Q1 2024 Carlyle Group Inc Earnings Call Transcript
Key Points
- The Carlyle Group Inc (CG) reported a record quarterly FRE of $266 million, a near 40% increase over the first quarter of the previous year.
- CG achieved a record FRE margin of 47%, significantly higher than the 35% in Q1 2023.
- Assets under management grew to $425 billion, up 12% year-over-year.
- CG successfully completed significant sales including McDonald's China and Neptune Energy, generating strong returns for LPs and performance revenues.
- The company remains on track to meet its 2024 financial targets, including a targeted $40 billion of inflows.
- The macroeconomic environment remains somewhat fragile, which could impact investment and market activities.
- Management fees only saw a modest increase of about 2% compared to the previous year, indicating slower growth in this revenue stream.
- The fundraising environment in Global Private Equity remains challenging, although there are some pockets of strength.
- Net accrued carry balance of $2.2 billion declined relative to the last quarter due to fund realizations and a relatively lower level of appreciation in carry funds.
- General and Administrative (G&A) expenses are expected to increase in the coming quarters, potentially impacting margins.
Good day, and thank you for standing by. Welcome to The Carlyle Group's First Quarter 2024 Earnings Conference Call. (Operator Instructions)
Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Daniel Harris, Head of Investor Relations. Please go ahead, sir.
Thank you, Norma. Good morning, and welcome to Carlyle's first quarter 2024 earnings call. With me on the call this morning is our Chief Executive Officer, Harvey Schwartz; and our Chief Financial Officer and Head of Corporate Strategy, John Redett.
Earlier this morning, we issued a press release and a detailed earnings presentation, which is also available on our Investor Relations website. This call is being webcast and a replay will be available. We will refer to certain non-GAAP financial measures during today's call. These measures should not be considered in isolation from or as a substitute for measures prepared in
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