Q1 2025 Carlyle Group Inc Earnings Call Transcript
Key Points
- The Carlyle Group Inc (CG) reported record fee-related earnings of $311 million, up 17% year-over-year.
- The company achieved a record FRE margin of 48% and the highest level of distributable earnings in several years at $455 million.
- Assets under management reached a record $453 billion, indicating strong growth and expansion.
- Carlyle AlpInvest generated record FRE in the first quarter, nearly double the first quarter last year, with AUM growing 12% to a record $89 billion.
- Global Credit's quarterly fee-related earnings surpassed $100 million for the first time, an increase of nearly 50% from last year, driven by significant demand for private credit solutions.
- The macroeconomic environment remains uncertain, with trade policies and tariffs impacting investor sentiment and risk appetite.
- The long-term effects of trade policy are difficult to forecast, creating uncertainty in the market.
- The private equity market is facing headwinds, which could affect Carlyle's corporate PE franchise over the next 12 to 18 months.
- There is potential stress in the endowment sector, which could impact future fundraising if endowments slow investments in private markets.
- Market conditions remain dynamic, and while Carlyle is built to perform across cycles, the situation is fluid and the market backdrop is uncertain.
Good day and thank you for standing by. Welcome to the Carlyle Group first-quarter 2025 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 today, Daniel Harris, Head of Investor Relations. Please go ahead.
Thank you, Daniel. Good morning, and welcome to Carlyle's first-quarter 2025 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 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 Generally Accepted
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