Q2 2024 Carlyle Group Inc Earnings Call Transcript
Key Points
- The Carlyle Group Inc (CG) achieved record assets under management (AUM) of $435 billion, up 13% year over year.
- The company generated record fee-related earnings (FRE) and FRE margins, with first half FRE of $539 million, 35% higher than the first half of 2023.
- Strong fundraising efforts resulted in $18 billion raised year-to-date and $41 billion over the last 12 months, with a target of $40 billion for 2024.
- The Carlyle Group Inc (CG) announced significant transactions, including a $10 billion asset-backed finance deal with Discover Financial Services and the sale of Cogentrix Energy at a valuation of nearly $3 billion.
- The company repurchased $178 million of shares in the second quarter, bringing the total repurchase amount to approximately $330 million for the first half of the year, with $1.1 billion remaining on the share repurchase authorization.
- Market volatility and recent trading days have introduced uncertainty, potentially impacting future performance and sentiment.
- The geopolitical headwinds in Asia, particularly affecting the CAP VI fund, may result in smaller fund sizes compared to predecessors.
- Despite strong performance, the company faces challenges in the competitive block business within the insurance sector, requiring disciplined capital deployment.
- Stock-based compensation expenses remain elevated due to performance stock unit grants, impacting financial results despite a reduction in share count.
- Management fees in Global Private Equity are expected to remain flat, with some vintages of private equity funds anticipated to be smaller than their predecessors.
Good day and thank you for standing by. Welcome to The Carlyle Group second 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 speaker, Daniel Harris, Head of Investor Relations. Please go ahead.
Thank you, Shannon. Good morning, and welcome to Carlyle's Second 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 accordance with
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