAAP to Total Segment Information, continued
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Reconciliation of GAAP to Total Segment Information, continued 8 B-112 G-92 096670 (Dollars in millions) 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 LTM 1Q'19 LTM 1Q'20 FY'18 FY'19 B-15 0 R-23 REVENUE RECONCILING ITEMS R-88 G-234 G-15 B-234 Unrealized performanc
Slide 34: Reconciliation for Total Segment Information, continued
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Reconciliation for Total Segment Information, continued 8 B-112 G-92 096670 B-15 0 R-23 R-88 G-234 RECONCILIATION OF TOTAL INVESTMENTS RECONCILIATION OF G-15 B-234 ATTRIBUTABLE TO THE CARLYLE GROUP INC. ACCRUED PERFORMANCE ALLOCATIONS 9 EAEAEA B-16
Slide 35: GAAP Statement of Operations (Unaudited)
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 GAAP Statement of Operations (Unaudited) 8 B-112 G-92 096670 B-15 (Dollars in millions, except per share amounts) 1Q'19 1Q'20 LTM 1Q'19 LTM 1Q'20 0 R-23 R-88 G-234 REVENUES G-15 B-234 Fund management fees $ 353.4 $ 355.9 $ 1,360.9 $ 1,478.7 9 EAEAE
Slide 36: GAAP Balance Sheet (Unaudited)
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 GAAP Balance Sheet (Unaudited) 8 B-112 G-92 096670 B-15 0 R-23 R-88 G-234 As of March 31, 2020 G-15 B-234 Consolidated Consolidated 9 EAEAEA (Dollars in millions) Operating Entities Funds Eliminations Consolidated B-16 5 R-208 ASSETS R-13 G-232 Cas
Slide 37: Notes: Dividend Policy and Non-GAAP Financial Measures
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Notes 8 B-112 G-92 096670 Dividend Policy B-15 Under our dividend policy for our common stock that we adopted in connection with the Conversion, we expect to pay our common stockholders an annualized dividend of $1.00 0 R-23 per share of common sto
Slide 38: Notes, continued
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Notes, continued 8 B-112 G-92 096670 B-15 Notes on Assets Under Management (Pages 12-14) (continued) 0 R-23 (7) Fee-earning Assets Under Management refers to the assets we manage or advise from which we derive recurring fund management fees, and is
Slide 39: Notes on Fund Performance Tables
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Notes, continued 8 B-112 G-92 096670 Notes on Fund Performance Tables (Pages 25-28) B-15 0 R-23 (1) The data presented herein that provides “inception to date” performance results of our segments relates to the period following the formation of the
Slide 40: Notes on Fund Performance Tables, continued
R-8 G-51 R-0 B-94 G-74 08335E B-13 6 R-9 R-11 G-102 Notes, continued 8 B-112 G-92 096670 B-15 Notes on Fund Performance Tables (Pages 25-28), continued 0 R-23 (22) Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-a