Q3 2024 Carlyle Group Inc Earnings Call Transcript
Key Points
- The Carlyle Group Inc (CG) delivered record quarterly fee-related earnings, up 36% compared to the third quarter of 2023, with FRE margins reaching 47%.
- The company raised $9 billion of new capital in the quarter and $43 billion over the past 12 months, indicating strong fundraising capabilities.
- The underlying investment portfolio is performing well, with significant appreciation in corporate private equity funds, contributing to a nearly 30% increase in net accrued performance revenues.
- The Carlyle Group Inc (CG) is seeing strong momentum in its Global Wealth platform, with record $1.8 billion of wealth inflows this quarter, up 70% year over year.
- The company has made strategic moves to enhance its Asset Backed Finance capabilities, identifying differentiated partnerships and achieving record leverage loan and CLO issuance in 2024.
- Despite strong performance, the net IRR for certain buyout funds remains low, with CP.7 at 8% and CP.5 falling to 4%, indicating potential headwinds in buyout performance.
- The macroeconomic environment, including potential policy changes from the Trump administration, presents uncertainties that could impact market activity and regulatory conditions.
- There are concerns about the impact of tariffs and other aggressive policy measures on global trade and deployment outside the US, which could affect The Carlyle Group Inc (CG)'s operations.
- The company's stock-based compensation is currently elevated due to accounting treatment, which may impact financial metrics until it trends down to more normalized levels in 2025.
- Management fee growth in the private equity business is facing headwinds, particularly in corporate private equity, despite strong performance in other segments.
So in that, thank you for standing by, and welcome to Carlisle's Group's third quarter 2024 earnings conference call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be a question and answer session.
We ask that you please limit yourself to one question each year. I'll get back in the queue as time allows if you'd like to remove yourself from the queue, simply press star one on one. Again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Daniel Harris, Head of Investor Relations. Please go ahead, sir.
Thank you, Jonathan, and good morning and welcome to Carlisle's Third 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, maybe John or debt.
Earlier this morning, we issued a press release and a detailed earnings presentation, which is
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