Q4 2024 Carlyle Group Inc Earnings Call Transcript
Key Points
- The Carlyle Group Inc (CG) achieved a record performance in 2024, generating over $1.1 billion in fee-related earnings, marking a near 30% increase over 2023.
- The company expanded its fee-related earnings (FRE) margin to 46%, a 900-basis point year-over-year increase.
- Inflows exceeded $40 billion in 2024, contributing to more than $100 billion of inflows over the last two years.
- The Global Credit segment remained the fastest-growing area, with revenues increasing 22% in 2024 and assets under management reaching $190 billion.
- The Carlyle Group Inc (CG) returned more than $1 billion in capital to shareholders and implemented a $1.4 billion share repurchase authorization, reflecting confidence in the company's undervalued share price.
- Global Private Equity management fees declined by 7% in 2024, with expectations of a continued, albeit more modest, decline in 2025.
- The CLO business within the Global Credit segment faced market headwinds, impacting management fees.
- The fee-paying assets under management experienced a $6 billion mark-to-market decline due to credit market activity, although it was described as having a minor economic impact.
- The company anticipates a modest 6% growth in fee-related earnings for 2025, with potential upside dependent on market conditions.
- Realization activity levels are expected to increase in 2025, but the 6% FRE growth forecast does not assume a substantial pickup in realizations.
Hello, everyone, and welcome to the Carlyle Group fourth-quarter 2024 earnings. (Operator Instructions) Please be advised that today's conference is being recorded.
Now, it's my pleasure to turn the call over to the Head of Investor Relations, Daniel Harris. Please proceed.
Thank you, Carmen. Good morning, and welcome to Carlyle's fourth-quarter and full-year 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 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 accounting principles. We have provided
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